Question 26:Wether Co-oprative (U) Thrift & Credit Society ( Not a Co-operative Bank ), which is registered with `Office of Registrar of Co-operative societies, Govt. of NCT of Delhi` is liable to registered with GST Act as its turnover is less than the thereshold limit i.e. 20 Laksh PA (Includes Interest on borrowing of members, Penal interest, Loan Processing Fee etc. This Co-operative (U) Thrift & Credit Society taking services of a Lawyer and Fee of Lawyer booked in expenses. Such expenses are cover u/s 9(3) and liable to pay GST in RCM.

Answer Notification No. 12/2017 Central Tax (Rate) vide s. no. 45 exempts the services provided by

(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to-

(i) an advocate or partnership firm of advocates providing legal services;

(ii) any person other than a business entity; or

(iii) a business entity with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the case of special category states) in the preceding financial year;

(iv) the Central Government, State Government, Union territory, local authority,
Governmental Authority or Government Entity

In your case, as the turnover is less than 20 lakhs, therefore the service received by you from lawyer is exempt. Thus the liability to pay reverse charge does not arise and you are not liable to take registration under GST.(Reply dt. 06/07/2018)