Applicability of RCM on Advocate Services, Goods and Services Tax - GST

[Arif Kathiria]

Dear Experts

Our Client is claiming exemption vide notification no. 2/2017 and further amended 27/2017. Finished products are wheat flour, Dal etc. Our question is wether RCM on advocate services be applicable ??

Posts / Replies

[KASTURI SETHI]

RCM is applicable on Advocate Services if the services are received by a business entity. (There are other conditions also). Your client is a business entity irrespective of the fact that he is dealing in the supply of exempted goods. For example ; Petrol is out of the scope of GST but if the petrol dealer hires services of an Advocate, GST is to be paid by the petrol dealer under RCM.

I also point out that Notification No.2/17-CT (R) dated 28.6.17 has amended vide Notification no.28/17-CT(R) dated 22.9.17 and not vide Notification No.27/2017 as mentioned by you. Notification No.28/17 makes branded goods ineligible for exemption from GST. The goods put up in unit container were already ineligible.

[Ganeshan Kalyani]

The applicable of RCM liability is upon the nature of service availed and not on the type of supply of goods. The condition given in Notification 13/2017-CTR dated 28.06.2017 as updated from time to time need to be referred to see the applicable of RCM liability.