• What is the GST exemption limit for consultancy fees? 20 lakhs or 40 lakhs?

Hi, I work as a consultant with a private firm. The nature of consultancy is Program Management. 

I understand that the GST exemption limits have been enhanced to 40 lakh for goods this year. Is the same also applicable for consultancy fees? My company says the limit is 40 lakhs and my CA says its 20 lakhs. Which is right? Can someone also share the relevant document stating this - so that it would be easier to sort this confusion
Asked 4 months ago in GST from Delhi, Delhi

Hello Sir,

 

Your CA is correct.

 

The increased limit is applicable only for sale of goods. For service providers limit continues to be Rs 20 lakh.

Karishma Chhajer
CA, Jodhpur
1522 Answers
11 Consultations

5.0 on 5.0

Hello,

 

The limit for taking GST registration for a service provider is Rs. 20 Lakhs. The limit was increased for supplies of goods only up to Rs. 40 Lakhs through Notification No. 10/2019-Central Tax. You can verify the notification which specifically states the limit is set for a person "who is engaged in exclusive supply of goods".

 

I hope that this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
1587 Answers
5 Consultations

5.0 on 5.0

Hi

 

Your CA is correct. Enhanced limit is only available for supplier of goods.

For supplier of services, it is 20 lacs only.

 

Refer to Notification 10/2019 - Central Tax.

Lakshita Bhandari
CA, Mumbai
4255 Answers
239 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

Your CA's understanding is absolutely correct.

 

Notification No. 10/2019-Central Tax:

 

The enhanced limit is only applicable for supplier of goods.

 

The threshold for registration for service providers is Rs 20 lakhs only.

Payal Chhajed
CA, Mumbai
3730 Answers
50 Consultations

5.0 on 5.0

Yes. For services, it is 20 lacs.

Please check official notification. It is very clear.

Lakshita Bhandari
CA, Mumbai
4255 Answers
239 Consultations

5.0 on 5.0

Yes, it is confirmed hereby. Please verify the same in the notification specified in the above answer.

Hunny Badlani
CA, Madhya Pradesh
1587 Answers
5 Consultations

5.0 on 5.0

Yes, it is 20 lakh for service providers.

 

You can check the same with Notification No. 10/2019-Central Tax.

Payal Chhajed
CA, Mumbai
3730 Answers
50 Consultations

5.0 on 5.0

Since you are providing services the limit applicable is Rs. 20 lakh and not Rs. 40 lakh.

 

https://www.taxontips.com/category-goods-services-tax-gst-registration/

 

This is the notification number: Notification No. 10/2019-Central Tax dated 7th March, 2019

 

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
2688 Answers
24 Consultations

5.0 on 5.0

Hello,

 

GST exemption limit for service providers is 20 Lakhs only.

 

40 lakhs limit was raised for the traders in goods.

 

Thanks 

Damini

 

Damini Agarwal
CA, Bangalore
343 Answers
25 Consultations

5.0 on 5.0

It is 20 lakh for service providers.

Karishma Chhajer
CA, Jodhpur
1522 Answers
11 Consultations

5.0 on 5.0

- In case of services, threshold limit for GST registration is Rs.20 lacs and not Rs.40 lacs. You should raise a proper tax invoice to the company and file the returns on monthly and quarterly basis.

- I may assist you in GST registration and filing of GST returns.

Vivek Kumar Arora
CA, Delhi
3291 Answers
175 Consultations

5.0 on 5.0

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