Legal Services

[Kaustubh Karandikar]

XYZ is having head office in Mumbai and warehouse at Bhiwandi. Head office registered as principal place of business and Bhiwandi as additional place of business. XYZ having sales office at Kerala which is not registered with GST since no outward supply from Kerala. Kerala office received a legal service from an advocate firm but bill for the same in the name of XYZ, Head office. Is Kerala office required to register with GST for paying GST under reverse charge on legal services or head office can pay since the bill is in the name of head office?

AI Summary

GST Dilemma: Should Kerala Office Register to Pay Reverse Charge or Can Mumbai Handle It? Key Amendments Discussed. XYZ, with its head office in Mumbai and an unregistered sales office in Kerala, received a legal service billed to the head office. The issue is whether the Kerala office must register for GST to pay under reverse charge. One response suggests the head office can pay GST under reverse charge since the bill is in its name, but the Kerala office cannot claim GST credit due to lack of registration. Another advises that the Kerala office should register separately under GST as it is a distinct entity. A third response notes that post-amendment, Mumbai can claim ITC and discharge IGST RCM, considering the services directed to Kerala.