Registration under GST

[Archna Gupta]

I have few small queries so please answer. The queries are:

1. Advocates or any other person who is supplying goods/ services which are chargeable to GST under RCM would be required to take GST registration if they are receiving goods/ services from other person which are also liable to GST under RCM e.g.,

• If advocate is receiving legal services from other advocate
• GTA are taking legal services from advocate or vice versa

2. If a trader has its business in Delhi and trading in taxable goods but not registered because his aggregate turnover is below 20 lacs say his aggregate turn is only ₹ 2 lacs. Now he goes to Haryana for some exhibition there and he has to compulsorily register in Haryana as casual taxable person. The queries are

• Now is it compulsory for him to register in Delhi also or casual person registration has nothing to do with regular business.
• Will there be any difference if including his Haryana turnover his aggregate turnver is below 20 lacs or if including his Haryana turnover his aggregate turnver is above 20 lacs

[Alkesh Jani]

Sir/Madam,

In this regards, my point of view is as follows:-

1. If any business entity is receiving legal service from an Advocate of Firm of Advocate in terms of Notification No. 13/2017-CT (Rates) dated 28^th June, 2017 Sl.No.2 and its corrigendum, then GST is payable under RCM by the business entity in taxable territory. The legal service has been defined by way of explanation “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.”.

1.1 Now if an Advocate is receiving legal service from another Advocate than, it is an exempted service in terms of Sl.No. 45 of Notification No. 12/2017-CT (Rate) dated 28^th June,2017.

1.2 If GTA avails the legal service from an Advocate of firm of Advocates, than GTA is required to take registration, if not taken, has to pay the GST and vice a versa, in terms of Section 24(iii) of CGST, Act, 2017.

2. “Casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.

2.1 From above it is clear that a person should have a fix place of business in a state. A casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State from where he seeks to supply as a casual taxable person. Therefore, registration in a state is mandatory to become a casual taxable person.

2.2 “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

From above, it is clear that all taxable supplies made by a person having same PAN number on all India basis is to be included in arriving the threshold limit.

I invite our experts to correct me if mistaken.

[CASusheel Gupta]

Completely agree with Alkesh Jani Ji

Recently Authority for Advance Ruling, West Bengal in the case of Joint Plant Committee has held that to meet the requirement of section 9(3) registration is mandatory even though otherwise not required.

Regards

CA Susheel Gupta

8510081001, 9811004443

[KASTURI SETHI]

I support the views of both experts. A comprehensive reply by Sh.Alkesh Jani Ji is really appreciable. Posting reply first matters a lot as it reflects original interpretation, original analysis & understanding of law.(insight) .

[Alkesh Jani]

Thanks a lot Sh. Kasturiji Sir, as your words has encouraged me a lot

[Archna Gupta]

Thank you so much Alkesh ji. Your reply is very helpful and cleared all my doubts.

Thanks Kasturi ji and Susheel ji.

[Archna Gupta]

Dear Experts

I need to confirm three more things on advocate services. Please reply.

1. If an advocate or firm of advocates is receiving legal services from senior advocate then that advocate or firm of advocates need to register in GST and pay tax on RCM.

2. If any partner of firm of advocates is a senior advocate than if that firm provides legal services to another advocate or firm of advocates the what would be the legalities.

3. Legalities in case of one senior advocate or firm of advocates (in which one partner is senior advocate) provides legal services to another senior advocate or firm of advocates (in which one partner is senior advocate).

AI Summary

Reverse charge on legal services: recipients may need registration and must pay GST when notified under reverse charge provisions. Business recipients must pay GST under reverse charge on legal services specified in the rates notification; legal services include advisory and representational work. Legal services supplied between advocates are exempt under the rates notification and so generally do not attract reverse charge. Goods transport operators and other recipients who procure taxable legal services must register and pay tax under reverse charge; casual taxable persons must register in the State of supply, and aggregate turnover for threshold purposes is computed on an all India PAN basis, including casual supplies.