GST Rate Finder for Startups and Small Businesses
Find the correct GST rate for your product or service — with HSN/SAC codes, exemption status, and startup-specific notes on zero-rating, RCM, and composition eligibility.
Invoice must show company GSTIN. Exports zero-rated under LUT.
Self-assess 18% IGST under RCM. ITC recoverable same period. File in GSTR-3B Table 3.1(d).
Full ITC for business use. Keep asset register.
ITC claimable if used for business — unlike cars.
Residential premises rented by company: 18% under RCM from Oct 2022.
ITC fully claimable as business expense.
Movable furniture only. ITC blocked on civil/construction works.
Blocked under Section 17(5)(c) — immovable property construction.
No GST on electricity. No ITC available (exempt supply).
RCM if agency is registered. Self-assess if unregistered supplier.
Google/Meta not GST-registered in India. Self-assess 18% IGST under RCM; ITC recoverable same period.
ITC must be reversed under Sec 17(5)(h) if gifted free. If sold even at ₹1, ITC is safe.
Must be for business travel; invoice in company name.
< ₹7,500/night: 12%; ≥ ₹7,500/night: 18%. Invoice must be in company GSTIN.
Food & beverage ITC permanently blocked under Section 17(5)(b) — even for genuine client meals.
Passenger transport ITC blocked for employees under Section 17(5)(a).
Salaries are not a supply under GST. No GST applies.
Manpower supply taxable at 18%; ITC available to company.
ITC blocked under Section 17(5)(b). Personal accident insurance may differ — consult CA.
Share issuance is not a supply under GST. No GST applies.
ITC blocked under Section 17(5)(a) even for business use.
Lower GST rate but Section 17(5)(a) ITC block still applies.
ITC claimable if used for goods transport — exempt from Section 17(5) block.
Goods transport vehicles exempt from Section 17(5) block.
Advocate does not charge GST — recipient pays RCM. File in GSTR-3B and recover ITC.
Banks charge GST on processing fees, forex charges, etc.
Exempt supply — proportional ITC reversal under Rule 42 if interest income is significant.
Non-executive director remuneration: RCM at 18% IGST applies.
Rates as per GST notifications effective FY 2024-25. Verify HSN/SAC classification with your CA before filing returns.
See every government scheme your startup qualifies for
BenefitStack scans 100+ central and state schemes against your company profile and delivers a free eligibility report. No credit card required.
Frequently asked questions
What GST rate applies to SaaS and software services in India?
SaaS and software services (including cloud-based software, mobile apps, and platform services) attract 18% GST under SAC code 998314 (IT design and development services) or 998315 (IT support services). Exported software services qualify as zero-rated exports — no GST is charged and ITC is fully refundable. This makes software exports effectively GST-exempt.
Is GST applicable on startup equity fundraising and investor transactions?
No GST applies on share issuance, equity fundraising, or secondary share transfers. Securities transactions are outside the scope of GST. However, advisory fees, legal fees, and due diligence services related to fundraising do attract 18% GST and are subject to ITC eligibility rules for the recipient.
What is the GST rate for consulting, advisory, and professional services?
Most consulting, advisory, management consulting, financial advisory, and professional services attract 18% GST under various SAC codes (9983xx series). Legal services attract 18% GST — if provided by an advocate to a business entity, the reverse charge mechanism (RCM) applies, meaning the recipient pays GST directly to the government, not the advocate.
Can startups opt for the GST composition scheme?
Startups with aggregate turnover below ₹1.5 crore (goods) or ₹50 lakh (services) can opt for the composition scheme and pay a flat 1–6% GST without maintaining detailed records or filing monthly returns. However, composition taxpayers cannot claim input tax credit, cannot supply inter-state, and cannot collect GST from customers — making it unsuitable for B2B startups.
What is the reverse charge mechanism (RCM) and when does it apply to startups?
Under Reverse Charge Mechanism (RCM), the recipient pays GST instead of the supplier. Common RCM scenarios for startups: legal services by advocates, GTA (goods transport), services from unregistered foreign vendors (e.g., Google Ads, AWS, Zoom), director fees paid by the company, and security services. RCM creates a compliance obligation even when purchasing from unregistered vendors.