TaxTMI 
TaxTMI 
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?
Legal Services
22 Apr 2019 
3 Replies 
1526 Views Asked by
Reverse charge on legal services: head office may discharge GST and claim ITC, while branch registration remains required.
Invoice issued in the head office name permits the head office to discharge GST under the reverse charge mechanism, but an unregistered branch cannot claim or receive distribution of the related input tax credit. Alternatively, branches are a distinct person requiring separate registration. A post-amendment deeming rule may treat services provided on direction and on account of a registered person as received by that registered person, enabling ITC and reverse charge compliance by the head office. (AI Summary)
Invoice issued in the head office name permits the head office to discharge GST under the reverse charge mechanism, but an unregistered branch cannot claim or receive distribution of the related input tax credit. Alternatively, branches are a distinct person requiring separate registration. A post-amendment deeming rule may treat services provided on direction and on account of a registered person as received by that registered person, enabling ITC and reverse charge compliance by the head office. (AI Summary)