GST for Freelancers & Service Providers: Do You Need to Register?

Freelancers and service providers are often unsure whether GST applies to them. The short answer: it depends on your turnover and whether you serve clients in other states or abroad. Here's the clarity you need.

When must a freelancer register for GST?

• Turnover above ₹20 lakh/year (₹10 lakh in special category states) — mandatory.
• Inter-state services — historically mandatory from rupee one, though services have some relief; check your case.
• Selling through platforms that require GST — mandatory.

Export of services — the big advantage

If you bill foreign clients in foreign currency, it's an export of services — zero-rated under GST. File a Letter of Undertaking (LUT) once a year to export without charging GST, while still claiming input tax credit. This is a major cash-flow win for freelancers serving overseas clients.

Invoicing essentials

• Show your GSTIN, SAC code, and the correct GST rate (usually 18% for professional services).
• For exports under LUT, mark the invoice "Supply meant for export under LUT, without payment of IGST".

FAQs

Do I charge GST to Indian clients? If registered, yes — typically 18%.

Is freelancing income also taxed under income tax? Yes — see our ITR filing guide; many freelancers use presumptive taxation (44ADA).

Taxwapsi registers freelancers for GST, files your LUT, and manages monthly returns. Let's set it up.