GST for Freelancers — Registration, Rates & Exports
Freelancers and independent professionals often ask whether they need to charge GST. The answer depends on turnover, the type of service, and whether clients are in India or abroad. This guide explains when a freelancer must register for GST, the rate, and how exports are treated. (Confirm current thresholds/rates before acting.)
When must a freelancer register for GST?
A freelancer providing services must register for GST once aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in some special-category states). Registration is also required earlier in certain cases — for example, providing services through an e-commerce operator, or making inter-state B2B supplies (note: a threshold exemption exists for inter-state services up to the ₹20 lakh limit).
What rate do freelancers charge?
Most freelance/professional services (IT, design, consulting, writing, marketing) attract GST at the standard 18% rate. The freelancer adds 18% GST on invoices to Indian clients, collects it, and pays it after claiming input tax credit on eligible business expenses.
Freelancing for foreign clients — exports
Services provided to a client outside India, where payment is received in convertible foreign exchange and other conditions are met, generally qualify as an export of services — a zero-rated supply. You can either export under a Letter of Undertaking (LUT) without paying IGST, or pay IGST and claim a refund. Registration may still be required, but the outward supply is zero-rated.
Composition scheme option
Small service providers may opt for the composition scheme for services (up to the prescribed turnover) and pay tax at a lower flat rate without ITC — useful for purely domestic small freelancers. Evaluate whether regular (with ITC) or composition suits you.
Frequently asked questions
Do freelancers need GST registration?
Once aggregate turnover exceeds ₹20 lakh (₹10 lakh in special-category states), or earlier in specified cases such as supplying through an e-commerce operator.
What GST rate do freelancers charge?
Most professional/freelance services are taxed at 18%.
Is GST payable on income from foreign clients?
Services to foreign clients meeting export conditions are zero-rated; you can supply under LUT without IGST or pay and claim refund.
Freelancer needing GST set up right? TAXAJ handles registration, LUT, invoicing and returns for freelancers. Get GST-ready with TAXAJ →
Related guides: GST registration · LUT for exports · Presumptive tax for professionals
