A Guide On GST For Professional Services In India

According to Government Portal, GST is a comprehensive, multiple-step, destination-based tax that is levied at every addition of value, and we think that provides substantial benefits for the GST enrollee.

GST is a uniform, destination-based indirect form of tax levied on value added to goods and services at every step in a chain of supplies. GST paid on purchases of goods and services may be offset by an output tax payable on supplies of goods and services.

GST provides comprehensive, seamless taxation across the entire supply chain. In the case of services exports, as mandatory registration under GST is required for any goods/services sold across states.

Liability of GST Payment:-

GST Registration is applicable on services, since the delivery services are covered by the Definition of Supply. GST Number Search in India is on Supply, and liability for payment of GST is in terms of Section 13 of CGST Act.

The GST structure has multiple rates and slabs, and requires the classification of goods (in terms of the Harmonized System of Nomenclature-HSN) and services (in terms of Service Code).

GST in India is based on a dual GSTA model, in which both central and state governments tax all transactions in a given state that include supply of goods and services, at once, according to CGST Act and SGST Act, respectively.

Both the GST and the SGST are two parallel taxes in the a dual GST a regime levied at the same time on goods and services. GST rates in India must be referenced for knowing tax rates for relevant goods and services.

Exemption in GST Regime:-

The current GST regime does not permit any exemption from taxes on investments/operations in a particular field.

At the present moment (whether it is the service tax or one-rate system from earlier), indirect taxes have been extended to nearly every area of economic activity.

The tax rate on services provided by professionals has gone up from 15% under the former service tax regime to 18% in the GST regime, a move that is expected to raise revenue to the central government.

The GST Act has brought all professional services under GST as tax umbrella, regardless of the nature of service, be it provided by a lawyer, a doctor, an engineer, or a movie actor.

It is important to note that GST is a destination-based tax, not an origin-based tax under existing laws; businesses will be required to re-configure their existing transactional methodologies in order to minimize tax liability, and that requires services from tax professionals.


The bookkeeping process might have to be changed, since there would be both advance taxes (excise duties, services taxes, and VAT) as well as GST in the current financial year.

In which would need to be reflected in accounts for the fiscal years 2017-18. Under GST law, professionals providing services are required to keep records and details of supplies, wherein input tax received and output tax paid invoices are required to be retained till 72 months after the date when the annual returns are required to be filed for the corresponding year.

Must Read Topics:




Leave a Reply

Your email address will not be published. Required fields are marked *