GST on Legal Services by Advocates including Senior Advocates

Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. Legal services provided by advocates are also subject to GST. In this article, we will discuss the GST on legal services provided by advocates, including senior advocates.

GST on Legal Services:

Under GST, legal services provided by advocates are treated as a supply of services and are subject to GST. The rate of GST applicable on legal services is 18%. However, if the services are provided to a business entity registered under GST, the advocate is required to charge GST at the rate of 18% and also issue a tax invoice. If the services are provided to an individual or a non-GST registered business entity, the advocate is not required to charge GST.

Applicability of GST on Senior Advocates:

Senior advocates are also required to pay GST on their legal services. However, the GST rate applicable to senior advocates is higher than that of regular advocates. Senior advocates are required to pay GST at the rate of 18% on their legal services, and they are also required to register under GST.

Impact of GST on Small and Medium Businesses and Startup Founders:

GST has a significant impact on small and medium businesses and startup founders who require legal services. The 18% GST rate on legal services can increase the cost of legal services, making it difficult for small and medium businesses and startup founders to access legal services. However, if the business entity is registered under GST, they can claim input tax credit on the GST paid on legal services, which can help reduce the overall cost of legal services.

Conclusion:

In conclusion, GST is applicable on legal services provided by advocates, including senior advocates. The rate of GST applicable on legal services is 18%. The impact of GST on small and medium businesses and startup founders can be significant as the 18% GST rate can increase the cost of legal services. However, if the business entity is registered under GST, they can claim input tax credit on the GST paid on legal services, which can help reduce the overall cost of legal services.