Legal Fees under Reverse Charge

[Basha AbdulRazack]

Sir,

We are paying monthly Retainer Fees to Advocate but they are not charging GST, so Reverse Charge mechanism is applicable or not, please clarify.

Thanks & Regards

Razack.

AI Summary

Legal Services Retainer Fees Subject to GST Reverse Charge Mechanism per Section 9(3) of CGST Act 2017 A query was raised regarding the applicability of the Reverse Charge Mechanism (RCM) under GST for retainer fees paid to an advocate. The responses clarified that legal services are subject to RCM under Section 9(3) of the CGST Act, 2017, and GST must be paid by the service receiver. This requirement is not exempted, unlike certain other expenses under Section 9(4), which were deferred until June 30, 2018. Multiple contributors confirmed that GST on advocate fees must be paid by the receiver at 18%, as the deferral does not apply to these services.