Since the government made the announcement of GST rates vehemently, there has been much confusion in the market. There is much confusion regarding GST registration, GST billing, and GST return filing.
It’s important to register your counseling or consultancy business under the GST. Therefore, you must understand the GST structure applicable to this concept and invest in saving taxes on your services. This article will find everything about GST on consultants in India.
GST Registration for Consultancy Services
So, the question is: Is it necessary for individual consultants in India to register under GST? As a service provider, you must register under GST Registration if you meet any of these criteria:
- In any financial year, turnover exceeds Rs. 20 lakhs (excluding the North-Eastern States).
- A Financial Year with turnover exceeding Rs.10 lakhs;
The SAC Code for Consultancy Services
SAC CODE – 99831
Among the Services Accounting Codes (SAC Codes), 99831 is used to describe management consulting and information technology services.
As part of this service code, you will find the following:
- On behalf of the client, coordination and supervision of the use of resources in the preparation, implementation, and completion of a project;
- The scope of services that can be rendered as part of the project management process includes budgeting, accounting, cost control, procurement, planning of timeframes, quality control, coordination of subcontractors’ work, inspections, and quality control, among others;
- There is a range of services available under the umbrella of project management, including management of the project, management of the office, management of their staff and other information technology services.
SAC CODE – 9983
The architectural drafters or engineering technicians in this service code provide architectural drafters or engineering technicians with detailed layouts, drawings, plans, and illustrations based on engineering and architectural specifications of buildings, structures, systems or components; compilation services of facts and information (such as databases), and so forth.
SAC CODE – 998312
998312 is used in Goods and Service Tax classifications for business consulting services, including public relations services. As far as this service is concerned, it falls under the heading of Professional, technical and business services.
The Service Accounting Code is generated using a uniform format that follows a set of rules.
It is always the first two digits of a service number that are 99. This code, 83, indicates that the service has a major nature, a combination of professional, technical and business services in this case.
As you can see, the next two digits 12 represent a more precise description of this service, which is a business consulting service, such as public relations services, in this instance.
If at all, the government has taken the initiative to implement a single taxation system in India to reduce the burden on citizens in complying with multiple taxes daily. Hence, consulting companies and consultants need to understand the structure of GST on consultancy applicable to this particular service and invest in such a way as to save on tax compliance. For further guidance on GST on Consultancy Services in India, you can contact our GST Experts at: 8881-069-069.
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