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

Place of supply rules determine GST liability on foreign legal services; reverse charge may apply if POS is in India.
Whether GST applies to legal consultancy and foreign court representation paid from India hinges on place of supply and reverse charge. One view treats the supplier outside India with place of supply in India, invoking the Reverse Charge Mechanism and IGST because the recipient is in India and services can be supplied without recipient presence. The contrary view treats the place of supply as abroad since services are performed outside India, so GST is not attracted under forward charge or RCM; an incorrect position risks interest and penalties.