One of our clients is an educational institution, registered as a Society and is eligible for Income Tax exemption. It is receiving some legal consultancy services from a firm of advocates. Is the service exempt from GST or does the client have to pay tax on reverse charge basis as a business entity?
Would be obliged for opinions of the experts in this forum.
Educational Society's Legal Services Subject to GST Under Reverse Charge Due to Hall Rental Activity An educational institution, registered as a Society and eligible for Income Tax exemption, seeks clarification on whether legal consultancy services from a firm of advocates are exempt from GST or subject to tax under the reverse charge mechanism (RCM). The institution occasionally rents out a hall and is registered under GST for this activity. Experts in the forum conclude that since the Society is engaged in commercial activity by renting out property, it is considered a business entity, and therefore, RCM applies to the legal services received. (AI Summary)
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