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Legal service under gst

06 August 2020

consultant providing legal service to an corporation.The corporation is not a legal entity under gst.In such scenarios whether consultant/ advocate will pay gst @ 18% on forward charge basis?

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7 Replies

Rajkumar Patel (602 Points)
Replied 06 August 2020

Yes definitely GST has to be Charged

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 06 August 2020

If you are a advocate/firm of advocates and providing legal services to any unregistered entity than its exempt from GST. (if providing services to Registered entity than also liability pay GST is on recipient of services under RCM)
You don't have any liability.

but if you only legal consultant (not advocate) and providing legal consultany service than you have yo pay tax under forward charge at 18% if registered (I.e Turnovers more than 20 lakh ect.)

Rajkumar Patel (602 Points)
Replied 06 August 2020

That exemption is only available for Legal Services provided by lawyer and senior advocate.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 06 August 2020

@ Rajkumar ji
This exemption is applicable to individual advocate / firm of advocates including senior advocate.(All)

Reference: Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017

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Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 06 August 2020

" The consultant providing Services to corporation"

Service provider is lawyer
Receptient is corporation (Registered/Unregistered) & not legal firm.

When corporation is registered : In term of Notification 13/2017 CT (R) corporation (Recepeint) is liable do RCM .

When Corporation is Not Registered: In term of Notification 12/2017 CT (R) , then it's Exempted Services.

Note : As per Section 24 of if person Required to pay tax under Reverse Charge need to obtain Registration compulsory . So if the corporation is URD & availing services of advocate need to get himself registered.

Sabita Sahoo (622 Points)
Replied 08 August 2020

Pankaj ji,here corporation is taking the service of consultant.In this scenario whether corporation required to take registration u/s 24 or consultant pay gst on forward basis?

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 09 August 2020

Dear Sabita

If it is Public Corporation (Govt Concern) then it is already exempted by Notification 12/2017 CT (r). So the Section 24 does not invoke in this case.

Note : & the RCM is also not attracts