# GST for Freelancers in India: Registration, LUT, Invoices > When freelancers must register for GST, how exports are zero-rated under a LUT, what a GST invoice must show, and the returns you file afterwards. Source: https://trykosh.com/learn/gst-for-freelancers Guide - GST # GST for freelancers: when to register and how it works GST worries freelancers more than it should. Below INR 20 lakh a year you usually needn't register, exports carry no GST, and Indian business clients can claim back what you charge. Here are the rules that matter and the routine once you're registered. Updated 25 October 20266 min readBy the Kosh team On this page[Do you need to register?](#registration)[What rate and which tax](#rate)[Exports of services: zero-rated under a LUT](#exports)[What a GST invoice must show](#invoice)[The routine once you're registered](#routine)[Worked example: the first year over INR 20 lakh](#worked-example)[How GST fits with income tax](#income-tax)[FAQs](#faq) ## Do you need to register? A freelancer supplying services must register for GST once **aggregate turnover crosses INR 20 lakh in a financial year**, or INR 10 lakh in a few special-category states such as Manipur, Mizoram, Nagaland and Tripura. Four points people miss: - **Aggregate turnover is PAN-wide.** It adds up all your supplies across India under one PAN: taxable, exempt and **exports**. A freelancer billing INR 25 lakh entirely to clients abroad has crossed the line. - **It's the turnover, not the profit.** INR 20 lakh of invoices means registration, even if half went on expenses. - **Register within 30 days** of crossing the threshold, on the [GST portal](https://www.gst.gov.in/). You'll need PAN, Aadhaar, a bank account, proof of your work address and a photo. - **Voluntary registration is allowed.** Some freelancers register early because their business clients prefer GST invoices, or to claim input tax credit. Once registered, you have to charge GST and file returns even when turnover is low. ## What rate and which tax Most professional, IT, design, consulting and creative services are taxed at **18%**. The services are classified by SAC code, which goes on your invoice; check the one that fits your work. Who receives the tax depends on where the client is. GST on a INR 1,00,000 invoice for professional services Client Tax Invoice total Business in your own state CGST INR 9,000 + SGST INR 9,000 INR 1,18,000 Business in another state IGST INR 18,000 INR 1,18,000 Client outside India (export under LUT) No GST INR 1,00,000 (in foreign currency) For a registered business client, the GST you charge isn't a cost: they claim it back as input tax credit. For an individual client, it is a real 18% increase, which is worth explaining before you quote. The [GST calculator](/tools/gst-calculator) splits any amount into CGST, SGST or IGST. ## Exports of services: zero-rated under a LUT Work for clients abroad is an **export of services** when all of these hold: you're in India, the client is outside India, the place of supply is outside India, you're paid in convertible foreign exchange (or in rupees where RBI allows), and you and the client aren't just two offices of the same person. Exports are **zero-rated**: no GST is payable, but you can still claim credit for GST on your costs. 1. **File a LUT (Letter of Undertaking)** on the GST portal before you start exporting each financial year. It's a short online form, free, and approved almost at once. 2. **Invoice without GST**, with the line "Supply meant for export under LUT without payment of IGST". 3. **Receive payment in foreign exchange** within the permitted time and keep the bank's remittance advice. If payment doesn't arrive in time, the supply can lose its export status. 4. **Report it** in your GST returns as a zero-rated supply. Without a LUT, you'd have to charge IGST on the export and then claim it back as a refund, which ties up 18% of your billing for months. ## What a GST invoice must show - Your name, address and GSTIN. - A unique, consecutive invoice number for the financial year (up to 16 characters) and the date. - The client's name and address, and their GSTIN if registered. - A description of the service and its SAC code. - The taxable value, the GST rate, and the CGST and SGST or IGST amounts. - The place of supply (state), for supplies within India. - For exports, the LUT line above and the currency. - Your signature, physical or digital. Issue the invoice within 30 days of completing the service. The [GST invoice generator](/tools/gst-invoice-generator) produces a compliant invoice with the tax split worked out. [Free tool**GST calculator**Add GST to a price or strip it out of one, at the slabs in force since 22 September 2025. You also see how the tax splits between CGST and SGST, or goes as IGST to another state.](/tools/gst-calculator)[Free tool**GST invoice generator**Make a clean tax invoice in your browser: fill in your details and your buyer's, add up to ten items, and print it or save it as a PDF. Nothing is uploaded; the invoice is built on your device.](/tools/gst-invoice-generator)[Free tool**Reverse GST calculator**Start from a price that already includes GST, such as an MRP, a quote or a bill, and find the taxable value and the tax inside it. It's the number you need for input tax credit claims and for pricing.](/tools/reverse-gst-calculator)[Free tool**GST late fee calculator**Work out the late fee on a GST return filed after its due date, with the reduced per-day rates and caps that apply to small businesses and nil returns.](/tools/gst-late-fee-calculator)[Free tool**GST interest calculator**Work out the interest you owe when GST is paid after the due date, or when input tax credit was wrongly claimed and used. Interest runs day by day at 18% a year.](/tools/gst-interest-calculator) ## The routine once you're registered - **GSTR-1** reports your invoices; **GSTR-3B** summarises tax and is where you pay. Freelancers with turnover up to INR 5 crore can file quarterly under the QRMP scheme, paying tax monthly. - **Claim input tax credit** on GST you pay on work costs (a laptop, software subscriptions, coworking, a CA's fee), as long as the supplier's invoice shows in your GSTR-2B. A INR 1,18,000 laptop carries INR 18,000 of credit that reduces the GST you pay over. - **File nil returns** in months with no billing. Skipping them still attracts a late fee. - **Late fees and interest:** INR 50 a day (INR 20 for nil returns) per return up to a cap, plus 18% a year interest on tax paid late. Use the [GST late fee calculator](/tools/gst-late-fee-calculator). - **Annual return:** GSTR-9 is optional for small taxpayers below the notified turnover; check the current limit on the portal. ## Worked example: the first year over INR 20 lakh Riya is a designer in Bengaluru who bills INR 2 lakh a month to companies in Karnataka from April. Her running total reaches INR 20 lakh with the January invoice and crosses it in February. Here's what happens: 1. **February:** turnover passes INR 20 lakh. She applies for registration within 30 days and gets her GSTIN. 2. **From registration:** each INR 2,00,000 invoice now carries INR 18,000 CGST and INR 18,000 SGST, a total of INR 2,36,000. Her business clients claim the INR 36,000 back as input tax credit, so it costs them nothing. 3. **Input tax credit:** she buys a INR 1,18,000 laptop with INR 18,000 of GST on the invoice. That INR 18,000 is set off against the GST she owes for the period. 4. **Returns:** she opts for quarterly filing under QRMP, pays GST monthly, and files GSTR-1 and GSTR-3B each quarter. 5. **Next April:** her turnover will cross INR 20 lakh again, so she stays registered and charges GST from the first invoice of the year. If one of her clients were a private individual, the 18% would be a real cost to them. Quote clearly whether your rate is before or after GST. ## How GST fits with income tax GST you collect isn't your income; it's held for the government. Keep it in a separate account if that helps. For the presumptive scheme, your gross receipts are normally counted without the GST. Income tax returns for non-audit business and professional income are due by 31 August after the Finance Act 2026; GST returns run on their own monthly or quarterly calendar. See the [freelancer tax guide](/learn/freelancer-tax-guide-india) for the income-tax side and check notified dates on the [income-tax portal](https://www.incometax.gov.in/). **What about the composition scheme?** There's also a composition option for very small service providers at a lower rate, but it comes with restrictions, including no input tax credit and limits on whom you can supply to. Most freelancers with clients in other states or abroad find it doesn't fit. ## Frequently asked questions Is GST registration mandatory for freelancers? Yes, once your aggregate turnover crosses INR 20 lakh in a financial year, or INR 10 lakh in a few special-category states. Aggregate turnover includes exports of services, so a freelancer working only for foreign clients can still need to register. Do freelancers charge GST on foreign clients? No, if the work qualifies as an export of services and you have filed a Letter of Undertaking for the year. The invoice is issued without GST and says the supply is under LUT. Without a LUT you would pay IGST and claim a refund. What is the GST rate for freelancers? Most professional, IT, consulting, design and creative services are taxed at 18%. Within your state it is split into 9% CGST and 9% SGST; for clients in another state it is 18% IGST. Can I register for GST below INR 20 lakh? Yes, voluntary registration is allowed. It helps if business clients prefer GST invoices or you want input tax credit, but you must then charge GST and file returns every period, including nil returns. Is GST collected part of my income for income tax? No. GST you collect is owed to the government and is not your income. Under the presumptive scheme, gross receipts are normally counted excluding GST. ## Sources - [GST portal](https://www.gst.gov.in/) - [CBIC GST portal](https://cbic-gst.gov.in/) - [Income Tax Department](https://www.incometax.gov.in/) Written by the Kosh team and checked against the rules in force on 25 October 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting. ## Upload your statement and Kosh does this for you. Kosh reads your bank and card statements, works out your tax under both regimes and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-gst-for-freelancers)