Understand when you need a GSTIN, how to format tax invoices, SAC/HSN codes classification, and how to file returns. Enter your details to get your copy.
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GST (Goods and Services Tax) is a comprehensive indirect tax levied on the supply of goods and services across India. For freelancers, consultants, and independent contractors, understanding registration rules, applicable tax rates, invoice formats, and return filing systems is essential to avoiding penalties and running a compliant business from day one.
The first decision every freelancer faces is the registration threshold. Under current GST law, registration is mandatory only if your aggregate annual turnover from professional services exceeds ₹20 Lakhs (or ₹10 Lakhs if you operate in special-category North-Eastern hill states). If your turnover is below this limit, registration is optional — though voluntary registration lets you claim Input Tax Credit (ITC) on your business purchases.
Once registered, you must correctly classify your services. Most digital freelancers — including software developers, web designers, UI/UX consultants, content writers, and digital marketers — fall under SAC Code 9983 (Other professional, technical, and business services), taxed at 18% GST. For intra-state clients, this splits as 9% CGST + 9% SGST. For inter-state clients, the full 18% is charged as IGST.
If you work with foreign clients — a common scenario for Indian developers and designers — your service qualifies as an export of services, treated as a "Zero-rated supply." To bill at 0% GST without paying first and waiting for refunds, you must file a Letter of Undertaking (LUT) annually on the GST portal using Form GST RFD-11. This is a straightforward one-time filing per year and completely eliminates GST liability on international invoices.
Registration is mandatory if your total annual receipts exceed ₹20 Lakhs. Below that limit, GST registration is optional. Voluntary registration lets you claim ITC on business expenses like software subscriptions and equipment.
No. If you have filed a Letter of Undertaking (LUT) on the GST portal, you can declare the invoice as a "Zero-rated supply" and bill international clients at 0% GST. Without an LUT, you must charge 18% IGST and later claim a refund.
Registered service providers typically file GSTR-1 (outward supplies — monthly or quarterly) and GSTR-3B (monthly summary of tax payments and ITC claims). Most freelancers with turnover below ₹5 Crore qualify for the quarterly QRMP scheme.
Software development and IT consulting fall under SAC 998313 / SAC 9983, web design falls under SAC 998312, and content writing falls under SAC 998391.
Yes. Once GST registered, you can claim 100% ITC on GST paid for laptops, monitors, software subscriptions, office supplies, and internet bills against your tax liability.