GST for freelancers is one of the most searched questions among developers, designers, writers and consultants — especially when clients sit abroad. The answer depends on your turnover and the kind of clients you serve, not on whether you call yourself a freelancer or a consultant.
Key takeaways
- Service providers register once aggregate turnover crosses ₹20 lakh (₹10 lakh in some states).
- Foreign receipts count towards that turnover.
- Inter-state services do not force registration below the limit.
- Once registered, an LUT lets you export without charging IGST.
The GST registration limit for freelancers
Freelancers supply services, so registration becomes mandatory once aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in certain special category states). Aggregate turnover includes fees from Indian clients, receipts from foreign clients (export of services) and exempt services, if any. It excludes GST itself.
So a freelancer earning ₹15 lakh from foreign clients and ₹8 lakh from Indian clients has a turnover of ₹23 lakh and must register. Apply through GST registration before the 30-day clock runs out.
Do inter-state clients force registration?
No. Unlike suppliers of goods, service providers making inter-state supplies are exempt from registration until they cross the ₹20 lakh limit. A freelancer in Pune billing a client in Delhi does not need GST below the limit.
When is registration required regardless of turnover?
- If you supply services through an e-commerce operator that is required to collect TCS (with exemptions for small service providers under the threshold).
- If you supply OIDAR services from outside India to Indian consumers.
Most platforms such as Upwork or Fiverr do not by themselves make registration compulsory for Indian freelancers below the threshold, but they may ask for a GSTIN for their own compliance.
GST rate for freelancers
Most professional services, including IT, design, consulting and marketing, attract GST at 18%. On an invoice of ₹1,00,000 to an Indian client, you would charge ₹18,000 GST (CGST + SGST for the same state, IGST for another state).
GST on foreign clients: export of services
Services to foreign clients are zero-rated when all of these conditions are met:
- You are located in India and the client is outside India.
- The place of supply is outside India.
- Payment is received in convertible foreign exchange (or in INR where RBI permits).
- You and the client are not merely establishments of the same person.
You can export either by paying IGST and claiming a refund, or, more practically, by filing a Letter of Undertaking and exporting without paying GST. Read LUT under GST for export of services and LUT filing.
Benefits of GST registration for freelancers
- Claim input tax credit on laptops, software subscriptions, co-working rent and phone bills.
- Work with large Indian companies that prefer GST-registered vendors.
- Get refunds of accumulated credit on exports.
Compliance after registration
- Issue a tax invoice for Indian clients and an export invoice (with the LUT declaration) for foreign clients.
- File GSTR-1 and GSTR-3B monthly, or quarterly under QRMP if turnover is up to ₹5 crore — freelancer GST return filing covers this.
- Renew your LUT every financial year.
Invoicing Indian versus foreign clients
Indian clients: show GSTIN, place of supply, HSN/SAC and 18% CGST+SGST or IGST. Foreign clients under LUT: no IGST line, the LUT declaration on the invoice, and the foreign currency and equivalent INR. Raise the export invoice when the work is done, not when PayPal settles — the receipt in convertible foreign exchange is a separate condition you track in the bank advice.
Place of supply for consultants
For B2B services to a registered Indian client, place of supply is generally the client’s location. That decides CGST+SGST versus IGST. For an unregistered Indian client, it is usually the supplier’s location. Getting this wrong is how freelancers pay the same tax twice under the other head. Keep the client’s GSTIN on file before you invoice.
When optional registration still makes sense
Below the threshold, register if you buy laptops and software with GST and want that credit, if enterprise procurement teams refuse unregistered vendors, or if you are two or three invoices away from ₹20 lakh and do not want to scramble mid-month. Voluntary registration means the same GSTR-1 and GSTR-3B discipline as a mandatory one.
What to do this week
- Add Indian fees and foreign receipts from 1 April. If you are over ₹20 lakh, apply now.
- If you export and are already registered, file this year’s LUT before the next foreign invoice.
- Standardise two invoice templates: domestic tax invoice and export invoice.
Worked scenario
A designer in Jaipur invoices Indian startups ₹11 lakh and US clients ₹10 lakh in a year. Aggregate turnover is ₹21 lakh, so GST for freelancers is mandatory even though more than half the work is export. She registers, files an LUT, charges 18% on Indian invoices and nil IGST on US invoices, and claims credit on Adobe and Figma. A writer in Kochi with only ₹9 lakh of foreign fees stays unregistered unless a large Indian client insists on a GSTIN.
Related reading: how to get GST number online and LUT for export of services.
Frequently asked questions
I earn ₹12 lakh only from foreign clients. Do I need GST?
No. Your turnover is below ₹20 lakh, so registration is optional.
Can freelancers opt for the composition scheme?
Service providers with turnover up to ₹50 lakh can pay 6% under Section 10(2A), but exports are not allowed under composition, so most export-focused freelancers avoid it.
Is GST charged on payments received through PayPal?
If the conditions for export are met and you have an LUT, you charge no GST on the invoice.
Freelancer with growing income? Talk to a Filing360 CA about GST, LUT and monthly returns.
