--- title: "New GST on Consultancy Services 2026: 18% Rate on Management, IT" description: "New GST rate on consultancy services in 2026 is 18% on management, legal, IT and HR consulting. Use Busy to auto-apply the correct GST on every invoice." canonical: "https://busy.in/gst-rates/consultancy-services/" author: "Jagdish Prasad" published: "2025-05-15T12:12:11.000Z" category: "GST Rates" --- - 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. # 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 professional services**, including rates and classifications by profession. ## **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 | **Explore a Free Demo of –** [**Best Inventory Management Software For Small Business**](https://busy.in/accounting-software/inventory-management/) Live Demo Available Today ## Track TCS Deductions from Consultancy Payments Automatically Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **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**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) . ## **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. **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) ## **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. ## About the author **Jagdish Prasad** 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. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)