Management consultants, accountants, marketers and other independent professionals are 18% service providers whose GST is mostly straightforward — with a few reverse-charge and export nuances worth knowing so you neither over-charge clients nor miss a liability.
Rate, threshold and registration
Professional and consultancy services are taxable at 18%. Registration is mandatory once turnover crosses ₹20 lakh in a financial year. Below that it’s voluntary — though company clients often prefer registered vendors so they can claim input credit, which can make early registration worthwhile.
Reverse-charge points to know
A few professional situations run on reverse charge: for example, services by an advocate to a business, or a director’s services to their company, are typically taxed in the recipient’s hands. If you engage such services, you may owe RCM; if you provide certain of them, your client accounts for the tax. Knowing where you sit avoids both double-charging and missed liability.
Overseas clients and input credit
- Consultancy exported to overseas clients can be zero-rated under an LUT
- Registration lets you claim input credit on software, subscriptions and office costs
- Correct SAC codes keep invoices and returns consistent
- Reimbursements (pure agent vs part of your fee) must be treated correctly