RCM rate for consultancy charges

Originally posted by : aman kumar
	Mera GST number ban gayega sir

Agar aap koi vaysay karte hai aur agar aapka vikri mulya 40 lakh ya usse  jyada hai ya fir aap service business me ho jisme aap 20 lakh se jyada ka turnover hai tab aapko registration karna anivarya hai ..............BHARAT KE PURVOTTAR RAJYO ME VYAVSAY KI MARYADA BHI 20 LAKH HI HAI .................      

In India, the rate of Reverse Charge Mechanism (RCM) for consultancy charges is 18% under the Goods and Services Tax (GST) regime.

RCM is a mechanism where the recipient of goods or services is liable to pay the tax to the government instead of the supplier. In the case of consultancy services, if a registered person is availing the services from an unregistered person, the registered person is required to pay the GST under RCM.

Under RCM, the liability to pay the tax is shifted from the supplier to the recipient of the service. The rate of GST applicable under RCM is the same as the rate applicable to the respective goods or services. In the case of consultancy services, the applicable GST rate is 18%.

It is important to note that the applicability of RCM depends on various factors such as the type of goods or services, the nature of the transaction, and the status of the supplier. It is advisable to consult a tax professional or refer to the provisions of the GST Act for specific guidance on the applicability of RCM for different goods or services.

GST on consultancy charges is 18% under SAC code 998311 or 998312 depending on the nature of service. If you are a registered business paying fees to an unregistered consultant, you need to pay GST under Reverse Charge Mechanism (RCM) at 18% and you can claim it back as ITC in the same return period. The RCM obligation is under Section 9(4) of the CGST Act. For an ITC-eligible registered business, this is usually cost-neutral since input equals output. This [GST on professional services guide](https://taxgarden.in/blog/gst-on-professional-services-ca-legal-consulting-india-2026) has the full rate table including when RCM applies vs. forward charge.