GST on Individual Advocates, Senior Advocates and Firm of Advocates

The Central Goods and Service Tax Act covers the legal services provided by an individual advocate, firm of advocates or senior advocates by taxing the same at 18%. This article discusses the applicability, exemptions and GST rate on legal services provided by different service providers.

Applicability of GST on Advocates, Senior Advocates & Firm of Advocates

Legal service is a service provided by lawyers or advocates in regards to consultancy or assistance in any branch of law in any manner and also includes representational services in any court or tribunal. GST is applicable on providing legal services. 

GST Registration Requirement

GST registration is required if an advocate, senior advocate or firm of advocate provides legal services (exempt as well as taxable services) and he meets one or both of the below conditions:

• Turnover exceeds the GST registration threshold
• Tax is to be paid on forward charge 

Also, if legal services are provided to a corporate body with turnover exceeding Rs 40 lakh, then GST is applicable on reverse charge basis.

Taxability of legal services:

• In case of individual advocate or firm of advocates: If service is provided to a corporate body with gross turnover exceeding the registration threshold. It is applicable on a reverse charge basis.
• In case of senior advocate: If service is provided to-

1. Individual advocate or firm of advocates
2. Senior advocate
3. To a corporate body with gross turnover exceeding the registration threshold.

But, there are certain circumstances where the legal services provided are exempt which is discussed in the below topic.

Exemptions available for Advocates, Senior Advocates and Firm of Advocates

Below are the exemptions available to advocates, senior advocates and firm of advocates for providing legal services vide notification no.12/2017 Central Tax:

1. Service provided by an individual advocate or firm: Such legal services are exempt if provided to:

• Individual advocate or firm of advocates
• Senior advocate
• To a business entity who is eligible for exemption from registration under the CGST Act, 2017.
• To any government entity 
• Non-business entity

2. Services provided by senior advocate: Such legal services are exempt if provided to:

• To a business entity who is eligible for exemption from registration under the CGST Act, 2017.
• To any government entity
• Non-business entity

GST rates and HSN or SAC codes for Advocates, Senior Advocates & Firm of Advocates

SAC	Description of service	SGST	CGST	IGST
9982	Legal and accounting services	9%	9%	18%