GST on Services India 2026 — Complete Rate Guide for Common Services
GST on services follows the SAC (Services Accounting Code) system. Here is the complete rate guide for common services in India, updated for GST 2.0 (September 2025).
GST Rates on Common Services
Professional Services
| Service | GST Rate | SAC Code |
|---|---|---|
| IT and software services | 18% | 9983 |
| Legal services (to businesses) | 18% (RCM) | 9982 |
| Accounting and CA services | 18% | 9983 |
| Consulting and advisory | 18% | 9983 |
| Architecture and engineering | 18% | 9983 |
| Medical/dental services | 0% (Exempt) | 9993 |
| Veterinary services | 18% | 9993 |
Food and Hospitality
| Service | GST Rate | Notes |
|---|---|---|
| Restaurant (all types) | 5% (no ITC) | GST 2.0: AC and non-AC both 5% |
| Hotel room (below ₹7,500/night) | 12% | |
| Hotel room (above ₹7,500/night) | 18% | |
| Outdoor catering | 5% (no ITC) | |
| Club membership | 18% |
Financial Services
| Service | GST Rate |
|---|---|
| Banking services | 18% |
| Insurance premium (life) | 18% on risk component |
| Insurance premium (health) | 18% |
| Mutual fund management fees | 18% |
| Stock broking | 18% |
| Loan processing fees | 18% |
Transport Services
| Service | GST Rate | Notes |
|---|---|---|
| Air travel (economy) | 5% | |
| Air travel (business class) | 12% | |
| Rail travel (AC) | 5% | |
| Rail travel (non-AC) | 0% (Exempt) | |
| Cab/taxi (app-based) | 5% | Ola, Uber, etc. |
| Goods transport (GTA) | 5% or 12% | RCM applies |
| Courier services | 18% |
Education
| Service | GST Rate | Notes |
|---|---|---|
| School/college education | 0% (Exempt) | |
| Coaching classes | 18% | |
| Online education platforms | 18% | |
| Skill development (NSDC approved) | 0% (Exempt) |
Real Estate Services
| Service | GST Rate |
|---|---|
| Real estate agent commission | 18% |
| Property management | 18% |
| Housing society maintenance (above ₹7,500/month) | 18% |
| Construction services | 12% or 18% |
Telecom and Digital
| Service | GST Rate |
|---|---|
| Mobile calls and internet | 18% |
| DTH and cable TV | 18% |
| OTT platforms (Netflix, Hotstar) | 18% |
| Cloud computing services | 18% |
Healthcare
| Service | GST Rate | Notes |
|---|---|---|
| Hospital services | 0% (Exempt) | |
| Diagnostic services | 0% (Exempt) | |
| Ambulance services | 0% (Exempt) | |
| Cosmetic surgery | 18% | Non-essential |
| Gym and fitness | 18% | |
| Yoga classes | 18% |
GST 2.0 Changes for Services (September 2025)
GST 2.0 primarily rationalised goods rates. For services, the key change was:
- Restaurants: All restaurants (AC and non-AC) now attract 5% GST without ITC. Previously, AC restaurants attracted 18% with ITC.
- Hotels: No change — 12% below ₹7,500/night, 18% above.
Place of Supply for Services
For GST purposes, the place of supply determines whether CGST+SGST or IGST applies:
- Intrastate: Supplier and recipient in same state → CGST + SGST
- Interstate: Supplier and recipient in different states → IGST
- Export of services: Zero-rated (0% IGST with refund or LUT)
Frequently Asked Questions
Is GST applicable on freelance income?
Yes. Freelancers providing services to businesses must charge 18% GST if their annual turnover exceeds ₹20 lakh. Below ₹20 lakh, GST registration is optional.
What is the GST rate on software development?
Software development and IT services attract 18% GST. This applies to custom software development, SaaS, and IT consulting.
Is GST applicable on online courses?
Yes. Online education platforms and coaching classes attract 18% GST. Only government-approved educational institutions are exempt.
Need help with GST registration for your service business? I handle GST registration starting ₹999. Message me on WhatsApp.
Browse GST rates by category: Services · Healthcare · Food & Beverages · All GST Rates →
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