GST Filing for Service Businesses
GST compliance for agencies, consultants, IT and service firms — invoices, advances, exports and reverse charge, handled correctly.
In a typical month, you deal with
- Invoices to clients across states
- Advances and retainers received
- Sometimes, foreign clients
- Expenses with GST — software, rent, travel
- Services like legal fees that may fall under reverse charge
How GST works for service businesses
Service providers must register once turnover crosses ₹20 lakh (₹10 lakh in a few states); below that, even inter-state services can be supplied without registering. GST becomes due when an advance is received, and an invoice must be issued within 30 days of providing the service. Exports of services are zero-rated — with a Letter of Undertaking (LUT) you export without paying IGST. Some services you receive, such as legal services from an advocate, are taxed under reverse charge, so you pay the GST instead of the supplier. Where the client is decides whether you charge IGST or CGST plus SGST.
What data should you maintain?
- Tax invoices to clients
- Advances and retainers received
- Export invoices and bank realisation records
- Credit notes
- Bills with GST — software, rent, travel, professional fees
- Reverse-charge services received
- Expense bills from other states
- GSTR-1 and GSTR-3B
- GSTR-2B and IMS actions
- LUT for exports (renewed every year)
- RCM liability workings
Your monthly GST workflow
- Invoices & advances
- Export invoices & LUT
- Expense bills
- GSTR-2B
- RCM check
- Reconciliation
- GSTR-1
- GSTR-3B
- GST report
Common GST mistakes
For services, GST is due when the advance is received, not when you invoice later.
Without an LUT for the year, you pay IGST on exports and wait for a refund.
Services like legal fees from advocates can attract GST under reverse charge, payable by you.
Charging CGST + SGST where IGST applies (or the reverse) means paying again and claiming a refund.
Invoices for services must be issued within 30 days of the service; late invoicing shifts tax into the wrong month.
Credit on food, club memberships and personal expenses is blocked even when the bill shows GST.
What should you send every month?
Choose your business type. This is the data a good GST process starts with.
Your monthly GST data checklist
Download this checklist
Get it as a file to share with your team or accountant.
How Tax Paramarsh helps
- Track advances, invoices and the 30-day invoicing rule
- File your LUT every year and keep export documents in order
- Work out reverse-charge liability each month
- Prepare GSTR-1 and GSTR-3B — you approve, we file
- Check place of supply on inter-state and foreign invoices
Pricing
Most service firms fit the Basic (₹299/month) or Standard (₹599/month) plan; firms with exports and many clients move to Pro (₹999/month). Plus 18% GST. Basic covers up to 10 invoices a month, Standard 11–50 and Pro 51–200 — with turnover up to ₹50 lakh for Basic and Standard, and ₹1 crore for Pro. Pay yearly and get 12 months for the price of 10.
See all GST plans →Common questions
When does a service business need GST registration?
When aggregate turnover crosses ₹20 lakh (₹10 lakh in some special-category states). Below that, registration is optional — even for services supplied to other states.
Is GST payable on export of services?
Exports are zero-rated. With a Letter of Undertaking (LUT) for the year, you export without paying IGST. Payment must be received in convertible foreign exchange or in rupees where RBI allows.
What is reverse charge for service businesses?
For some services you receive — legal services from advocates, certain transport and some others — you pay the GST instead of the supplier, and can usually claim it back as credit.
When must I issue an invoice for a service?
Within 30 days of providing the service (45 days for some financial-sector businesses).
Do I charge IGST or CGST and SGST?
It depends on the place of supply — usually where your registered client is. If that is in your state, charge CGST + SGST; if in another state, IGST.
Often needed alongside GST
GST for other industries
Let us manage your service firm’s GST every month.
Accurate data, reconciled credit, filed on time.