Online Business & GST in India

The Goods and Services Tax (GST) applicable to online legal services in India generally falls under the 18% GST category. This includes both online and offline legal services provided by professionals such as advocates and law firms. The tax applies to legal consultation, documentation, and advisory services provided through digital platforms.

 However, there are certain exemptions in place, such as legal services provided by individual advocates to individual clients, which may be GST-exempt. But when services are provided to businesses or organizations, GST is typically applicable.

For specific cases, it is advisable to consult a tax expert for clarity.

In India, the Goods and Services Tax (GST) is a dual tax structure, which means that both Central GST (CGST) and State GST (SGST) are applicable for intra-state transactions. Here's how it works for your legal services:

Intra-State Transactions (within the same state):

        When BLF provides legal services to clients located in the same state, both CGST and SGST are applicable.

        The total GST rate is split equally between CGST and SGST. For example, if the applicable GST rate is 18%, 9% will go to CGST and 9% will go to SGST.

Inter-State Transactions (between different states):

        When BLF provides legal services to clients in different states, Integrated GST (IGST) is applicable.

        In this case, the full GST (e.g., 18%) is charged as IGST and is collected by the central government.

So, for intra-state services, there are two components (CGST and SGST), while for inter-state services, IGST applies

In India, Limited Partnerships (LPs) providing online legal filings, such as contracts, agreements, or licenses, are subject to 18% GST on their services. This falls under the category of professional services, which are taxable at this standard GST rate.

Here’s a breakdown:

    GST Rate: Legal services, including online legal filings provided by LPs, attract an 18% GST.

    Intra-State Transactions: For services provided within the same state, the GST is split into 9% Central GST (CGST) and 9% State GST (SGST).

    Inter-State Transactions: For services provided across states, 18% Integrated GST (IGST) is applicable.

    Exemptions: Some legal services provided by advocates may be exempt, especially if rendered to individual clients in specific circumstances. However, when services are provided by LPs, GST generally applies.

As a provider of online legal services, it's important for your LP to remain compliant with GST regulations, including proper invoicing and timely filing of GST returns.