GST for Business Consultants in India — Registration, LUT & Compliance
Last updated: March 2025 · Reviewed by TaxTap CA team
If your annual turnover exceeds ₹20L, GST registration is mandatory. For business consultants working with foreign clients, services qualify as 'export of services' — zero-rated under GST with LUT. You charge 0% GST on export invoices.
Who this applies to
- Business Consultants with annual turnover above ₹20L
- Business Consultants working with international clients
- Freelance business consultants confused about GST on foreign income
- Business Consultants wanting to claim Input Tax Credit on tools and software
How this works for Business Consultants
GST registration is mandatory when aggregate turnover crosses ₹20L (₹10L for special category states).
Services to foreign clients qualify as 'export of services' — zero-rated with Letter of Undertaking (LUT).
File LUT (Form GST RFD-11) at the start of each financial year. Without it, you'd charge IGST and file for refund.
For domestic clients, charge 18% GST. For foreign clients with LUT, charge 0%.
File GSTR-1 (outward supplies) and GSTR-3B (summary return) monthly or quarterly.
Keep FIRC/BRC from your bank as proof of export — mandatory for GST compliance.
Common deductible tools for Business Consultants
Commonly missed expenses
Real examples
Business Consultant under ₹20L turnover
A business consultant earning below the GST threshold with only domestic clients.
Business Consultant with foreign clients
A business consultant earning from export of services, registered under GST with LUT.
What should you do?
Under ₹20L with only domestic clients? GST registration is optional.
Have foreign clients? Register voluntarily and file LUT — even if under ₹20L. Cleaner invoicing.
Crossing ₹20L? Don't delay registration. Late registration means penalties.
GST-registered? Claim ITC on software subscriptions, coworking, and business tools.
Mistakes to avoid
Charging 18% GST on foreign invoices instead of zero-rating with LUT.
Not filing LUT at the start of the financial year.
Forgetting that ₹20L threshold counts all supplies — not just taxable ones.
Not collecting FIRC/BRC from bank for export proof.
Mixing personal and business bank accounts making GST reconciliation difficult.
Documents you need
- GST registration certificate
- LUT filing acknowledgment (Form RFD-11)
- FIRC or e-BRC for foreign remittances
- All invoices with correct SAC codes
- Bank statements reconciled with GSTR returns
GST giving you a headache?
Whether you need to register, file LUT, or figure out export of services — we handle it all. Talk to a real CA.