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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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:
- Paying GST at 18%
- Filing the GST in their GST returns
- Claiming Input Tax Credit (if eligible)
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.
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.
Frequently Asked Questions
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Is GST applicable on services provided by advocates?Yes, but under Reverse Charge Mechanism. The client must pay GST, not the lawyer.
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What is the GST on lawyers fees in India?It is 18%, applicable only when the client is a registered business.
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Do lawyers need to register under GST?No, if they only provide legal services and receive payments under RCM.
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Can a business claim ITC on legal fees?Yes. Businesses can claim Input Tax Credit (ITC) on GST paid under Reverse Charge.
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Are government legal services taxed under GST?No. Services to courts, tribunals, or government bodies are exempt from GST.
