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RCM rate for consultancy charges

AJIT JAISWAL (17 Points)

16 April 2023

Dear/madam

Can you tell me the rate of RCM for consultancy charges

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4 Replies

aman kumar (7 Points)
Replied 16 April 2023

Mera GST number ban gayega sir

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 April 2023

No there is no RCM on consultancy charges.

Yes if the consultancy taken from Lawyer then in term Notification 13/17 CT rate RCM applicable & the Ratr is 18%

NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 17 April 2023

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 .................

Pranjal Gupta (141 Points)
Replied 17 April 2023

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.