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GST Alert: Legal Services from Advocates Come Under Reverse Charge!

If you are a business entity receiving legal services from an advocate or a law firm, you are liable to pay GST under the Reverse Charge Mechanism (RCM) as per Notification No. 13/2017 – Central Tax (Rate) dated 28.06.2017.

📌 According to Entry No. 2 of the notification:

"Services provided by an individual advocate or firm of advocates, by way of legal services, to a business entity located in the taxable territory" shall be taxed under RCM.

That means:
✅ The recipient (you), not the advocate, must pay GST.
✅ You must discharge GST liability at the applicable rate (currently 18%) under RCM.
✅ Interest will be levied under Section 50 of the CGST Act if GST under RCM is not paid within the due date (usually the 20th of the following month in GSTR-3B).

🔍 Non-payment or delayed payment = interest + risk of penalty.

💡Ensure proper compliance to avoid interest and notices from the department.

🎥 Watch this video for a complete explanation on how RCM works for legal services and what steps you need to take as a recipient.

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