28 July 2024
For service tax professionals (such as those providing professional or consultancy services) who fall under Section 194J of the Income Tax Act, 1961, the relevant HSN (Harmonized System of Nomenclature) code and migration process to GST are as follows:
### **HSN Code for Professional Services**
- **HSN Code: 9982** - **Description:** This code covers "Legal, accounting, auditing, bookkeeping, medical, architectural, engineering, and other professional services." This broadly includes services provided by professionals such as consultants, accountants, and lawyers.
### **GST Rate:**
- **GST Rate:** **18%** (comprising 9% CGST and 9% SGST for intra-state supplies, or 18% IGST for inter-state supplies).
### **Migration Process from Service Tax to GST**
1. **Obtain GST Registration:** - **If Registered under Service Tax:** Existing service tax registrants must obtain a GSTIN (Goods and Services Tax Identification Number) by migrating their service tax registration to GST. This process is generally straightforward if you are already registered under service tax. - **How to Migrate:** - **Log in to the GST Portal:** Use the [GST portal](https://www.gst.gov.in) to access the migration process. - **Provide Existing Service Tax Registration Details:** Enter your service tax registration number and other required details to migrate. - **Complete KYC and Verification:** Provide necessary KYC documents and verify your details as per the GST portal instructions. - **Receive GSTIN:** Once approved, you will receive a GSTIN, and your service tax registration will be updated to reflect your GST registration.
2. **Familiarize with GST Compliance:** - **Invoicing:** Ensure your invoices comply with GST requirements, including HSN codes, GST rates, and other mandatory details. - **Filing Returns:** File GST returns (GSTR-1, GSTR-3B, etc.) as per the requirements. Maintain proper records of your transactions, GST collected, and input tax credits.
3. **Update Records and Agreements:** - **Contracts and Agreements:** Update your service contracts and agreements to reflect GST charges and compliance. - **Client Communication:** Inform your clients about the change in the tax regime and GST implications.
4. **Consult a GST Professional:** - **Professional Advice:** Given the complexities of GST, consulting a GST practitioner or tax advisor can help you navigate the migration process smoothly and ensure compliance with all GST regulations.
### **Summary:**
- **HSN Code for Professional Services:** 9982 - **GST Rate:** 18%
The migration process involves obtaining a GSTIN, updating your invoicing and compliance practices, and ensuring that you adhere to GST regulations. If you have any specific questions or encounter difficulties during migration, seeking guidance from a GST professional is highly recommended.
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