Consultancy Services in India contribute a wide range of staffing requirements for a financially savvy, less tedious, and skilled practice. It encourages linking to put their whole spotlight on their central business and abstain from overburdening the in-house staff. It provides long-haul advantages to both the organization and its workers. In this article, we will discuss GST on consultancy services and also the significance of GST Registration.
Before understanding the procedure, now you need to ensure some facts about the GST (Goods and Services tax).
Understand About GST
GST is an absolute Indirect Tax that is a levy on the sale, manufacture, and consumption of goods and services over the country. It is a separate tax proper for the supply of goods from the manufacturer to the user. GST is vital only on value addition at each stage. Although, GST Registration is obligatory for registering the business of Consultancy Services.
Rate of GST on Consultancy Services
GST Rate levied on consultancy agencies with the rate of –
GST rate on Consultancy services attracts 18% of GST Rate. Consultancy can be of any kind related to healthcare, finance, investments etc. Though there are five slab rates, although consultancy services fall under 18% slab only.
NOTE- Other GST slabs for Consultancy Services are 0%, 5%, 12%, 18% and 28%.
SAC Code applicable for Consultancy Services
The following SAC (Service Accounting Code) has established for the different advertising services in India.
- SAC Code 9983 – Other specialists, technical and business services
- SAC Code 99831 – Management consulting and management services; knowledge technology services.
- SAC Code 998312 – Business consulting services covering public relations services
So these are the essential points regarding the Consultancy Services in India.
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