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Is GST applicable for consultants working for a Indian subsidiary company.

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This query is : Resolved

Ganesh M (Querist)

08 September 2023 My employer is a software company, an Indian subsidiary to a foreign company. They provide software services to the foreign company. We are hired as a consultant for a 1 year (fixed period of time) and the salary is fixed per month. It is fixed contract and there is a notice period, NDA etc as part of contract. We don't need to raise invoice. Company will pay every month after deducting 10% TDS.

In this scenario, Since we are working as consultant, Do we need to pay GST. Company says, there is no GST applicable as it is fixed term contract.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 September 2023 Since you are working as a consultant with 10% TDS deduction under section 194JB, if your payment in a year exceed 20 lacs GST applicable.
You have to raise tax invoice with GST and register with GST.

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