GST on Legal Services in India (Rate, SAC Code, RCM & Invoice 2026)
GST on legal services in India is 18%, but who pays the tax depends on whether the advocate is an individual or a firm. This guide explains the reverse charge mechanism (RCM) for advocates, direct GST for law firms, SAC codes, and correct invoice formats.
By Arjun Sharma· GST & Tax Compliance Specialist···Reviewed for GST accuracy
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GST Rate on Legal Services
Legal services attract 18% GST under SAC code 998211. This covers legal representation, contract drafting, advisory opinions, litigation support, arbitration, and intellectual property services. Law firms with GST registration charge 18% GST on their invoices directly to clients. Individual advocates have a unique treatment — they do not charge GST on invoices; instead, the business client pays under the Reverse Charge Mechanism (RCM).
Reverse Charge Mechanism (RCM) for Advocates
Under Notification 13/2017-CT(Rate), when a registered business entity receives legal services from an individual advocate or a firm of advocates, the recipient (business) is liable to pay GST under RCM. The advocate does not need to register for GST and does not charge GST on the invoice. The business client self-generates a payment voucher, pays 18% GST to the government, and can then claim ITC (if eligible). RCM does not apply when legal services are for personal use (not business).
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ABC Law Partners LLP (Mumbai, GSTIN: 27AABCA1234R1ZM) bills TechCorp Pvt. Ltd. (Bengaluru, GSTIN: 29AABCT5678B1ZK) ₹2,50,000 for M&A transaction advisory (SAC 998211). Inter-state supply — IGST 18% = ₹45,000. Total: ₹2,95,000. TechCorp can claim ITC of ₹45,000. Note: if the same service was from an individual advocate, TechCorp would pay ₹45,000 IGST under RCM and the advocate would not charge GST.
When are Legal Services Exempt from GST?
Legal services provided by an advocate to an individual client for personal (non-business) matters are exempt from GST. Services by a senior advocate to another advocate are exempt. Legal aid services notified under the Legal Services Authorities Act, 1987 are fully exempt. Mediation and conciliation services under court-annexed programs are also exempt. All other commercial legal services attract 18%.
FAQs
Do advocates charge GST on their legal fees?
Individual advocates do not charge GST — the business client pays under RCM. Law firms (LLPs, partnerships) charge 18% GST directly on invoices issued to business clients.
What SAC code should a lawyer use?
SAC 998211 for legal advisory and representation. SAC 998212 for arbitration. SAC 998213 for document drafting and certification. All attract 18% GST.
Can a company claim ITC on legal fees paid under RCM?
Yes. When a business pays GST under RCM for advocate services, it can claim ITC of the same amount in the same month (for registered businesses with eligible ITC).
Is legal consultation for personal matters taxable?
No. Legal services provided to individuals for personal legal matters (divorce, property dispute for personal use, etc.) are exempt from GST under Notification 12/2017-CT(Rate).
Why Businesses Stop Using Excel for GST Invoices
Manual GST calculation mistakes
One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.
Slow invoice creation
Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.
Formatting breaks on every device
Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.
No easy sharing or payment link
Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.
Incorrect tax type (IGST vs CGST+SGST)
Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.
Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.
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