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GST Rate Guide · FY 2025-26

GST on Consulting Services in India —
18%, Export or RCM?

The GST rate on management, IT, legal, engineering and professional consultancy, how export of services is zero-rated, when RCM applies to foreign consultants and advocates, and how businesses claim full ITC.

Updated for FY 2026-27 GST Expert Reviewed Consultants & Professionals

Talk to a GST Expert See rate table

18%Consulting rate

0%Export (zero-rated)

18% RCMForeign & advocate

₹20LRegistration threshold

Quick Answer

Consulting and professional services in India are taxed at 18% GST under SAC 9983 (management, IT, engineering, business advisory) and SAC 9982 (legal, accounting, tax). This applies to individuals, firms, LLPs and companies alike. Export of consulting to a client abroad (payment in forex, Section 2(6) IGST conditions met) is a zero-rated supply — 0% with a LUT, ITC preserved. Consulting from a foreign consultant, and legal services by an individual advocate, are taxed at 18% under Reverse Charge (the recipient self-pays). Registration is required once turnover crosses ₹20 lakh.

Consulting / professional 18%

Export of service Zero-rated

Import (RCM) 18%

Turnover < ₹20L Nil

At a glance

GST on Consulting — Decision Table

The GST rate, applicable SAC code and who pays for every common consulting and professional-services scenario.

Type of Supply	SAC	Rate	Who Pays	ITC
Management & strategy consulting	9983	18%	Consultant (forward charge)	Yes
IT / technology advisory	998313	18%	Consultant (forward charge)	Yes
Engineering / technical consulting	9983	18%	Consultant (forward charge)	Yes
HR / financial / business advisory	9983	18%	Consultant (forward charge)	Yes
Tax / accounting (CA firm)	9982	18%	Firm (forward charge)	Yes
Legal services — law firm / LLP	9982	18%	Firm (forward charge)	Yes
Legal services — individual advocate	9982	18%	Recipient (RCM)	Yes
Export of consulting (client abroad)	9983	Zero-rated	Nil under LUT	Yes
Import from foreign consultant	9983	18%	Recipient (RCM)	Yes
Consultant below ₹20L (unregistered)	—	Nil	—	—

SAC 9983 = other professional, technical & business services; SAC 9982 = legal & accounting. Professional-consulting rates were not changed by the GST 2.0 rationalisation (eff. 22 September 2025). Confirm on the official GST portal before invoicing.

The 18% rate

Which Consulting Services Attract 18% GST?

There is no concessional rate or general exemption for private-sector consulting. Whether you are an individual consultant, a partnership, an LLP or a company, professional and advisory services attract a flat 18% (9% CGST + 9% SGST intra-state, or 18% IGST inter-state).

Management, strategy & business consulting — SAC 9983.
IT, software architecture, ERP & cybersecurity advisory — SAC 998313.
Engineering, technical & environmental consulting — SAC 9983.
HR, financial and market-research advisory — SAC 9983.
Legal, tax & accounting — SAC 9982 (law firms and CA firms charge 18%; individual advocates fall under RCM).

TaxClue Insight

The 18% headline rate is rarely the real cost. When your client is a GST-registered business, it recovers the full 18% as Input Tax Credit — so the net cost of your fee to them is the base amount, not the GST-inclusive figure. Pricing conversations get easier once B2B clients understand this.

Not sure which SAC or rate applies to your service?

Get My GST Rate →

High-intent · export of services

Export of Consulting — Zero-Rated with LUT

When you consult for a client outside India and the transaction meets the export-of-services test under Section 2(6) of the IGST Act, it is a zero-rated supply — you charge 0% GST yet keep the input-tax credit on your costs.

Foreign clientRecipient located outside India

→

File LUTExport without paying IGST

→

Paid in forexConsideration received in convertible currency

→

Zero-rated0% GST · ITC / refund preserved

All five conditions of Section 2(6) IGST must hold: (1) supplier in India, (2) recipient outside India, (3) place of supply outside India, (4) payment received in convertible foreign exchange (or INR where RBI permits), and (5) supplier and recipient are not merely establishments of the same person.

Scenario	GST Treatment	Key Requirement
Consulting exported to a foreign company	Zero-rated · 0%	LUT filed; payment in forex; FIRC from bank
Consulting to a SEZ unit in India	Zero-rated · 0%	LUT filed; SEZ endorsement
Delivered remotely (video / email) to client abroad	Zero-rated · 0%	All Section 2(6) conditions met
NRI / foreign client physically served in India	18%	Place of supply is India — GST applies

Without a LUT you must pay 18% IGST first and claim a refund later — filing a Letter of Undertaking avoids blocking working capital.

Exporting consulting services? Get your LUT and refund cycle handled.

Get Export GST Help →

Reverse charge

RCM on Foreign Consultants & Advocates

For two common consulting situations, the recipient — not the supplier — pays the 18% GST under the Reverse Charge Mechanism, then generally claims it back as ITC in the same return.

18%

Import of consulting (foreign consultant)

NRI / foreign firm supplies to an Indian registered business
Indian recipient self-pays 18% IGST under RCM
Notification 10/2017-IGST
Reported in GSTR-3B Table 3.1(d)
ITC available — usually tax-neutral

vs

18%

Legal services by an individual advocate

Advocate / advocate firm supplies to a business entity
Business recipient pays 18% under RCM
Notification 13/2017-CT(R)
Law firms & LLPs charge under forward charge instead
ITC available to the recipient

RCM is not optional

A registered business that pays a foreign consultant or an individual advocate must self-assess and deposit the 18% GST even if the supplier issued no GST invoice. Missing this is a frequent audit finding. The good news: where the input relates to taxable business activity, the same tax is recoverable as ITC, so the net effect is usually zero.

Paying an overseas consultant or an advocate? Get your RCM position checked.

Talk to a GST Expert →

Credit & registration

ITC on Consulting Fees & When to Register

Consulting is not a blocked credit under Section 17(5) of the CGST Act, so a business receiving consulting can claim full Input Tax Credit of the 18% paid, provided the four ITC conditions are met.

Valid tax invoice with GSTIN & SAC
Service actually received
Tax reflected in your GSTR-2B
Your GSTR-3B filed for the period
Used for taxable business activity
Not a personal / exempt-supply purpose

The Section 17(5) blocked list covers personal-use motor vehicles, food & beverages, club memberships, employee health insurance and civil-works contracts — not professional advisory. Where consulting relates to exempt or non-business supplies, a proportionate reversal under Rule 42 may apply.

Threshold

GST Registration for Consultants

₹20 lakh/year aggregate turnover — most states (₹10 lakh for special-category states).
Inter-state supply of consulting — registration compulsory from the first rupee (Section 24).
Supply through an e-commerce operator — registration mandatory regardless of turnover.
The 6% service composition option (up to ₹50 lakh) suits few consultants — no ITC, no tax invoice, no inter-state or export supply.

Government sourcesRates & notifications: gst.gov.in · CBIC rate finder: cbic-gst.gov.in · Import of service RCM: Notification 10/2017-IGST(R) · Advocate RCM: Notification 13/2017-CT(R) · Export of services: Section 2(6) & Section 16, IGST Act 2017 · ITC conditions: Section 16, blocked credits: Section 17(5), CGST Act 2017

People also ask

Frequently Asked Questions

Rate & Scope

What is the GST rate on consultancy services?

Consultancy and professional services in India attract GST at 18% (9% CGST + 9% SGST intra-state, or 18% IGST inter-state). This applies under SAC 9983 for management, IT, engineering and business consulting, and SAC 9982 for legal, tax and accounting services. There is no concessional rate or general exemption for private-sector consulting, and the rate is the same whether the consultant is an individual, a firm, an LLP or a company.

What is the SAC code for consulting services?

Most professional consulting falls under SAC 9983 — other professional, technical and business services — which covers management, strategy, engineering, HR, financial and environmental consulting. IT and technology advisory is commonly SAC 998313. Legal, tax and accounting services fall under SAC 9982. All of these are taxed at 18%.

Is GST 18% on all professional services?

For practical purposes, yes — management, IT, HR, engineering, financial, legal, tax and accounting advisory all attract 18% GST. A handful of specific exemptions exist (for example certain services to government bodies or international organisations under prescribed conditions), but general B2B and B2C consulting is uniformly 18%.

Is GST applicable on freelance consulting income?

Yes, if the freelancer is registered or liable to register. A freelance consultant charges 18% GST once turnover crosses ₹20 lakh (₹10 lakh in special-category states), or from the first rupee if making inter-state supplies or supplying through an e-commerce platform. Export of freelance consulting to clients abroad is zero-rated.

Registration

Do consultants need GST registration?

A consultant must register for GST once aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in special-category states). Registration is compulsory regardless of turnover if the consultant makes any inter-state supply of services or supplies through an e-commerce operator. Below the threshold and supplying only within the state, registration is voluntary.

Is the composition scheme good for consultants?

Rarely. Service providers can opt for the composition scheme up to ₹50 lakh turnover at a flat 6% (3% CGST + 3% SGST), but composition dealers cannot charge GST to clients, cannot claim ITC, cannot issue tax invoices and cannot make inter-state or export supplies. For most consultants — especially those with cross-state or foreign clients — regular registration is more suitable.

Export & Zero-Rating

Is GST applicable on export of consulting services?

Export of consulting services is a zero-rated supply — 0% GST — provided the export-of-services conditions of Section 2(6) of the IGST Act are met: recipient outside India, place of supply outside India, and payment received in convertible foreign exchange. With a Letter of Undertaking (LUT) you export without paying IGST while retaining input-tax credit; without a LUT you pay 18% IGST and claim a refund.

Do I need a LUT to export consulting services?

A LUT is not strictly mandatory but is strongly recommended. With a LUT filed on the GST portal you export at 0% without paying IGST upfront. Without a LUT you must pay 18% IGST on the export and then claim a refund, which blocks working capital until the refund is processed.

Is GST charged if I consult a foreign client over a video call?

If the recipient is located outside India, the place of supply is outside India and payment is received in foreign exchange, the service is zero-rated even when delivered remotely by video or email. If the foreign client is physically present and served in India, the place of supply may be India and 18% GST would apply.

RCM

Is GST on legal services under RCM?

Legal services provided by an individual advocate or a firm of advocates to a business entity are taxed under the Reverse Charge Mechanism — the business recipient pays 18% GST directly to the government under Notification 13/2017-CT(R). Legal services provided by a law firm structured as an LLP or company are generally charged under forward charge instead. The recipient can claim ITC on the tax paid.

How is GST paid when a foreign consultant serves an Indian company?

When an unregistered foreign consultant provides services to a registered Indian business, the import of service falls under RCM (Notification 10/2017-IGST). The Indian company self-pays 18% IGST on the invoice value through GSTR-3B Table 3.1(d) and can claim the same amount as ITC in the same return, making it tax-neutral where the input is used for taxable business activity.

Does the recipient of RCM consulting get ITC?

Yes. GST paid under RCM on a foreign consultant or an individual advocate is available as Input Tax Credit to a registered recipient, provided the service is used for taxable business activity and is not blocked under Section 17(5). Because the tax is self-paid and recovered in the same period, the net cash impact is usually nil.

ITC & Advances

Can a company claim ITC on consulting fees?

Yes. Consulting is not a blocked credit under Section 17(5), so a registered business can claim full ITC of the 18% GST paid on consulting fees. The four conditions must be met: a valid tax invoice, the service actually received, the tax reflected in GSTR-2B, and the recipient having filed its own GSTR-3B. The credit effectively reduces the real cost of the consulting fee to the base amount.

Is GST payable on an advance received for consulting?

Yes. For services, the time of supply is the earliest of the invoice date, the payment-receipt date or the service-completion date (Section 13). So GST becomes payable when a consultant receives an advance. The consultant issues a Receipt Voucher (Rule 50), pays 18% GST in that month's GSTR-3B, and adjusts it against the final tax invoice later. The client can claim ITC only on the final invoice, not on the receipt voucher.

Did GST 2.0 change the tax on consulting services?

No. The GST 2.0 rationalisation effective 22 September 2025 restructured many goods and services rates into a two-slab system but did not change professional and consulting services — they remain at 18%. Export zero-rating, the advocate RCM rule and the import-of-service RCM rule all continue as before. Always confirm current notifications on gst.gov.in.

Done-for-you

Related TaxClue Services

GST RegistrationRegister your consulting practice and get your GSTIN online.Explore →GST Return FilingMonthly GSTR-1 & 3B, including self-assessed RCM on imports and advocate fees.Explore →Export Refund under LUTFile your LUT and claim zero-rated export refunds smoothly.Explore →ITC ReconciliationClaim eligible consulting ITC and avoid blocked-credit and Rule 42 errors.Explore →

Continue reading

Next in this GST cluster

GST on Advocate & Legal Services GST on Export of Services Letter of Undertaking (LUT)Zero-Rated Supply under GST Input Tax Credit Rules HSN / SAC Codes & Rates

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