Real estate consultants, brokers, and property dealers in Jaipur and across Rajasthan often ask the same seven questions: Do I need GST? What's the rate, which ITR form, which TDS section, is it mandatory, how much tax, and how do I register? This guide answers all seven directly.

Real estate consultants need GST registration once annual turnover crosses ₹20 lakh (₹10 lakh in special category states). The GST rate is 18%. Commission income must be filed under ITR-3, not any presumptive scheme. TDS is 2% under Section 194H for commission, or 10%/2% under Section 194J for consultancy fees.

Who Is A Real Estate Consultant?

Definition: A real estate consultant is anyone who earns income from property transactions, either as a commission on a deal (broker, agent, channel partner) or as a fixed fee for advisory work (valuation, market research). The two are taxed differently, which matters more than the job title.

When Is GST Registration Required?

• Annual turnover exceeds ₹20 lakh (₹10 lakh in special category states like the NE states, Uttarakhand, Himachal Pradesh)
• You provide inter-state service, regardless of turnover
• Voluntary registration is allowed below the threshold, mainly to claim Input Tax Credit and build credibility with builders

GST Registration Limits

GST Rate

GST Registration Process

1. File Form REG-01 on the GST portal
2. Verify via Aadhaar OTP (fastest) or DSC
3. Upload documents and get an ARN
4. GSTIN issued after verification

Registration takes 3–7 working days with Aadhaar e-KYC and up to 30 days if physical verification is required. There's no government fee; you only pay if a CA files it for you.

Required Documents

• PAN and Aadhaar card
• Photograph
• Business address proof (rent agreement/electricity bill)
• Bank account proof
• Partnership deed, if applicable

GST Invoice & Calculation Example

Example: Property deal value ₹1 crore, commission 1% = ₹1,00,000.

GST Return Filing

• GSTR-1: 11th of every month (13th under QRMP)
• GSTR-3B: 20th of every month (22nd/24th under QRMP)
• GSTR-9: Annual return, 31 December, if turnover exceeds ₹2 crore

Late fee: ₹50/day for returns with tax due, ₹20/day for NIL returns, capped by turnover slab.

ITR Rules

Genuine fee-based advisory income (not tied to a specific deal) may qualify for Section 44AD as a business, on a case-by-case basis; confirm this with your CA rather than assuming it applies.

ITR Form Selection

TDS Rules: 194H vs 194J

Check Form 26AS/AIS every year to confirm which section your client actually applied. A mismatch here is a common reason for notices.

Income Tax Slabs (FY 2025-26 / AY 2026-27)

New tax regime rates:

Section 87A gives a rebate up to ₹12 lakh of taxable income. Note: the ₹75,000 standard deduction applies only to salaried/pension income, not to business or professional income.

Compliance Checklist

• GSTIN displayed on invoices
• Correct SAC code for commission vs consultancy
• GSTR-1 and GSTR-3B filed on time
• TDS section verified against Form 26AS/AIS
• Books of accounts maintained (mandatory once income crosses Section 44AA limits)
• Advance tax paid quarterly

Common Mistakes to Avoid

• Assuming "consultant" in the title means 44ADA applies automatically
• Filing 44AD for commission income (it's excluded, regardless of turnover)
• Wrong SAC code on invoices
• Not reconciling TDS section before filing ITR
• Skipping books of accounts because commission income "feels small"

Conclusion

GST registration, rate, and TDS section for a real estate consultant all come down to one thing: is the income commission or a fixed fee. Commission means 18% GST once you cross ₹20 lakh, 2% TDS under 194H, and ITR-3; no shortcuts. Fee-based advisory has more room to discuss with a CA, but still isn't automatically eligible for 44AD/ADA.

Frequently Asked Questions (FAQs)