Charging of GST on Legal Fee bills under Reverse Charge Mechanism in Department of Posts

PA/Accts/GST-AP/2024-25/937 to 1011

Government of India

Ministry of Communications 

Department of Posts Postal Accounts Wing 

Dak Bhawan, Sansad Marg New Delhi-110001

Dated: 11/03/2025

To,

1. All Heads of the Circles

2. All Heads of the PAOS

Sub.: Charging of GST on Legal Fee bills under Reverse Charge Mechanism- reg.

It has come to the notice of many Postal Circles that several audit objections have been raised regarding the non-charging of GST on legal fees paid to Government Counsels. These circles have sought clarification on charging of GST on Legal Fee bills under Reverse Charge Mechanism.

2 In this connection, it is to inform that according to Sr. no. 2 of Notification No. 13/2017 - Central Tax (Rate) dated 28.06.2017, services provided by an individual advocate, including a senior advocate or a firm of advocates, by way of legal services directly or indirectly to any business entity located in the taxable territory, are covered under RCM.

3 Further, as per Sr. no 45(b) and 45(c) of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017, as amended, vide Notification No. 2/2018- Central Tax (Rate) Dated 25-01-2018, services provided by a partnership firm of advocates or an individual as an advocate or a senior advocate, by way of legal services, to the Central Government, State Government, Union territory, local authority, Governmental Authority, or Government Entity are exempt from GST.

4 Hence, it is informed that legal services received by the Department of Posts from government counsels or advocates are exempt from GST under Notification No. 12/2017-CT, despite the standard GST rate being 18%.

5 This issues with the approval of the Competent Authority.

(Saurabh M. Deshmukh)

Director (Accounts)

Copy to for information:

1. All CGMs/GMs/DDSG of Postal Directorate