Legal Services to attract GST

New Delhi, July 16: A clarification was made recently. Finance Ministry has said that services Provided by Lawyers would attract Goods and Service Tax. This tax would be applicable under the Reverse Charge Mechanism. A press release was issued in this regard.

The press release clearly mentions that "there is no change made in the taxation of legal services in the GST era." The release also clearly mentions the definition of service issued by lawyers as" legal service means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority".

The ministry has also clearly said that "legal services, which includes representational services, provided by advocates are under reverse charge". The clarification was issued after the Delhi High Court has recently asked the position to state whether legal services would be taxed under GST.