GST in Gurgaon: CGST, Haryana SGST, and IGST — FY 2025-26 Guide
Goods and Services Tax (GST) in Gurgaon, Haryana operates under a dual structure administered jointly by the Government of India and Haryana state government. Whether you are a business owner in the Cyber Hub / DLF Cyber City area, a consumer buying services inGurgaon, or a freelancer invoicing clients across India, the applicable GST component — CGST + Haryana SGST or IGST — depends on whether the supply is intra-state or inter-state. Haryana has zero professional tax — Gurgaon professionals save Rs 2,500/year vs Mumbai counterparts. With India's highest average salary (Rs 15 lakh/year), Gurgaon's per-capita income tax contribution is the highest of any single city in India. Yet Gurgaon is non-metro for HRA — despite being part of NCR, it doesn't qualify for the 50% HRA exemption that Delhi residents get.
CGST vs Haryana SGST vs IGST: How It Works in Gurgaon
The fundamental rule:
- Intra-state supply (supplier and recipient both in Haryana): GST = CGST (central government) + Haryana SGST (Haryana government), each at half the total GST rate. On a Rs 1,00,000 invoice at 18%: CGST Rs 9,000 (9%) + Haryana SGST Rs 9,000 (9%).
- Inter-state supply (supplier in Haryana, recipient in another state, or vice versa): GST = IGST at the full rate. Same Rs 1,00,000 invoice at 18%: IGST = Rs 18,000 (18%), all to central government (then apportioned to destination state).
- Import of services: IGST under Reverse Charge Mechanism (RCM) — the recipient in Gurgaon pays GST to the government. Common for Gurgaon's businesses using foreign software, cloud services, or overseas consultants.
GST Rates Applicable to Gurgaon's Economy
The four main GST rate slabs apply uniformly across Gurgaon:
- 5% GST: Essential goods and basic services. For Gurgaon: non-AC restaurant meals (no ITC for restaurant), economy hotel stays (room rate below Rs 7,500/night), packaged foods with certain HSN codes, economy air travel (excluding fuel surcharge), electric vehicles, and textile goods below Rs 1,000.
- 12% GST: Mid-range goods and services. Relevant for Gurgaon: hotel stays Rs 7,500–12,000/night, processed food, computers and laptops (with exceptions), smartphones above Rs 20,000 category, business class air travel, construction of affordable housing.
- 18% GST: Most services and manufactured goods. This is the dominant GST rate for Gurgaon's IT/ITES sector — IT services, consulting, financial services, insurance (excl. life insurance), telecom, steel, chemicals, paints, AC restaurants, hotel stays above Rs 12,000/night.
- 28% GST: Luxury and demerit goods. Gurgaon: automobiles (plus cess), luxury hotels, tobacco products, gambling and racing activities, luxury cement. Plus additional cess on many 28% items.
IT/ITES Sector GST in Gurgaon
Gurgaon's dominant IT/ITES sector — represented by employers like Google, Deloitte, American Express — operates primarily under 18% GST for domestic B2B service invoices. Key GST considerations for Gurgaon IT businesses:
- Software services export (zero-rated): IT exports from Gurgaonto overseas clients are zero-rated with a Letter of Undertaking (LUT). No GST is charged on the invoice, and businesses can claim refund of Input Tax Credit on inputs used. Filing monthly LUT for exports is critical for Gurgaon IT exporters.
- Domestic IT B2B invoices: 18% GST applies. On a Rs 10L monthly invoice to a Haryana client: CGST Rs 90,000 + Haryana SGST Rs 90,000 = Rs 1.8L total GST. This is fully recoverable as Input Tax Credit by the recipient if they are GST-registered.
- SaaS and software products: 18% GST on perpetual licences, 12% on some packaged software. Cloud-based SaaS services are 18% regardless of how subscription is structured.
- Professional and consulting services: 18% GST under SAC 9983/9985. Freelancers and consultants in Gurgaon billing above Rs 20L/year must register for GST and charge 18% CGST + Haryana SGST on domestic invoices.
- Commercial property rent: If annual commercial rent in Gurgaonexceeds Rs 20L and the landlord is a GST-registered entity, 18% GST applies. At estimated commercial rents of Rs 80,000/month in Gurgaon, annual commercial rent is Rs 9,60,000. Annual commercial rent is below Rs 20L — GST on rent may not apply if the landlord is under threshold.
Input Tax Credit (ITC) for Gurgaon Businesses
GST-registered businesses in Gurgaon can claim Input Tax Credit on GST paid for goods and services used in their business. ITC rules in Haryana:
- CGST paid can offset CGST or IGST liability; Haryana SGST paid can offset Haryana SGST or IGST; IGST can offset any GST liability (IGST first, then CGST, then SGST).
- Conditions for ITC: Valid tax invoice, goods/services received, GST filed by supplier (reflected in GSTR-2B), and payment made to supplier within 180 days.
- ITC blocked items: Motor vehicles (for personal use), employee-related food and beverages, club memberships, health insurance for employees (unless mandatory under law), works contract for immovable property.
- ITC reconciliation: GSTR-2B (auto-populated) vs your purchase register must be reconciled monthly. Mismatch can lead to ITC disallowance and penalty — a critical compliance task for Gurgaon's MSMEs and large businesses alike.
GST Registration Threshold and Compliance for Gurgaon
GST registration is mandatory in Haryana when aggregate turnover exceeds:
- Rs 40 lakh/year for goods suppliers (Rs 20L for special category states — not applicable to Haryana).
- Rs 20 lakh/year for service providers.
- Any threshold for inter-state supplies, e-commerce operators, or businesses with taxable supplies despite low turnover.
Gurgaon freelancers and consultants in the IT/ITES sector who provide services to clients in other states must register for GST irrespective of turnover — even a single inter-state invoice triggers mandatory registration. Return filing: GSTR-1 (monthly/quarterly for outward supplies) + GSTR-3B (monthly summary + tax payment) + GSTR-9 (annual reconciliation). Businesses in Gurgaon with turnover above Rs 5 crore must file GSTR-1 monthly. Below Rs 5 crore, quarterly GSTR-1 filing is available under the QRMP scheme.
Composition Scheme: For Small Gurgaon Businesses
Small Gurgaon businesses with annual turnover below Rs 1.5 crore (goods) or Rs 50 lakh (services) can opt for the Composition Scheme — pay a fixed percentage of turnover as GST (1% for goods, 6% for services including restaurants) without ITC. Composition dealers cannot raise a tax invoice or collect GST from customers, and cannot supply inter-state. This suits small retailers, restaurants, and service providers inGurgaon's Golf Course Road and Sohna Road local markets who do primarily local business.
Disclaimer
GST rates and rules are based on notifications effective as of FY 2025-26. Specific HSN/SAC codes may attract different rates. Special economic zone (SEZ) supplies are zero-rated. E-invoicing is mandatory above certain turnover thresholds. Consult a GST practitioner or Chartered Accountant in Gurgaon for business-specific compliance guidance.