Liability to Register of Person dealing exclusively in supplies liable for reverse charge obtaining legal services from foreign Lawer
As per the Notification issued under Section 23(2) of CGST Act that the persons shall not be liable to registration if he is engaged exclusively supplying goods or services or both on which tax is payable under reverse charge.
Serial No.2 of Table contained in Notification No.13/2017-Central Tax (Rate) requires any business entity located in taxable territory to pay GST on reverse charge basis for legal services supplied by an individual advocate including a senior advocate.
Serial No.45(b) of Table contained in Notification No.12/2017-Central Tax (Rate) exempts services provided by a partnership firm of advocates or an individual as an advocate, by way of legal services to a business entity with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the case of special category states) in the preceding financial year.
Whether a Firm of Advocate
- whose aggregate turnover in the preceding financial year exceeded 20 lakh but
- due to Notification issued under Section 23(2) is not registered under GST
- avails the services of foreign Lawyer in the course of business,
requires registration under GST Act ?