If you are a Chartered Accountant, Company Secretary, lawyer, doctor, architect, management consultant or any other professional service provider in India, GST compliance is mandatory above the threshold. This guide explains GST applicability, registration requirements, applicable SAC codes and billing practices for professionals.
GST Registration Threshold for Professionals
Professionals (individuals and firms) providing taxable services must register for GST if their annual aggregate turnover exceeds:
- ₹20 lakh for professionals in most states (including Kerala)
- ₹10 lakh for professionals in certain special category states
Professionals providing services to recipients in other states (inter-state supply) must register regardless of turnover. Professionals whose services are entirely in exempted categories are not required to register.
GST Rate on Professional Services
Most professional services in India are taxed at 18% GST (9% CGST + 9% SGST for intra-state or 18% IGST for inter-state).
Exceptions — Exempt Professional Services:
- Health care services provided by a clinical establishment, authorised medical practitioner or paramedics — Nil GST
- Services by individual advocates to other advocates or firms — Nil GST (but reverse charge applies when an advocate provides services to a business entity)
- Educational services — Nil GST
Reverse Charge on Legal Services
Under Reverse Charge Mechanism (RCM), when an advocate (individual or firm) provides legal services to a business entity (any person registered under GST or a company), the business entity (the recipient) pays GST at 18% — not the advocate. This means individual advocates need not charge GST on their invoices to business clients, but those clients must pay GST under RCM and can claim ITC on it.
SAC Codes for Professional Services
- 998211-998219: Legal services
- 998221-998229: Accounting, auditing and tax consultancy services (CA services)
- 998311-998319: Management consulting services
- 998321-998329: Architectural and engineering services
- 998111-998119: Medical and dental services
Input Tax Credit for Professionals
GST-registered professionals can claim ITC on:
- GST paid on office rent
- GST on office supplies, stationery, professional books and subscriptions
- GST on professional software (accounting software, legal research tools)
- GST on professional conferences and seminars
- GST on business travel (cab, hotel for business travel)
ITC cannot be claimed on food and beverages, club membership, health insurance for employees (unless part of mandatory benefits).
Conclusion
GST compliance for professionals in India requires clear understanding of the applicable rates, SAC codes, exemptions and reverse charge provisions. SPOTON provides end-to-end GST services for CAs, lawyers, doctors, consultants and other professionals across Calicut and Kerala. Contact us for GST registration and return filing.
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