GST worries a lot of freelancers, but the rules for a one-person service business are fairly simple. You may not need to register at all. If you do, you charge 18% to Indian clients, nothing to foreign clients (with the right paperwork), and file a couple of returns. Here's what applies to you and when.
Do you need to register?
For service providers, GST registration becomes compulsory when your aggregate turnover in a financial year crosses:
- ₹20 lakh in most states, or
- ₹10 lakh in special category states such as Manipur, Mizoram, Nagaland and Tripura.
You must apply within 30 days of crossing the limit. Below it, you don't charge GST and don't file GST returns, even if you work for clients in other states. Selling goods, or selling through certain e-commerce platforms, has different rules, but most freelancers only provide services.
What counts towards ₹20 lakh
| Income | Counts? |
|---|---|
| Fees from Indian clients | Yes |
| Export of services to foreign clients | Yes, even though GST on them is zero |
| Exempt services you provide | Yes |
| Salary from a job | No, salary isn't a supply under GST |
Exports push you over the limit
Meera earns ₹8 lakh from Indian clients and ₹14 lakh from a US agency. Her aggregate turnover is ₹22 lakh, so she must register, even though only ₹8 lakh of her work will carry GST. Once registered, she charges 18% on Indian invoices and files an LUT so her US invoices stay GST-free.
How much GST to charge
Most freelance work, including software, design, writing, consulting, marketing and photography for businesses, is taxed at 18%. The September 2025 rate changes mainly affected goods; 18% still applies to most professional services. Which GST you put on the invoice depends on where your client is:
| Client | Tax on invoice |
|---|---|
| Same state as you | CGST 9% + SGST 9% |
| Another Indian state | IGST 18% |
| Outside India (export) | 0%, under LUT |
A GST invoice, line by line
A tax invoice from a registered freelancer should show:
- Your name, address and GSTIN; the client's name, address and GSTIN (if registered).
- A unique, consecutive invoice number and the date.
- Description of the service and its SAC code (for example, 998314 for IT design and development).
- Place of supply (the client's state).
- Taxable value, GST rate and amount for each tax, and the total.
- For exports: "Supply meant for export under LUT without payment of IGST", and the LUT reference number.
₹1,00,000 fee to a client in your state
| Professional fee | ₹1,00,000 |
| CGST 9% | ₹9,000 |
| SGST 9% | ₹9,000 |
| Invoice total | ₹1,18,000 |
| Less TDS at 10% on the fee (not on GST) | − ₹10,000 |
| You receive | ₹1,08,000 |
You pay the ₹18,000 GST to the government (less any input tax credit), and claim the ₹10,000 TDS against your income tax.
Foreign clients: exports and LUT
Services to clients abroad are "zero-rated". Once registered, you can either pay IGST and claim a refund, or, much simpler, file a Letter of Undertaking (LUT) and invoice without GST. Your work counts as an export when:
- You are in India and the client is outside India.
- The place of supply is outside India (true for most remote services to a foreign business).
- You're paid in foreign currency, or in rupees where RBI allows it.
- The client isn't simply another branch of your own business.
File the LUT online on the GST portal (form RFD-11) at the start of each financial year; it's free and usually approved instantly. Keep the bank's foreign inward remittance advice or e-BRC for each payment as proof.
Paid through a platform like Upwork or via PayPal? It is generally still an export if the client is abroad and money arrives in foreign exchange. Keep the platform statement with the bank advice.
Returns and deadlines
| Return | What it is | When |
|---|---|---|
| GSTR-1 | Details of your invoices | Monthly by the 11th, or quarterly under QRMP by the 13th after the quarter |
| GSTR-3B | Summary and tax payment | Monthly by the 20th, or quarterly (22nd/24th, by state) under QRMP |
| GSTR-9 | Annual return | Made optional for recent years (by CBIC notification) if turnover is up to ₹2 crore; check the notification for the year |
Under QRMP (for turnover up to ₹5 crore) you file quarterly but pay tax monthly in the first two months of the quarter. You must file returns even for a month with no income ("nil" returns); late filing attracts a daily late fee.
Input tax credit
Once registered, you can subtract GST you paid on business purchases from the GST you collect. For a freelancer that typically means a laptop, software subscriptions, co-working fees, a business phone plan and professional services. The supplier must have uploaded the invoice with your GSTIN, so give it every time you buy. If most of your income is exports, unused credit can be claimed as a refund.
Should you register voluntarily?
You can register below ₹20 lakh. It's worth considering if:
- Your clients are mostly businesses that can claim your GST back, so it doesn't cost them anything.
- Large clients or platforms insist on a GSTIN before onboarding vendors.
- You buy expensive equipment and want the input tax credit.
It's usually not worth it if your clients are individuals (GST makes you 18% more expensive) or if the monthly compliance would cost more than it saves. Remember that registration brings filing obligations every month or quarter, even when there's nothing to report.
GST is separate from income tax. For income tax on the same earnings, see the freelancer income tax guide.
Freelancer Hourly Rate CalculatorSet a rate that covers GST, tax and your time off.Frequently asked questions
Is GST registration mandatory for freelancers?
Only when your aggregate turnover in a financial year crosses ₹20 lakh, or ₹10 lakh in special category states such as Manipur, Mizoram, Nagaland and Tripura. Below that, registration is optional.
Does income from foreign clients count towards the ₹20 lakh limit?
Yes. Export of services is included in aggregate turnover even though it is zero-rated. A freelancer earning mostly from abroad can cross the limit without charging any GST.
What is the GST rate for freelance services?
Most freelance and professional services are taxed at 18%: CGST 9% plus SGST 9% for clients in your state, or IGST 18% for clients in other states. Exports are zero-rated.
Do I charge GST to foreign clients?
No, if you are registered and have filed a Letter of Undertaking (LUT) for the year and the work qualifies as an export. Mention the LUT on the invoice. Without an LUT you would have to pay IGST and claim a refund.
Is TDS deducted on the GST part of my invoice?
No, as long as GST is shown separately on the invoice. TDS is worked out on the fee before GST.
Can a freelancer use the GST composition scheme?
Service providers with turnover up to ₹50 lakh can choose a composition scheme at 6%, but they cannot claim input tax credit, cannot collect GST from clients, and cannot supply services to other states or abroad. Most freelancers with out-of-state or foreign clients cannot use it.
What happens if I cross ₹20 lakh and do not register?
You can be asked to pay the GST you should have charged, from your own pocket, plus interest and a penalty. Apply within 30 days of crossing the limit.
Can I cancel my GST registration if my income falls?
Yes. If your turnover drops below the threshold, you can apply to cancel the registration on the GST portal after filing pending returns.