GST on services can be confusing. Here's a plain-language guide to the most common service categories and how to calculate the tax correctly.

Common Service GST Rates

How Freelancers Should Calculate GST

If you're a freelancer or consultant earning above ₹20 lakh/year (₹10 lakh in some states), you must register for GST.

Example: You charge a client ₹50,000 for web development

• Base fee: ₹50,000
• GST @ 18%: ₹9,000
• Invoice total: ₹59,000

The ₹9,000 must be deposited with the government. You can claim Input Tax Credit (ITC) on your business expenses (laptop, software, internet).

Use our GST Calculator to quickly calculate your invoice totals.

Reverse Charge Mechanism (RCM)

In certain cases, the recipient pays GST instead of the supplier:

• Import of services
• Services from unregistered persons above threshold
• Legal services from advocates
• GTA (Goods Transport Agency) services

GST on Salary? No.

Salary is not a service — it's employment income. No GST applies to salaries. GST applies only when you provide services as a freelancer or business.

Composition Scheme

Small service providers earning ₹20–50L/year can opt for the Composition Scheme and pay 6% flat (3% CGST + 3% SGST) instead of the standard 18%. However, they cannot claim ITC or issue tax invoices.

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For all your GST calculations: GST Calculator — supports both inclusive and exclusive modes with CGST/SGST split.