Telangana GST Invoicing Rules & Hyderabad Tech Ecosystem
Telangana, driven by the massive technology, pharmaceutical, and defense innovation hub of Hyderabad (HITEC City, Gachibowli, Madhapur), maintains a distinct state tax administration. Following the state bifurcation in 2014, Telangana was assigned the distinct GST state code 36 (while residual Andhra Pradesh retained state code 37).
Intra-State vs Inter-State Tax Splits
- Intra-State (Within Telangana): Transactions where both provider and client are in Telangana (e.g. Hyderabad to Warangal) attract 9% CGST + 9% SGST.
- Inter-State (Outside Telangana): Billing clients in Andhra Pradesh (code 37), Karnataka (code 29), or Maharashtra (code 27) requires 18% IGST. Crucially, billing an Andhra Pradesh entity is legally inter-state and requires IGST.
Telangana Monthly Professional Tax Schedule
Unlike Tamil Nadu's half-yearly framework, Telangana levies Professional Tax on a monthly basis under the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987:
- Monthly salary/income up to ₹15,000: Nil
- ₹15,001 to ₹20,000: ₹150 per month
- Above ₹20,000: ₹200 per month (capped at ₹2,500 annually).
Self-employed freelance consultants in Hyderabad earning taxable income must obtain a Certificate of Enrolment (PT EC) and remit their annual professional tax directly to the Commercial Taxes Department.
Commercial Taxes Department & Portal
Telangana State GST compliance and professional tax registration are administered through the Telangana Commercial Taxes Department via tgct.gov.in.