GST refund consultants typically charge under one of two models: percentage-based (contingency) or fixed fee. Each model has advantages and disadvantages for the client.
This article explains both models.
Percentage-Based (Contingency) Model
Under this model, the consultant charges a percentage of the refund recovered — typically 5% to 15%.
Advantages:
- No upfront cost.
- Consultant is incentivised to maximise recovery.
Disadvantages:
- Higher total cost for large refunds.
- Consultant may not take up low-value refunds.
- Potential conflict if the refund is partially disallowed.
Fixed Fee Model
Under this model, the consultant charges a fixed fee for the refund engagement.
Advantages:
- Predictable cost.
- Consultant is not incentivised to inflate the refund.
Disadvantages:
- Upfront cost.
- Consultant may not pursue the refund aggressively.
Which Model Is Better?
- Large refunds: Fixed fee is usually more cost-effective.
- Small refunds: Percentage-based may be the only viable option.
- Complex refunds: Fixed fee with a success fee component.
What the Fee Covers
- Eligibility review.
- Documentation preparation.
- RFD-01 filing.
- Deficiency memo response.
- Follow-up and escalation.
Conclusion
The choice between percentage-based and fixed fee depends on the size and complexity of the refund. A transparent fee structure is essential.
At Anuj Desai & Associates, we provide flexible GST refund consultancy fee models. Our team handles eligibility review, documentation, filing, and follow-up.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.