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New GST on Advocates and Legal Services

Legal services are essential for individuals and businesses alike. But are they taxable under  GST ? The answer depends on who is providing the service and who is receiving it. This guide breaks down the gst on advocates, its applicability, and how lawyers and clients should manage it.

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Are Legal Services Taxable Under GST?

Yes, but with important exemptions.

As per GST rules, individual advocates and law firms are covered under GST, but the responsibility to pay tax lies with the recipient of the service, not the advocate. This is done through a mechanism called Reverse Charge.

New GST Rate on Lawyer Services in India

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

New GST on Lawyers: Key Points

Service Provider Recipient GST Applicable? Who Pays GST?
Individual Advocate Individual (non-business) ❌ No
Individual Advocate Business Entity (Registered under GST) ✅ Yes (RCM) Client
Law Firm Registered Business ✅ Yes (RCM) Client
Advocate/Law Firm Government or Court ❌ No (Exempt)

Old GST on Lawyers: Key Points

(Old GST Rates – Applicable Until 21st September)

Service Provider Recipient GST Applicable? Who Pays GST?
Individual Advocate Individual (non-business) ❌ No
Individual Advocate Business Entity (Registered under GST) ✅ Yes (RCM) Client
Law Firm Registered Business ✅ Yes (RCM) Client
Advocate/Law Firm Government or Court ❌ No (Exempt)

Old GST on Lawyers Fees in India

The gst on lawyers fees in india is:

  • 18% GST if the client is a registered business
  • 0% GST if the client is an individual (non-business)

This tax is not collected by the lawyer. Instead:

  • The client (business) pays 18% GST under RCM
  • The lawyer does not charge GST on the invoice
  • The client must self-invoice and pay GST to the government

Are Advocates Required to Register Under GST?

Advocate Type GST Registration Required?
Individual Advocate No (if only legal services)
Law Firm No (if only legal services)
Advocates with other taxable income Yes

Input Tax Credit (ITC) on Legal Fees

If you are a business client:

  • You can  claim Input Tax Credit  on GST paid under Reverse Charge for legal services
  • You must record this in GSTR-3B as both liability and ITC

Conclusion

Understanding the gst on advocates helps both legal professionals and their clients stay compliant. While most advocates are exempt from registration, businesses must handle GST payments under RCM properly.

Madan Murari
Chartered Accountant
MRN No.: 509164
City: Patna

Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone!

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