Legal Services – Entry 45

# Legal Services – Entry 45

## Structure of the Exemption

Services provided by –

### (a) An Arbitral Tribunal to:

i. Any person other than a business entity; OR

ii. A business entity whose aggregate turnover in the preceding FY is up to the threshold making it eligible for exemption from registration under CGST Act; OR

iii. CG, SG, UT, local authority, Governmental Authority or Government Entity.

### (b) A Partnership Firm of Advocates / an Individual Advocate (other than a senior advocate) by way of legal services to:

i. An advocate or partnership firm of advocates providing legal services;

ii. Any person other than a business entity;

iii. A business entity with aggregate turnover ≤ threshold for registration exemption in preceding FY; OR

iv. CG, SG, UT, local authority, Governmental Authority or Government Entity.

### (c) A Senior Advocate by way of legal services to:

i. Any person other than a business entity;

ii. A business entity with turnover ≤ threshold for registration exemption in preceding FY; OR

iii. CG, SG, UT, local authority, Governmental Authority or Government Entity.

## Key Definitions

• Legal service – any service relating to advice, consultancy or assistance in any branch of law, in any manner, including representation before any court, tribunal or authority.
• Advocate [Sec 2(1)(a), Advocates Act 1961] – an advocate entered in any roll under the Act.
• Arbitral Tribunal – a sole arbitrator or a panel of arbitrators.
• Senior Advocate – an advocate so designated by the Supreme Court / High Court (with consent) for ability, standing at the bar, or special knowledge/experience; bound by Bar Council of India practice restrictions.

## Reverse Charge Reminder

If legal services are provided to a business entity with aggregate turnover exceeding the registration threshold in the preceding FY, the exemption does NOT apply and the business entity pays GST under reverse charge.

## Decision Table