What is the GST rate on consultancy services in India?

The GST on consultancy services in India is 18% for most professional services.

Are all types of consultancy services taxable?

Yes, except medical consultancy by individual doctors and a few government-notified exemptions.

What is the GST rate on software consultancy services?

It is 18% , under SAC Code 998313.

Can freelancers offering consultancy charge GST?

Yes, if their annual turnover exceeds ₹20 lakhs (₹10 lakhs in special category states), they must register for GST and charge 18% .

Are consultancy services to foreign clients taxed?

No. Such services are zero-rated exports under GST and qualify for refund of input tax.

GST on Consultancy Services in India

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 consultancy services, including rates and classifications by profession.

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GST Rates

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

The standard consultancy services gst rate is:

18% GST

This rate applies to almost all types of consultancy, regardless of whether it’s a one-time consultation or a long-term professional service.

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New GST Rate on Consultancy Services in India

The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for consultancy services (no compensation cess).

New GST on Different Types of Consultancy Services

Service Type	New GST Rate	Applicable SAC
Legal consultancy	18%	998213
Medical consultancy (non-doctors)	18%	998399
Software consultancy services	18%	998313
Management consultancy services	18%	998311
Engineering consultancy services	18%	998346
Architectural consultancy services	18%	998321

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Old GST on Different Types of Consultancy Services

(Old GST Rates – Applicable Until 21st September)

Service Type	GST Rate	Applicable SAC
Legal consultancy	18%	998213
Medical consultancy (non-doctors)	18%	998399
Software consultancy services	18%	998313
Management consultancy services	18%	998311
Engineering consultancy services	18%	998346
Architectural consultancy services	18%	998321

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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 .

Jagdish Prasad

Chartered Accountant

MRN No.: 433417

City: Delhi

Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules.

Frequently Asked Questions

What is the GST rate on consultancy services in India?

The GST on consultancy services in India is 18% for most professional services.
Are all types of consultancy services taxable?

Yes, except medical consultancy by individual doctors and a few government-notified exemptions.
What is the GST rate on software consultancy services?

It is 18%, under SAC Code 998313.
Can freelancers offering consultancy charge GST?

Yes, if their annual turnover exceeds ₹20 lakhs (₹10 lakhs in special category states), they must register for GST and charge 18%.
Are consultancy services to foreign clients taxed?

No. Such services are zero-rated exports under GST and qualify for refund of input tax.

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