GST on Consultancy Services in India
Quick Summary
- Consultancy services in India are taxable under GST, with a standard rate of 18% applicable to most services.
- Different types of consultancy services, such as legal, medical (non-doctors), software, and engineering, all fall under specific SAC codes with an 18% GST rate.
- Businesses can claim Input Tax Credit (ITC) for expenses like office rent and equipment but not for personal use expenses.
- Exported consultancy services are zero-rated, meaning no GST is charged, and businesses can claim a refund of the Input Tax Credit.
- Freelancers must register for GST and charge 18% if their annual turnover exceeds ₹20 lakhs, with different thresholds for special category states.
From legal advice to software support, consultancy services are a major part of India’s service sector. Under the Goods and Services Tax regime, most consultancy services are taxable. In this guide, we break down the gst on professional services, including rates and classifications by profession.
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What Are Consultancy Services Under GST?
Consultancy services include any professional advice, guidance, or expertise offered in exchange for a fee. These services are considered taxable under GST and fall under SAC Code 9983 or specific subcategories based on the industry.
GST Rate on Consultancy Services in India
Consultancy services in India generally attract 18% GST. This includes most taxable professional and advisory services such as software consultancy, management consultancy, engineering consultancy, and architectural consultancy. For these services, the practical GST position remains 18% both before and after 22 Sep 2025.
New GST on Consultancy Services
| Service Type | New GST Rate (After 22 Sep 2025) |
Old GST Rate (Before 22 Sep 2025) |
Applicable SAC | Important Note |
|---|---|---|---|---|
| Software consultancy services | 18% | 18% | 998313 | Generally taxable at standard service rate |
| Management consultancy services | 18% | 18% | 998311 | Generally taxable at standard service rate |
| Engineering consultancy services | 18% | 18% | 998346 | Generally taxable at standard service rate |
| Architectural consultancy services | 18% | 18% | 998321 | Generally taxable at standard service rate |
| Legal consultancy | Generally 18% | Generally 18% | 998213 | Often covered under reverse charge when supplied by advocate or law firm to a business entity |
| Medical consultancy | Not uniformly 18% | Not uniformly 18% | 9983 or 9993 depending on service | Genuine health care services are generally exempt |
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(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) Generally 18%
(Before 22 Sep 2025) Generally 18%
(After 22 Sep 2025) Not uniformly 18%
(Before 22 Sep 2025) Not uniformly 18%
Input Tax Credit (ITC) for Consultancy Services
- Claim ITC on office rent, equipment, internet bills, and software tools
- Issue GST invoices with correct SAC codes
- File monthly or quarterly returns based on turnover
However, ITC is not allowed for personal use expenses. Learn more about claim Input Tax Credit .
Export of Consultancy Services
- Consultancy services exported are zero-rated under GST
- No GST is charged on the invoice
- You can claim a refund of Input Tax Credit
To qualify, payment must be received in foreign currency and the recipient must be located outside India.
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Conclusion
Understanding the correct GST on consultancy services helps professionals, agencies, and clients manage taxation correctly and stay compliant with billing and filing requirements. For more info, refer to our guide on GST returns.
