Liability of GST on legal charges paid outside india

[SATYAPRASAD KOLLURU]

Sir,

A person availed legal assistance in the form of consultancy and representation in the foreign courts from an advocate of the foreign country. The payment towards legal charges was paid from India. Is GST applicable either as Reverse Charge as applicable to advocate services or Forward charge considering as import of service.

AI Summary

Debate on GST Applicability for Foreign Legal Services: Reverse Charge Mechanism vs. Service Performed Outside India, No Consensus. A discussion on the applicability of GST on legal charges paid for services rendered by a foreign advocate reveals differing opinions. One perspective suggests GST is applicable under Reverse Charge Mechanism (RCM) due to the inter-state nature of the transaction, while others argue that since the service is performed outside India, GST is not applicable. Some participants reference legal provisions and past rulings to support their views, with a consensus lacking. The debate highlights the complexity of determining GST liability for cross-border legal services, with potential risks of penalties for incorrect tax treatment.