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New GST on Advocate Services in India

The legal sector plays a vital role in justice, business contracts, and dispute resolution. But are legal professionals like advocates and lawyers required to charge GST? The answer depends on who they’re serving and what kind of legal services they provide. In this guide, we’ll explain the GST on advocate services in India, and how it applies to law firms, individual advocates, and clients.

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GST Rates

New GST Rate on Advocate Services in India

The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST treatments for advocate services (no compensation cess).

New GST on Advocate Fees: Who Pays?

Advocate Type Client Type GST Applicability
Individual advocate / partnership firm Individual or business with turnover < ₹20 lakh (₹10 lakh in special states) ❌ Exempt
Individual advocate / firm Business entity (turnover > ₹20 lakh) ✅ Taxable under RCM
Senior advocate Any business entity ✅ Taxable under RCM
Legal firm (corporate legal services) Corporates / LLPs ✅ RCM (domestic), Forward charge for exports

New GST Rate on Advocate Services

Service New GST Rate Under RCM?
Legal advice / consultancy by individual advocate 18% Yes (business clients)
Representation in courts / tribunals 18% Yes (business clients)
Corporate legal support (via law firm) 18% RCM domestic, Forward charge for export

Are Advocate Services Covered Under GST?

Yes, legal services fall under the  GST (Goods and Services Tax)  regime. However, many advocate services are exempt, especially when provided by individual lawyers or law firms to specific types of clients.

Legal services include:

  • Legal advice and consultancy
  • Drafting of legal documents
  • Representation before courts and tribunals
  • Arbitration, mediation, and litigation support

They fall under  SAC Code  9982 (Legal and Accounting Services).

Old GST on Advocate Fees: Who Pays?

(Old GST Rates – Applicable Until 21st September)

Advocate Type Client Type GST Applicability
Individual advocate / partnership firm Individual or business with turnover < ₹20 lakh ❌ Exempt
Individual advocate / firm Business entity (turnover > ₹20 lakh) ✅ RCM
Senior advocate Any business entity ✅ RCM
Legal firm (corporate legal services) Corporates / LLPs ✅ RCM or Forward

Reverse Charge Mechanism (RCM) in Advocate Services

Under RCM, the client (not the advocate) is responsible for:

Old GST Rate on Advocate Services

Service GST Rate Under RCM?
Legal advice by individual advocate 18% Yes (RCM)
Representation in courts / tribunals 18% Yes (RCM)
Corporate legal support (via law firm) 18% RCM or Forward

When GST is NOT Applicable

Scenario GST Status
Advocate services to individual clients ❌ Exempt
Advocate services to business with turnover < ₹20 lakh ❌ Exempt
Legal aid or govt-appointed services ❌ Exempt

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Conclusion

Understanding the GST on advocate services in India is important for both lawyers and clients. While  Goods and Services Tax (GST)  mostly operates under  RCM  for legal professionals, businesses availing these services must remain compliant by paying and filing the GST themselves.

Nishant
Nishant
Chartered Accountant
MRN No.: 445516
City: Delhi

I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.

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