Goods and Service Tax Act 2017

Core GST Compliance

Compliance is the "routine maintenance" of your tax profile. In 2026, this is largely monthly:

• GSTR-1 (Outward Supplies): Filing details of all sales made. Due by the 11th (Monthly) or 13th (Quarterly/QRMP) of the following month.
• GSTR-3B (Summary Return): The most critical return where you declare summary totals and pay the tax. Due by the 20th, 22nd, or 24th depending on your state and turnover.
• GSTR-9 & 9C (Annual Return): A consolidated yearly summary and reconciliation. The deadline is December 31st following the end of the financial year.
  • 2026 Update: You can now file these after the deadline by paying an automated late fee through the portal; however, unfiled returns beyond 3 years are now permanently time-barred.
• ITC Reconciliation: Regularly matching your purchase invoices with the data uploaded by your suppliers (GSTR-2B) to ensure you are only claiming valid Input Tax Credit.

Legal Services Under GST

"Legal Services" have a unique status under the GST Act. Unlike most businesses, lawyers and law firms operate primarily under the Reverse Charge Mechanism (RCM).

• Who Pays the Tax? For legal advice or representation provided by an advocate or law firm to a business entity, the GST (18%) is paid by the client, not the lawyer.
• Senior Advocates: Their services are also under RCM when provided to a business. However, if a Senior Advocate provides services to another lawyer or a law firm, the tax treatment may involve Forward Charge (FCM) depending on specific contractual setups.
• Exemptions: Legal services provided to non-business individuals (like a person's private divorce case or property dispute) are generally exempt from GST.
• Registration: Most advocates do not need a GST registration if 100% of their income is subject to RCM. However, if they represent international clients or provide non-legal consultancy, registration becomes mandatory once they hit the turnover threshold (₹20L/₹10L).

GST Dispute Resolution (Litigation)

When the department issues a notice (e.g., for mismatched ITC or wrong tax rates), legal experts provide the following:

• Notice Management: Drafting technical replies to SCNs (Show Cause Notices) under Section 73 (non-fraud) or Section 74 (fraud/evasion).
• GST Appellate Tribunal (GSTAT): As of 2025-2026, the GSTAT is fully operational across India. This is a massive shift—businesses can now appeal departmental orders before a specialized tribunal instead of going directly to the High Court.
  • Advantage: Quicker resolution and specialized technical members who understand tax law better than generalist judges.
• Pre-deposit: To file an appeal in the Tribunal, you must pre-deposit 10% of the disputed tax amount (reduced from 20% in recent reforms to help business cash flow)