GST on Consulting Services in India (Rate, SAC Code & Invoice)
GST on consulting services applies at 18% for all management, business, and professional consulting provided to Indian clients. This guide covers SAC codes, invoice format, tax breakdown, and when reverse charge applies.
By Arjun Sharma· GST & Tax Compliance Specialist···Reviewed for GST accuracy
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GST Rate on Consulting Services
All consulting and management services attract GST at 18% (CGST 9% + SGST 9% for intra-state; IGST 18% for inter-state). This covers business management consulting, strategy advisory, IT consulting, HR consulting, financial advisory, operations consulting, and similar professional services. The rate has been 18% since GST inception in 2017 and has not changed since. Consulting services do not qualify for the 5% or 12% slabs — 18% is the uniform rate regardless of the nature of advice provided.
SAC Code for Consulting Services
SAC Code
Service Description
GST Rate
998311
Management consulting & advisory services
18%
998312
Business process consulting
18%
998313
IT consulting & strategy
18%
998314
HR & organizational consulting
18%
998315
Financial consulting (non-CA services)
18%
998316
Operations & supply chain consulting
18%
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A strategy consultant in Bengaluru bills a Delhi-based FMCG company ₹1,50,000 for a 3-month market entry advisory. Since this is inter-state (Karnataka → Delhi), IGST applies. Invoice breakdown: Taxable value ₹1,50,000 + IGST 18% = ₹27,000. Total invoice value: ₹1,77,000. The SAC code 998311 must appear on the invoice. The Delhi company can claim ITC of ₹27,000 against its own GST liability.
Reverse Charge on Consulting Services
Most consulting services are under forward charge — the consultant collects and pays GST. However, if you hire an unregistered consultant and pay them more than ₹5,000 in a day, reverse charge mechanism (RCM) applies. The registered business receiving the service must self-invoice, pay GST, and then claim ITC. This is common when companies hire individual subject matter experts who are not GST-registered.
Export of Consulting Services — Zero-Rated GST
If a consultant in India provides services to a foreign client and receives payment in foreign currency, it qualifies as export of services — zero-rated under GST. You either export under a Letter of Undertaking (LUT) without paying tax, or pay IGST 18% and claim a refund. The conditions for zero-rating: supplier in India, recipient outside India, place of supply outside India, payment received in foreign exchange, and services not consumed in India.
FAQs
What is the GST rate on management consulting?
Management and business consulting services attract 18% GST. SAC code 998311 applies to most general management consulting engagements.
Do freelance consultants need to register for GST?
Yes, if annual consulting revenue exceeds ₹20 lakh (₹10 lakh in special category states). Inter-state supply of consulting services requires mandatory registration regardless of turnover.
Can a consulting firm claim ITC on expenses?
Yes. GST paid on office rent, software subscriptions, professional development, internet, and other business inputs can be claimed as Input Tax Credit to offset outward GST liability.
Is consulting to government bodies taxable under GST?
Generally yes — consulting provided to government departments attracts 18% GST. However, certain pure services to state or central government may be exempt. Check Notification 12/2017-CT(Rate) for specific exemptions.
Why Businesses Stop Using Excel for GST Invoices
Manual GST calculation mistakes
One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.
Slow invoice creation
Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.
Formatting breaks on every device
Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.
No easy sharing or payment link
Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.
Incorrect tax type (IGST vs CGST+SGST)
Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.
Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.
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