A structured breakdown based on the GST changes effective 22nd September 2025:

 A structured breakdown based on the GST changes effective 22nd September 2025:

1. GST Rate Structure Old: 4 slabs – 5%, 12%, 18%, 28% New: 2 slabs – 5% & 18%, plus a 40% “sin/luxury” slab Effect: Easier classification of goods and services. Many items have become cheaper (earlier 12% → now 5%). Some items costlier (earlier 28% → now 40%). Engineering consultancy stays unchanged at 18%. 2. Services (like Engineering Consultancy) Rate: Remains 18% (standard service tax rate). Effect: No increase/decrease in GST liability for consultants. Invoices and contracts remain same at 18%. Clients still bear the same tax cost. 3. Compliance & Returns Change: GST return filing/revision is time-barred after 3 years from the due date (earlier no clear outer limit). Effect: Consultants & businesses must file and correct returns on time. No chance to revise old returns beyond 3 years. More discipline in compliance needed. 4. Registration & Refunds Change: New simplified system for quick registration and automated refunds (for low-risk taxpayers). Effect: Faster registration for small businesses/professionals. Refunds (like ITC) will be quicker → better cash flow. Reduced compliance burden for genuine taxpayers. 5. Input Tax Credit (ITC) Change: Clarified and streamlined ITC rules. Effect: Easier to claim ITC without disputes. Helps consultants offset GST paid on office rent, laptops, internet bills, etc. against GST collected from clients. 6. Litigation & Ease of Doing Business Change: Government aims to reduce disputes with fewer slabs and simplified rules. Effect: Less classification-related litigation (earlier confusion between 12% vs. 18% etc.). Consultants spend less time on tax disputes, more on core work. Summary for Engineering Consultants Category Effect GST Rate Still 18% (no change) Billing Same as before, invoices continue with 18% Compliance Stricter – 3-year limit for returns/revisions ITC Easier and smoother credit claims Refunds Faster & automated for eligible taxpayers Overall Neutral on cost, Positive on compliance ease 👉 In short: For engineering consultants, the GST rate remains the same (18%), but compliance becomes stricter yet smoother, with faster refunds and fewer disputes.

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