GST RCM ON SERVICE RECEIVED BY TRUST REGISTERED UNDER GST

[SUDHIRKUMAR SHAH]

Trust is registered under the GST as certain activities are taxable. Now Trust receives legal service from advocate. whether this will be taxable service under RCM??

Question arouse in my mind because definition of "business entity" is not available in GST act, however definition of "Business" is available. However in notification 12/2017 Business entity definition is there which ultimately attract the definition of "Business".

on Analysis of definition of Business, it appears that Trust is also covered..

In Service tax there was specific definition was available of Business Entity, but in GST there is not.

AI Summary

Reverse charge applies to trusts receiving legal services, making the recipient trust liable to pay GST under RCM.
A trust receiving legal services is liable under the reverse charge mechanism because the GST provision imposes tax liability on a "person" receiving specified services; "person" includes trusts, and the clause uses "person" rather than "registered person" and does not limit liability to taxable supplies, indicating recipient-based obligation to pay GST for specified services.