If you’re running a business or working as a freelancer, you might’ve heard this question often:
“Consultancy services pe GST lagta hai kya?”
And honestly, it’s a valid doubt, especially for small businesses and professionals just starting.
Let’s clear it up simply, without any confusing tax jargon.
Let's Talk About It Simply:
Suppose you're a marketing consultant, an IT expert, or a legal advisor, and you provide professional advice to clients. Now, when you raise an invoice for your services, the next question is — do you need to add GST on that bill?
Yes, in most cases, consultancy charges DO attract GST.
Why? Because under the Goods and Services Tax (GST) law in India, “consultancy services” are considered a taxable supply of service. So if you’re offering professional or advisory services and your total turnover exceeds the GST registration limit, you are liable to register under GST and charge it on your invoice.
What’s the GST Rate on Consultancy?
For most consultancy services, the GST rate is 18% (9% CGST + 9% SGST or 18% IGST for interstate clients).
For example:
You provide services worth ₹10,000 → GST = ₹1,800 → Total Invoice = ₹11,800
So yes, that 18% makes a difference in pricing and compliance.
When Does GST Apply on Consultancy Charges?
GST is applicable only if:
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You’re registered under GST (mandatory if turnover exceeds ₹20 lakhs or ₹10 lakhs in special category states)
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You’re providing services in a professional or business capacity (not personal help)
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You’re raising invoices and receiving payments in return for services
Even freelancers and part-time consultants are included if they meet the threshold limit.
What If I'm Not Registered Under GST?
If your annual income from consultancy is less than ₹20 lakhs, GST registration is not mandatory. In that case, you don't need to charge GST in your bills.
However, once you cross the limit, you must register and comply with GST rules. This includes filing returns, collecting tax, and issuing GST-compliant invoices.
Effizentseele Can Help You Stay Compliant
If you’re confused about whether to charge GST on your consultancy or how to register under GST, Effizentseele is here to make things easier.
We have over 25,000+ GST Suvidha Kendras across India, offering professional assistance in:
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GST registration
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Return filing
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Invoice correction
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Business consultancy
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MSME registration and more
You can also consult our trained experts to understand the GST impact on your consultancy business, whether you’re working online or offline.
Final Word:
Yes, consultancy charges attract GST, but only if your income crosses the threshold and you’re officially registered. Don’t worry if you’re not sure how it all works — help is just around the corner.
Visit https://www.effizentseele.com to find your nearest support center or get expert advice today.