{"id":56623,"date":"2023-05-16T16:20:05","date_gmt":"2023-05-16T10:50:05","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=56623"},"modified":"2024-02-01T12:33:04","modified_gmt":"2024-02-01T07:03:04","slug":"how-to-apply-for-modification-of-fssai-license","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/","title":{"rendered":"How to Apply for Modification of FSSAI License?"},"content":{"rendered":"\n<p>FSSAI stands for the <strong><a href=\"https:\/\/corpbiz.io\/fssai-license\">Food Safety and Standard Authority of India (FSSAI)<\/a>.<\/strong> In an latest official notification issued by the authorities of Food Safety and Standard Authority of India (FSSAI), in last year of May for the modification of licenses due to the shift of their website system from <strong>Food License and Registration System (FLRS) to the Food Safety and Compliance System (FoSCoS)<\/strong><sup><a href=\"https:\/\/foscos.fssai.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup><strong>.<\/strong> Thus, in this case, the existing Food Business operator (FBO) who is having a bona fide license, needs to apply for modification of the existing license by shifting to the new system of FoSCoS for which the department has extended the time period as well. This article will delve into the detailed modification of FSSAI license and their impact on ensuring food safety standards.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#What_is_FSSAI_and_its_categories\" >What is FSSAI and its categories?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#Process_for_the_Modification_of_FSSAI_License\" >Process for\nthe Modification of FSSAI License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#Applicability_of_GST_on_legal_services\" >Applicability of GST on legal services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#Meaning_of_Advocate_Senior_Advocate_and_business_entity\" >Meaning of Advocate, Senior Advocate and business entity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#Legal_fees_and_services_under_the_subject_to_GST\" >Legal fees and services under the\nsubject to GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#Meaning_of_Reverse_Charge_Mechanism_RCM_under_GST_law\" >Meaning of Reverse Charge Mechanism (RCM) under GST law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#Latest_Update\" >Latest Update<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#GST_on_RCM\" >GST on RCM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-for-modification-of-fssai-license\/#Conclusion-2\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_FSSAI_and_its_categories\"><\/span>What is FSSAI and its categories?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Food Safety and Standards Authority of India (FSSAI) is the\nregulatory body responsible for ensuring food safety and quality standards in\nIndia. FSSAI licenses are mandatory for all food businesses operating in the\ncountry. In recent years, FSSAI has undergone various modifications to enhance\nits licensing process, making it more streamlined and effective. <\/p>\n\n\n\n<p><strong>1. Centralized Licensing\nSystem:<\/strong><\/p>\n\n\n\n<p>One significant modification of FSSAI License introduced by FSSAI is\nthe implementation of a centralized licensing system. Earlier, food businesses\nhad to obtain separate licenses from different state authorities, leading to\ninconsistencies and complexities. The centralized system streamlines the\nlicensing process by providing a single platform for license applications,\nrenewals, and modifications. It ensures uniformity and simplifies compliance\nfor food businesses operating in multiple states.<\/p>\n\n\n\n<p><strong>2. Online Application and Registration:<\/strong><\/p>\n\n\n\n<p>To enhance accessibility and convenience, FSSAI has introduced an\nonline application and registration system for obtaining licenses. Food\nbusinesses can now apply for licenses, submit necessary documents, and track\nthe progress of their applications through the FSSAI online portal. The\nmodification of FSSAI License has significantly reduced paperwork, eliminated\nmanual processes, and expedited the license issuance process.<\/p>\n\n\n\n<p><strong>3. Categorization of Food\nBusinesses:<\/strong><\/p>\n\n\n\n<p>FSSAI has categorized food businesses into three types based on\ntheir size and turnover: <\/p>\n\n\n\n<p>a) <strong>Basic Registration<\/strong>:\nThis category includes small-scale food businesses with an annual turnover\nbelow a specified threshold. They require a basic registration with FSSAI,\nwhich is a simplified process aimed at promoting ease of doing business.<\/p>\n\n\n\n<p>b) <strong>State License<\/strong>:\nMedium-sized food businesses fall under this category. They are required to\nobtain a state-level license from the respective state authorities.<\/p>\n\n\n\n<p>c) <strong>Central License<\/strong>: Large-scale food businesses, importers, and manufacturers requiring an all-India presence come under this category. They must obtain a <strong><a href=\"https:\/\/corpbiz.io\/central-fssai-license\">central license from FSSAI<\/a><\/strong>.<\/p>\n\n\n\n<p>This categorization helps determine the level of scrutiny, documentation, and compliance requirements based on the scale of operations, ensuring appropriate regulation and supervision.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"696\" height=\"380\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-8.png\" alt=\"\" class=\"wp-image-56635\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-8.png 696w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-8-300x164.png 300w\" sizes=\"(max-width: 696px) 100vw, 696px\" \/><\/figure><\/div>\n\n\n<p><strong>4. FSSAI<\/strong> <strong>Licence Renewal<\/strong> <strong>and<\/strong> <strong>Validity Periods:<\/strong><\/p>\n\n\n\n<p><strong>FSSAI<\/strong> <strong>Licence Renewal<\/strong> and <strong>Validity Periods<\/strong> to ensure timely compliance and monitoring of food businesses. The validity of a license now ranges from one to five years, depending on the category. Food businesses must renew their licenses at least 30 days before the expiry date to avoid any disruptions in their operations. This modification ensures regular assessments of food safety practices and encourages businesses to maintain high standards continuously.<\/p>\n\n\n\n<p><strong>5. Regulatory Compliance\nand Audit:<\/strong><\/p>\n\n\n\n<p>FSSAI has strengthened its regulatory compliance measures by\nconducting regular audits and inspections of licensed food businesses. The authority\nhas increased its focus on food safety training and capacity building to\nimprove compliance levels across the industry. The modifications emphasize the\nneed for food businesses to adhere to hygiene and safety standards, maintain\nproper record-keeping, and implement robust quality control measures.<\/p>\n\n\n\n<p><strong>6. Penalty and\nEnforcement:<\/strong><\/p>\n\n\n\n<p>FSSAI has enhanced penalty provisions and enforcement mechanisms to\ndeter non-compliance and ensure strict adherence to food safety standards.\nNon-compliant businesses can face penalties, suspension, or cancellation of\nlicenses, depending on the severity of the violation. These modifications serve\nas a strong deterrent and foster a culture of compliance among food businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_for_the_Modification_of_FSSAI_License\"><\/span>Process for\nthe Modification of FSSAI License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To modify your FSSAI (Food Safety and Standards Authority of India)\nlicense, you need to follow a step-by-step process. Here&#8217;s a general outline of\nthe process for the modification of FSSAI License:<\/p>\n\n\n\n<p>1. <strong>Determine the type of modification of FSSAI License required:<\/strong>\nIdentify the specific changes you need to make to your FSSAI license. It could\nbe related to changes in the business name, address, contact details, category\nof the license, scope of operations, or any other relevant information.<\/p>\n\n\n\n<p>2. <strong>Review FSSAI guidelines<\/strong>: Visit the FSSAI website or contact their regional office to review the guidelines and regulations for modifying your license. Familiarize yourself with the necessary documents and procedures to ensure compliance.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-5.png\" alt=\"\" class=\"wp-image-56632\" width=\"352\" height=\"235\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-5.png 361w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-5-300x200.png 300w\" sizes=\"(max-width: 352px) 100vw, 352px\" \/><figcaption class=\"wp-element-caption\"><br><\/figcaption><\/figure><\/div>\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"426\" height=\"216\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-6.png\" alt=\"\" class=\"wp-image-56633\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-6.png 426w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/05\/image-6-300x152.png 300w\" sizes=\"(max-width: 426px) 100vw, 426px\" \/><\/figure><\/div>\n\n\n<p>3. <strong>Gather required documents<\/strong>: Collect all the documents needed to support your modification request. The specific documents may vary depending on the nature of the modification, but common documents include:<\/p>\n\n\n\n<ul>\n<li>FSSAI license application form (Form-B)<\/li>\n\n\n\n<li>ID proof and address proof of the proprietor\/partners\/directors<\/li>\n\n\n\n<li>Proof of change (e.g., new address proof, name change certificate)<\/li>\n\n\n\n<li>Affidavit stating the reason for modification of FSSAI License<\/li>\n\n\n\n<li>Supporting documents relevant to the modification (e.g., updated floor plan, partnership deed, memorandum of association)<\/li>\n<\/ul>\n\n\n\n<p>4<strong>. Prepare the application<\/strong>: Fill out the application form (Form-B)\naccurately and completely. Ensure that all the required information is\nprovided, and double-check for any errors or missing details. Attach the\nsupporting documents along with the application form.<\/p>\n\n\n\n<p>5. <strong>Submit the application<\/strong>: Visit the nearest FSSAI regional office or\nthe designated online portal, depending on the mode of submission specified by\nFSSAI. Submit your application along with the required documents. If applying\nonline, follow the instructions for uploading the scanned copies of the\ndocuments.<\/p>\n\n\n\n<p>6. <strong>Pay the modification fees<\/strong>: Pay the applicable modification fees as\nspecified by FSSAI. The fee may vary depending on the type and extent of\nmodification. Ensure that you have the necessary payment details and make the\npayment through the prescribed mode (online or offline) as per FSSAI\nguidelines.<\/p>\n\n\n\n<p>7. <strong>Track the application<\/strong>: Keep track of your application&#8217;s progress by\nusing any tracking mechanism provided by FSSAI. This may include an application\nnumber or reference ID that allows you to monitor the status of your\nmodification request.<\/p>\n\n\n\n<p>8. <strong>Verification and inspection<\/strong>: Depending on the nature of the\nmodification, FSSAI may conduct an inspection or verification process to ensure\ncompliance with food safety regulations. Cooperate with the officials and\nprovide any additional information or documentation they require.<\/p>\n\n\n\n<p>9. <strong>Approval and issuance of modified license<\/strong>: Once your modification\nof FSSAI License request is processed and approved, you will receive the\nmodified FSSAI license. It will reflect the updated information or changes as\nrequested.<\/p>\n\n\n\n<p>It&#8217;s important to note that the\nspecific steps and requirements may vary depending on your location and the\nnature of the modification. It is advisable to consult the official FSSAI\nwebsite or contact their regional office directly for the most accurate and\nup-to-date information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The modification of FSSAI license have brought significant improvements to the food safety landscape in India. The introduction of a centralized licensing system, the online application process, the categorization of food businesses, revised validity periods, strengthened compliance measures, and strict enforcement mechanisms have collectively enhanced the effectiveness of FSSAI&#8217;s regulatory framework. These modifications not only streamline the licensing process but also encourage food businesses to prioritize food safety and maintain high standards throughout their operations. Ultimately, these efforts contribute to safeguarding.<\/p>\n\n\n\n<p>Legal services rendered by an individual attorney, a law company, or senior attorneys are subject to an 18 per cent tax under the Central Goods and Services Tax Act. Legal services refer to products and services offered by Advocates and Lawyers in regard to consultation, advice, or help in any area of law, as well as representative services in front of any court. Under the GST, legal services are given particular consideration.<\/p>\n\n\n\n<ul>\n<li>Legal services are defined under the\nnotification number&#8217;s entry 2 (zm). 12\/2017 &#8211; Central tax (rate), dated June\n28, 2017, which is reproduced below:<\/li>\n\n\n\n<li>Legal services include representational services\nbefore any court, tribunal, or authority and encompass any service related to\nguidance, consultancy, or help in any area of law in any way.<\/li>\n<\/ul>\n\n\n\n<p>Many of us have taken some legal aid but have you ever\nthought about the GST levied on it? Through this article, the author will\nelaborate on the procedure of GST on legal services that have been amended in\nthe Indian indirect taxation system. Read on to learn more about the\napplicability, exemption, and GST rate on legal services offered by an\nadvocate(s) or law firm(s) in India. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_GST_on_legal_services\"><\/span><strong>Applicability of GST on legal services<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any legal services\nprovided by a lawyer or law firm to a company with annual aggregate revenue of\nat least 20 lakhs of Indian rupees are subject to a GST charge. GST on legal\nservices provided by a senior advocate to another advocate or firm of advocates\nmust also be paid.<\/p>\n\n\n\n<ul>\n<li>Since\nthe passage of the GST law, the taxation of legal services has remained\nconstant. Attorneys and law firms are exempt from the reverse charges.<\/li>\n\n\n\n<li>All\nindirect taxes have been consolidated into a single levy under the Central\nGoods and Service Tax Act of 2017 (CGST Act) and other GST laws.<\/li>\n\n\n\n<li>Section\n7 of the CGST Act deals with charges when the term &#8220;supply&#8221; is\nconsidered to include all forms of supplying goods or services in exchange for\nmoney or both in order to further a business.<\/li>\n\n\n\n<li>Article\n279A of the Indian Constitution states that the GST Council determines the tax\nrate for legal fees for legal services. Exclusions from the prior system were\ncarried over.<\/li>\n<\/ul>\n\n\n\n<p>Businesses operating in general category states, such as the Northeast that generate up to INR 20 lakh or INR 10 lakh in revenue are exempt from paying taxes.<\/p>\n\n\n\n<p>Numerous changes\nhave taken place since the government introduced the GST in July 2017. For\nlegal services subject to GST on legal services, senior advocates are listed in\na separate category on the reverse charge list. They fall under the category of\nservices for reverse charges.<\/p>\n\n\n\n<p>Under the Reverse\nCharge provision (RCM) of the GST laws, all legal services, whether offered by\na law firm or an individual, are liable for payment. Since all of them would be\nexempted from GST application for legal services, no other output produced by\nlaw firms or attorneys who offer legal services is subject to GST liability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Advocate_Senior_Advocate_and_business_entity\"><\/span>Meaning of Advocate, Senior Advocate and business entity<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Understanding what the terms\n&#8220;advocate,&#8221; &#8220;senior advocate,&#8221; and &#8220;business\nentity&#8221; imply in the context as mentioned earlier is crucial:<\/p>\n\n\n\n<ul>\n<li>Advocate<\/li>\n<\/ul>\n\n\n\n<p><strong>The definition of <\/strong>Advocate states:<\/p>\n\n\n\n<p>&nbsp;The term has been\ndefined under <em>Section 2(1)(a)<\/em>; the\nprovision says that &#8216;An advocate is someone who has entered in any roll under\nthe provisions of this Act.&#8217;<\/p>\n\n\n\n<ul>\n<li>Senior Advocate<\/li>\n<\/ul>\n\n\n\n<p><strong>The definition of Senior Advocate states:<\/strong><strong><\/strong><\/p>\n\n\n\n<p>There are two kinds of advocates: senior and other\nadvocates. If the Supreme Court or a High Court determines that an advocate\nmerits such distinction due to his ability to stand at the Bar or unique\nknowledge or expertise in law, the designation of senior Advocate may be made\nwith the Advocate&#8217;s assent. Senior solicitors must abide by any limitations on\ntheir practice that the Bar Council of India may impose in the best interests\nof the legal community. For this section, a Supreme Court attorney who was a\nsenior attorney before the designated day is considered a senior attorney.<\/p>\n\n\n\n<ul>\n<li>Business Entity<\/li>\n<\/ul>\n\n\n\n<p>The notification states that a business entity means any\nperson carrying out business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal_fees_and_services_under_the_subject_to_GST\"><\/span><strong>Legal fees and services under the\nsubject to GST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As of June 28, 2017, the following legal\nservices are defined under entry 2 (zm) of notification no. 12\/2017 &#8211; Central\ntax (rate): Legal services include representational services before any court,\ntribunal, or authority and include any services linked to advising, consulting,\nor help in any area of law, in any way.\u201d<\/p>\n\n\n\n<p>Furthermore, it is stated that notification\nNo. 13\/2017-Central Tax (Rate), dated June 28, 2017 (Serial No. 2), is\napplicable. For example, it states that the following services fall under the\npurview of the reverse charge mechanism: <\/p>\n\n\n\n<p>&#8220;Services supplied by an individual\nadvocate(s), or a senior advocate(s), by way of representational services\nbefore any Court of Law, Tribunal, or Authority in India, directly or\nindirectly, to any business entity located in the taxable territory of India. <\/p>\n\n\n\n<p>The objective was to adapt the indirect tax system to all areas of economic activity. Legal services that were taxable and came into the &#8220;legal consultancy services&#8221; category were subject to <strong><a href=\"https:\/\/corpbiz.io\/tax-filing\">service tax<\/a><\/strong>.<\/p>\n\n\n\n<p>The service tax law put into effect the\nNegative List Regime in 2012. Any legal services rendered by an individual or a\nlaw firm are expressly exempt from the GST by the government. However, when the\nlevy is applied on a reverse charge basis, there is no exemption from the\nrequirement to pay service tax. Alternatively put, the customer or service user\nwas in charge.<\/p>\n\n\n\n<p>Thus, no registration was required for lawyers and law offices back then. However, the GST on law firms and on all the legal services must follow the 2017 GST system, which was recently established.<\/p>\n\n\n\n<p>Does that indicate that lawyers who work for\nbusinesses rather than legal firms must follow the rules of the reverse charge\nmechanism? A person must pay GST even if they are not currently practising law.<\/p>\n\n\n\n<p>Previously, neither service providers nor\nrecipients were required to pay taxes. If you hired a non-attorney to perform\nsimilar services, it was taxed. However, attorney and law firm fees are subject\nto GST, even though they are exempt from paying it. <\/p>\n\n\n\n<p>Therefore it is required by a lawyers to first obtain <strong><a href=\"https:\/\/corpbiz.io\/gst-registration\">GST registration<\/a><\/strong> before beginning a private practice or acting for themselves. Currently, the GST does not necessitate the registration of legal professions. Furthermore, since all taxes combine into one, you are exempt from paying professional taxes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Reverse_Charge_Mechanism_RCM_under_GST_law\"><\/span>Meaning of Reverse Charge Mechanism (RCM) under GST law<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Reverse Charge\nMechanism (RCM) is a procedure that allows the recipient to pay the GST rather\nthan the supplier. In this instance, the recipient\/receiver, instead of the\nsupplier, is responsible for paying the tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Latest_Update\"><\/span>Latest Update<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>19th December 2022<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The Karnataka GST AAR\nreleased the decision for M\/s Yaadvi Scientific Solutions Private Limited. It\nwas determined that reimbursements for expenses incurred by employees on behalf\nof the organisation are not taxable under the GST Act 2017 since they fall\nunder Schedule II. <\/p>\n\n\n\n<ul>\n<li><strong>09th December 2022<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>GST AAR:<\/strong>&nbsp;RCM is not applicable to director\nreimbursements for costs incurred on the company&#8217;s behalf.<\/p>\n\n\n\n<p>The statement\n&#8220;Ignore prompt on liability for inward supplies attracting reverse charge\nin Table-3.1(d).&#8221;&nbsp;<\/p>\n\n\n\n<p>&nbsp;In accordance\nwith the GST acts and revisions, the government has finally implemented the\nreverse charge mechanism as of February 01, 2019. Also, to note that the\nexemptions up to INR 5000 will be effectively eliminated.<\/p>\n\n\n\n<p><strong>In the following scenarios, the Reverse\nCharge Mechanism is applicable:<\/strong><\/p>\n\n\n\n<ul>\n<li>Imports<\/li>\n\n\n\n<li>Purchase\nfrom an unregistered dealer<\/li>\n\n\n\n<li>Supply\nof notified goods and services<\/li>\n<\/ul>\n\n\n\n<p>This flips the\nsituation around because taxes must be paid by the person receiving the goods\nand services. A GST must be paid on behalf of the recipient if they are making\npurchases from unregistered sellers. The supplier needs to give the recipient a\npayment voucher. As per the Section 2(94) of the CGST Act of 2017, the\nbeneficiary must be registered.<\/p>\n\n\n\n<p>According to\nSection 2(98) of the CGST Act of 2017, a &#8220;Reverse-Charge&#8221; is when the\nrecipient of a supply of goods or services or both is responsible for paying\ntax rather than the supplier of such goods or services or both.<\/p>\n\n\n\n<p>As mentioned under\nsub-section (3) and sub-section (4) of Section 9 or<\/p>\n\n\n\n<p>under sub-section\n(3) and subsection (4) of Section 5 of the Integrated Goods and Services Tax\nAct of 2017.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_on_RCM\"><\/span><strong>GST on RCM<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When an attorney or law firm enters into a\ncontract for legal services with another attorney or law firm, the RCM on legal\nservices is also in effect.<\/p>\n\n\n\n<p>In accordance with the &#8220;Goods and\nServices Tax and Legal Services&#8221; mechanism, the recipient is liable for\npaying the taxes owed as a result of the reverse charge. The GST on legal\nservices received by the client must be paid and deposited directly to the\ngovernment, per Section 9(3) of the Central Goods and Services Tax Act, 2017. <\/p>\n\n\n\n<p>Solicitors must first register to provide\nlegal services under the GST system&#8217;s reverse charge procedure. Similar to\nother service providers with an aggregate turnover of more than Rs. 20 lakhs,\nlegal service fees are subject to GST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion-2\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is often believed that law firms and individual Advocates are exempt from the GST on legal services, but legal services rendered by an individual attorney, a law company, or senior attorneys are subject to an 18 per cent tax under the Central Goods and Services Tax Act. Legal services refer to products and services offered by Advocates and Lawyers in regard to consultation, advice, or help in any area of law, as well as representative services in front of any court. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/what-is-the-rules-and-procedure-to-surrender-a-fssai-license\/\">What Is The Rules And Procedure To Surrender A FSSAI License?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FSSAI stands for the Food Safety and Standard Authority of India (FSSAI). In an latest official notification issued by the authorities of Food Safety and Standard Authority of India (FSSAI), in last year of May for the modification of licenses due to the shift of their website system from Food License and Registration System (FLRS) [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":56656,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[150],"tags":[3619],"acf":{"service_id":"318"},"authorName":"Soumyadipa Banik","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-66.jpg","authorDescription":"Soumyadipa is a legal professional and has completed her Masters (L.L.M.) in Business Law from Amity University. She is an aspiring content writer and legal researcher with more than a year experience. She have earlier worked for Startup companies and written business and legal articles, blogs and website content. She is good at presenting complex issues in organized, easy-to-understand terms and committed to provide highly persuasive content.","postViews":3001,"readingTime":10,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56623"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=56623"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56623\/revisions"}],"predecessor-version":[{"id":61704,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56623\/revisions\/61704"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/56656"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=56623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=56623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=56623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}