A freelancer or consultant must register for GST once aggregate turnover exceeds Rs.20 lakh in a financial year (Rs.10 lakh in special-category states). Domestic professional services are taxed at 18%, while services exported to foreign clients are zero-rated and can be supplied under LUT without charging GST.
Registration threshold
For service providers, GST registration is required when aggregate turnover crosses Rs.20 lakh (Rs.10 lakh in specified special-category states). 'Aggregate turnover' is computed PAN-level and all-India, including exempt and export turnover. Voluntary registration is also possible below the threshold — useful when clients want a tax invoice for ITC.
Rate and invoicing
Most professional and consultancy services attract GST at 18%. A registered freelancer issues a tax invoice with GSTIN, SAC code, and the place of supply, and files GSTR-1 and GSTR-3B. Place of supply decides IGST vs CGST+SGST — for a registered client in another State, charge IGST.
Exporting services
Services to foreign clients that meet the five export conditions are zero-rated. File an LUT (Form RFD-11) and invoice without GST, then claim a refund of input tax credit, or pay IGST and claim it back. Keep FIRC/BRC evidence of foreign-exchange receipt. See export of services.
Reverse charge and common slips
- Importing tools/subscriptions from abroad (e.g. SaaS) attracts IGST under reverse charge.
- Legal fees to an advocate attract RCM in the recipient's hands.
- Once registered, file nil returns even in lean months to avoid late fee.
- Do not forget the LUT renewal each financial year if you export.
Registration triggers you cannot ignore
The Rs.20 lakh services threshold (Rs.10 lakh in special-category states) is only the headline rule. For services, inter-state supply below the threshold does not force registration (Notification 10/2017-IGST exempts it — a point widely misunderstood), but platform-based supply through TCS-collecting e-commerce operators (Section 52) and any reverse-charge liabilities change the analysis. And once you cross Rs.20 lakh of aggregate turnover — which includes exempt and export income — registration is due within 30 days.
| Freelancer profile | GST position |
|---|---|
| Designer, Rs.15L, all Indian clients | No registration required (below threshold) |
| Developer, Rs.15L, foreign clients only | No registration required — but registering enables LUT export benefits and ITC refunds |
| Consultant, Rs.25L mixed clients | Register; domestic invoices at 18%; exports zero-rated under LUT |
| Content creator on YouTube/AdSense | Google AdSense income = export of service (recipient outside India); zero-rated with LUT once registered |
Export of services: the five-condition test
Foreign-client income is zero-rated only if all Section 2(6) IGST Act conditions hold: supplier in India, recipient outside India, place of supply outside India, consideration in convertible foreign exchange (or INR where RBI-permitted), and supplier and recipient are not merely establishments of the same person. The trap is place of supply: for most consulting it is the recipient's location (Section 13(2)), but intermediary services — brokering between a foreign principal and Indian customers — are deemed supplied in India and taxed at 18%. Distinguish "I advise the foreign client" from "I arrange deals for the foreign client".
- File the LUT (RFD-11) before the first zero-rated invoice each financial year — exporting without an LUT technically requires paying IGST and claiming refund.
- Collect FIRC/e-FIRA for every remittance (PayPal/Wise provide these) — they are the refund evidence.
- Claim ITC refunds on laptop, software and co-working GST via RFD-01 (accumulated ITC on zero-rated supplies) — money most freelancers leave on the table.
Invoicing, RCM and the compliance load
A registered freelancer's realistic annual load: monthly or QRMP returns (GSTR-1 + 3B), the LUT renewal, and RCM self-invoicing where you import services — foreign SaaS subscriptions (hosting, design tools) are import of services under RCM: pay 18% IGST in cash and claim it back as ITC in the same period. Keep invoice numbering sequential, quote the client's GSTIN for B2B domestic bills, and mention the LUT on export invoices ("Supply meant for export under LUT without payment of IGST"). On the income-tax side, Section 44ADA presumptive taxation (50% of receipts up to Rs.75 lakh where cash receipts are within 5%) pairs well with GST registration — the two regimes are independent. Verify thresholds at gst.gov.in.
A one-page annual compliance calendar for a registered freelancer
| When | What |
|---|---|
| Late March | Renew LUT (RFD-11) for the new financial year |
| Monthly (or QRMP) | GSTR-1 by the 11th (13th IFF), GSTR-3B by the 20th; RCM on foreign SaaS in the same 3B |
| Quarterly | Advance tax instalments (or single 15 March instalment under 44ADA) |
| Ongoing | FIRC/e-FIRA collection for each export remittance; sequential invoice register |
| Periodically | RFD-01 refund claims for accumulated ITC on zero-rated supplies (two-year limitation) |
| December | GSTR-9 if turnover above Rs.2 crore |
Two closing cautions. Platform income routed through foreign marketplaces (Upwork, Fiverr) usually still qualifies as export — the recipient of your service is the foreign client or platform — but read the platform agreement to identify who your contractual recipient is, since it drives the place-of-supply and intermediary analysis. And if a client deducts GST TDS under Section 51 (government contracts) or the platform collects TCS under Section 52, those credits appear in your cash ledger via auto-population — claim them; unclaimed Section 52 TCS is another routinely abandoned amount.
Key takeaways
- Register once turnover crosses Rs.20 lakh (Rs.10 lakh special states).
- Domestic professional services: 18%; exports: zero-rated under LUT.
- Place of supply decides IGST vs CGST+SGST for each client.
- Imported subscriptions attract IGST under reverse charge.