New Delhi, Jul 16 (IANS): The government on Saturday clarified that advocates, including senior advocates and firm of advocates, will not need to pay Goods and Services Tax (GST) for representation before any court or tribunal or consultancy services, but it will be paid by the business entities who are recipients of the legal services.

Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity, will come under reverse charge mechanism under GST, Finance Ministry said here in a statement.

The services provided by an individual advocate including, a senior advocate and a firm of advocates, are liable for payment of GST under reverse charge by the business entity, it said.

"The legal services, which includes representational services, provided by advocates are also under reverse charge," it added.

The clarification came after points were raised about whether GST on legal services provided by advocates was in forward charge or reverse charge.

"There is no change made in taxation of legal services in the GST era," the ministry said.

Legal service has been defined to mean any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.