GST on Consultancy Services in India
- Consultancy services in India are generally taxable under GST, with 18% GST applicable to most consultancy and professional services.
- Different consultancy services, such as legal, engineering, software, and other professional services, are classified under applicable SAC codes with the relevant GST rate.
- Businesses can claim eligible Input Tax Credit (ITC) on consultancy expenses used for business purposes, subject to GST conditions.
- Exported consultancy services can qualify as zero-rated supplies, allowing eligible businesses to claim benefits such as refund of accumulated ITC.
- GST registration requirements for consultants and freelancers depend on applicable turnover limits, State rules, and other GST registration provisions.
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
The consultancy services GST rate is generally 18% for taxable consultancy and professional advisory services. The GST on professional consultancy services depends on the nature of service supplied and applicable SAC classification.
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 |
Service Type
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Applicable SAC
Important Note
Service Type
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Applicable SAC
Important Note
Service Type
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Applicable SAC
Important Note
Service Type
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Applicable SAC
Important Note
Service Type
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Applicable SAC
Important Note
Service Type
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Applicable SAC
Important Note
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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.
