GST Regulations Checklist for Independent Contractors
Freelancers in India must understand the GST framework to avoid penalties and optimize tax filings.
- Threshold Limit: If domestic service revenues remain below ₹20 Lakhs in a fiscal year, GST registration is optional.
- Inter-state Sales: Under updated GST guidelines, service providers with turnover under ₹20 Lakhs are exempt from registration even if supplying services across state borders.
- LUT exports: Working for foreign clients is tax-free (0% GST) if you submit a Letter of Undertaking (LUT) online.