Hi,
A law firm (a group of lawyers / advocates) is registered under GST as their turnover is above 20 lacs p. a. and they offer legal services for a company which is also registered under GST and it’s turnover is also above 20 lacs – my query is: What are the GST implications for the law firm?
a. Should they be charging GST under RCM? Or
b. Should they be charging GST under normally (forward charge) ? Or
c. Should they be showing their consulting fees to this particular company under EXEMPTED sales?
Regards.
Mohammed Salman Asked question December 18, 2020
- No GST registration is required to be taken by individual advocate / firm of advocates even if their turnover exceeds Rs 20 lakhs as their legal services are covered under reverse charge or are exempt (if provided to non business entity or entity having turnover less than Rs 20 lakh).
- No GST is to be charged by them. They can at most issue invoice without GST stating that GST is to be paid under reverse charge by the recipient.
- It is not exempted sales.
Also refer to detailed article on reverse charge on legal services Click Here.
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Frah Saeed Changed status to publish December 22, 2020