GST Registration and Exemptions for Lawyers

Goods and Services Tax (GST) is a unified indirect tax system that applies across India and affects professionals in many fields, including law. For legal practitioners, understanding GST is important to ensure compliance and avoid penalties. Whether you are an individual advocate, part of a law firm, or working as a freelance legal consultant, you need to know the rules. In this blog, you will learn about the GST registration and exemption for lawyers. This blog is designed to help lawyers understand GST registration, exemptions, and compliance requirements simply and clearly.

GST Applicability on Lawyers, Senior Advocates, and Advocate Firms

Legal services are professional services offered by advocates or lawyers. These include giving legal advice, drafting documents, or assisting clients in any branch of law. They also cover representational work before courts, tribunals, or other legal authorities. Under India’s GST law, legal services are treated as a taxable supply. However, most lawyers are not required to collect GST themselves. In many cases, especially when the client is a business entity, the GST is paid by the client under the Reverse Charge Mechanism (RCM). Both lawyers and clients need to understand these rules to ensure proper compliance.

When Is GST Registration Mandatory for Lawyers?

Under the latest GST regulations, GST registration is mandatory for lawyers, including individual advocates and law firms, in the following situations:

1. GST Registration Requirement for Legal Professionals

• Turnover exceeds the GST threshold

An advocate, senior advocate, or firm of advocates must register for GST if their total annual turnover goes beyond the prescribed limit. In most states, this limit is Rs. 40 lakh. The threshold limit in the special category states is Rs. 20 lakh. Once the turnover crosses the threshold, GST registration becomes mandatory, even if the services provided are exempt under reverse charge.

• Tax under the forward charge applies

A senior advocate must register for GST if they supply legal services to another advocate or a law firm. In such cases, GST applies under the forward charge mechanism. The senior advocate must collect and deposit GST with the government. This condition makes GST registration mandatory, regardless of the turnover amount.

• Reverse charge applies when serving large corporate bodies

If a legal professional, whether an individual advocate, senior advocate, or law firm, provides services to a business entity that exceeds the GST threshold, GST applies under the reverse charge mechanism. In this case, the recipient (the corporate client) pays the tax directly to the government. The advocate does not need to pay the GST but should keep proper records and issue a valid tax invoice.

2. Taxability of Legal Services

1. For Individual Advocates and Firms of Advocates

When legal services go to a business entity whose turnover exceeds the registration threshold, GST becomes applicable. The business client pays the GST under the reverse charge mechanism. The advocate or firm does not register for GST unless their turnover exceeds the threshold or they provide any other taxable service under a forward charge.

2. For Senior Advocates

Senior advocates face three different tax conditions based on the type of client:

• To another advocate or law firm, GST applies under a forward charge. The senior advocate collects and pays the tax. GST registration is compulsory in this case.
• To another senior advocate: GST applies under the forward charge. The same rule of registration applies.
• To a corporate body with a turnover above the threshold, GST applies under reverse charge. The client pays the tax. The senior advocate does not need to register unless providing other services under a forward charge or exceeding the turnover limit.

GST Exemption for Lawyers

Listed below are the GST exemptions for lawyers under Notification No. 12/2017 – Central Tax (Rate):

1. Exemptions for Individual Advocates and Firms of Advocates (Except Senior Advocates)

• Services to Other Advocates or Law Firms

When an individual advocate or a firm of advocates provides legal services to another advocate or a law firm, GST does not apply. This promotes professional collaboration without tax obligations.

• Services to Senior Advocates

Legal services offered by a senior advocate remain exempt. This exemption applies regardless of the senior advocate's status or income level.

• Services to Small Business Entities

When legal services go to a business entity whose turnover falls below the registration threshold under the CGST Act, no GST applies. The current threshold is Rs. 20 lakh for most states and Rs. 10 lakh for special category states.

• Services to Government Bodies

Legal services provided to any department or office of the Central Government, State Government, Union Territory, or local authority qualify for exemption. These services support public administration without incurring GST.

• Services to Non-Business Individuals

When an individual or firm of advocates provides services to a person who does not run a business, the service remains GST-exempt. This includes services to private citizens seeking personal legal help.

2. Exemptions for Senior Advocates

• Services to Small Business Entities

A senior advocate does not charge GST if the client is a business entity that falls below the GST registration threshold under the CGST Act. This ensures that small businesses do not bear additional tax costs for essential legal advice.

• Services to Government Bodies

When a senior advocate provides legal services to any government authority, GST does not apply. This helps ensure smooth legal functioning within government departments.

• Services to Non-Business Individuals

If the client is not a business entity, the senior advocate does not charge GST. This includes cases where individuals seek legal advice for personal matters, such as property or family issues.

Understanding GST Rates and HSN/SAC Codes for Legal Practitioners

However, SAC 9982 applies to legal services rendered by advocates, senior advocates, and law firms. GST is charged at 18% (split into 9% SGST and 9% CGST for intra-state supplies, or 18% IGST for inter-state supplies).

GST Registration Process for Lawyers

Below is the step-by-step GST registration process for lawyers:

Step 1: Visit the GST Portal

The lawyer opens the official GST portal. This portal provides the application form and guidance.

Step 2: Generate Temporary Reference Number (TRN)

The applicant enters the basic details such as name, mobile number, and email ID. The system sends an OTP to verify the contact. After OTP validation, the system creates a TRN.

Step 3: Fill Form GST REG-01

The lawyer uses the TRN to access Form GST REG-01. This form includes sections for business type, PAN, place of practice, nature of services, bank details, and address.

Step 4: Upload Required Documents

The advocate submits the mandatory documents:

• PAN card of the applicant or firm
• Photograph of the proprietor or partners
• Address proof of place of practice (like an electricity bill or a rent agreement)
• Bank statement or cancelled cheque

The officer must not ask for any extra documents that are not listed in Form GST REG 01.

Step 5: Complete Aadhaar Authentication

The applicant chooses Aadhaar authentication. The system links the Aadhaar of the authorised person. Once Aadhaar is authenticated, the application goes for automatic approval in most low-risk cases.

Step 6: Submit the Application

The lawyer submits the completed application. The system acknowledges the submission and issues an Application Reference Number (ARN).

Step 7: Application Processing and Verification

• If the officer finds no issues, GST registration is approved within 7 working days.
• If the officer needs more information, they issue a notice in Form GST REG 03.
• The applicant must reply within 7 working days.
• In high-risk cases or if Aadhaar is not authenticated, the officer may conduct a physical verification. In such cases, registration is granted within 30 working days.

The officer must mention what is missing or incorrect and cannot make vague or unnecessary requests.

Step 8: Receive GSTIN and Certificate

Once approved, the system generates the GSTIN (Goods and Services Tax Identification Number). It also provides a registration certificate in Form GST REG 06.

Reverse Charge Mechanism (RCM) for Legal Services

Under the Reverse Charge Mechanism (RCM), the responsibility to pay GST shifts from the advocate or law firm to the business entity receiving the legal service. When a business whose turnover crosses the GST registration threshold receives legal services from an individual advocate, senior advocate, or a firm of advocates, it must pay GST. The applicable rate is 18%, which includes 9% CGST and 9% SGST or 18% IGST for interstate supply. The business must register under GST, issue a self-invoice, make the payment in cash, and report it in GSTR-3B. This rule applies even if the advocate is unregistered.

Compliance Requirements for Registered Lawyers

Listed below are the compliance requirements for registered lawyers:

1. Mandatory Multi-Factor Authentication (MFA)

Every GST-registered lawyer must log in to the GST portal using multi-factor authentication. This security measure applies to all users and prevents unauthorised access to return filing, invoice uploading, and other activities. It includes a password and a second verification method, such as an OTP.

2. Monthly Return Filing – GSTR-1 and GSTR-3B

GSTR-1 captures details of all outward supplies. Lawyers must report every invoice and maintain accuracy in the invoice number, date, SAC code, and value. GSTR-3B is a summary return that includes details of taxable supplies, exempt supplies, and tax liability. From July 2025, GSTR-3B gets hard-locked, so no edits are allowed after submission. Errors must be corrected in GSTR-1A of the following month.

3. Correct Classification and Reporting of Legal Services

Lawyers must use the correct SAC code (9982) while reporting legal services. If they provide a mix of taxable and exempt services, each must be reported under the right category. Mismatches between GSTR-1 and GSTR-3B lead to system errors or notices. Every lawyer must check that the service value matches in both returns.

4. Input Tax Credit (ITC) Reconciliation

Lawyers who pay GST under the forward charge mechanism can claim Input Tax Credit. They must match the credit available in GSTR-2B with the credit claimed in GSTR-3B. Mismatched or excess claims result in reversed credits or penalty notices. Only credits supported with valid tax invoices from registered suppliers are allowed.

5. Eligibility for QRMP or Composition Scheme

If a lawyer’s annual turnover is below Rs. 75 lakh, they may choose the QRMP scheme (Quarterly Return, Monthly Payment). Under this, GSTR-1 and GSTR-3B are filed quarterly, while tax is paid every month. Those opting for the Composition Scheme cannot collect GST or claim ITC and must pay a fixed tax on turnover.

6. Reverse Charge Mechanism (RCM) Compliance

If a business entity pays GST under RCM for legal services, the lawyer must mention such services in Table 4B of GSTR-1. If the lawyer receives services under RCM, they must report these in Table 3.1(d) of GSTR-3B and pay GST in cash. RCM compliance is essential even when the lawyer does not issue a tax invoice.

7. Timely and Accurate Record Maintenance

A GST-registered lawyer must maintain records of all invoices, bills, receipts, and return filings for at least six years. Books of accounts must include tax amounts, input credit, and outward supply details. All documents must be available for audit or inspection.

Conclusion

GST registration for lawyers, senior advocates, and law firms depends on the nature of their services and their turnover. Some legal services are exempt, while others attract GST under forward or reverse charge. Legal professionals must understand these rules and meet all compliance requirements. Filing returns on time and maintaining records are essential. Staying updated helps avoid penalties, ensures smooth practice, and builds trust with both clients and tax authorities.

FAQ

Q1. Is GST registration mandatory for all lawyers?

No, GST registration is not mandatory for all lawyers. It becomes compulsory if the lawyer’s turnover exceeds the prescribed threshold limit or if they provide taxable services under a forward charge.

Q2. Are legal services provided by advocates exempt from GST?

Yes, legal services provided to individuals, non-business entities, and unregistered business entities are generally exempt under Notification No. 12/2017-Central Tax (Rate).

Q3. What is the GST rate applicable to legal services?

Legal services fall under SAC code 9982 and attract 18% GST (9% CGST + 9% SGST) when taxable under forward or reverse charge.

Q4. When does reverse charge apply to legal services?

Reverse charge applies when a registered business entity receives legal services from an advocate or law firm. In such cases, the business must pay GST directly.

Q5. Do senior advocates have different GST rules?

Yes, senior advocates are liable for GST under forward charge when providing services to other advocates or law firms. However, services to certain entities remain exempt.