GST for Freelancers in India: When You Must Register

The registration threshold

As a service provider you must register for GST once your aggregate turnover in a financial year crosses ₹20 lakh (₹10 lakh in special category states). 'Aggregate' means all your freelance income across India combined — not per client.

Below the threshold, registration is optional. Some freelancers register voluntarily anyway: it lets them claim input tax credit on business expenses and looks more established to corporate clients.

Foreign clients: export of services is zero-rated

Services delivered to clients outside India, paid in foreign currency, generally qualify as export of services — which is zero-rated, not exempt. That distinction matters: zero-rated means you charge 0% GST but can still claim input credit.

To invoice exports without charging IGST, file a Letter of Undertaking (LUT) on the GST portal — a simple online declaration, renewed each financial year. Without an LUT you would have to charge IGST and claim a refund later, which ties up cash.

What rate applies to freelance services

Most professional services — software development, design, writing, marketing, consulting — fall in the standard 18% slab. For an Indian client in another state you charge 18% IGST; for a client in your own state, 9% CGST + 9% SGST.

Invoices and returns

Once registered you must issue GST-compliant invoices — your GSTIN, the client's GSTIN (for B2B), SAC code, rate and the tax broken out — and file returns (GSTR-1 for sales, GSTR-3B for summary and payment). Smaller taxpayers can use the quarterly QRMP scheme to reduce filing frequency.

A composition-style scheme also exists for small service providers (6% up to ₹50 lakh turnover), but it bars you from claiming input credit and from inter-state supply, which rules it out for most freelancers with out-of-state or foreign clients.