Last updated: 24 September 2026
A freelancer needs GST registration once aggregate turnover in a financial year crosses ₹20 lakh (₹10 lakh in Manipur, Mizoram, Nagaland and Tripura), and that total includes income from overseas clients. Clients in other Indian states do not force registration below the limit. Above it, foreign work can be zero-rated only if it meets every export-of-services condition.
This guide works through the registration test first, then the export conditions, the LUT and invoice paperwork, and the returns that follow.
Key facts on GST for freelancers
Point | Current position |
|---|---|
Threshold for services | ₹20 lakh aggregate turnover a year; ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura (Section 22, CGST Act) |
Foreign income | Counts towards aggregate turnover, which includes exports (Section 2(6), CGST Act) |
Clients in other states | No compulsory registration below the threshold (Notification No. 10/2017-Integrated Tax) |
Work sold through platforms | Service suppliers via e-commerce operators exempt below the threshold (Notification No. 65/2017-Central Tax), except notified Section 9(5) services |
Export of services | Zero-rated only if all five conditions in Section 2(6) of the IGST Act are met |
Exporting without paying IGST | File an LUT in RFD-11 for the financial year (Rule 96A) |
Does a freelancer need GST registration?
Add up everything you earn from taxable and exempt services in the financial year, including exports, across India on your PAN. If the total crosses ₹20 lakh, or ₹10 lakh if you operate from Manipur, Mizoram, Nagaland or Tripura, register within 30 days. The detail on thresholds is in our guide to the GST registration turnover limit.
The inclusion of exports catches many freelancers. A designer earning ₹14 lakh from a US client and ₹8 lakh from Indian clients has ₹22 lakh of aggregate turnover and must register, even though most of the income may be zero-rated.
Does a client in another Indian state force registration?
No. An inter-state supply normally triggers compulsory registration under Section 24, but Notification No. 10/2017-Integrated Tax exempts persons making inter-state supplies of taxable services whose aggregate turnover is within ₹20 lakh, with a lower ₹10 lakh limit in special category states. Check the lower limit if you work from the north-east or a hill state.
Freelancer decision table
Your situation | GST position |
|---|---|
Total income up to ₹20 lakh, clients in India (any state) | Registration not required; voluntary registration is optional |
Total income up to ₹20 lakh, some clients overseas | Registration not required under Notification No. 10/2017-Integrated Tax |
Total income above ₹20 lakh, all clients in India | Register; charge GST at the rate for your service |
Total income above ₹20 lakh, overseas clients | Register; test each overseas contract against the export conditions below |
Mostly GST-registered Indian clients, below ₹20 lakh | Consider registering voluntarily; clients can claim your GST as ITC |
The last row is a commercial choice rather than a legal one. Our guide to voluntary GST registration has a worksheet for it.
Is every foreign-client invoice an export?
No. Under Section 2(6) of the IGST Act, a supply is an export of services only if all five conditions hold: you are located in India, the recipient is located outside India, the place of supply is outside India, payment is received in convertible foreign exchange (or in Indian rupees where the RBI permits), and you and the recipient are not merely establishments of the same person.
A foreign client alone does not settle the question. CBIC Circular No. 78/52/2018-GST explains the last condition for related entities, and the place of supply depends on the type of service.
Place of supply for common freelance work
For most freelance work (software development, design, writing, marketing, consulting delivered remotely), the place of supply is the location of the recipient under the default rule in Section 13(2) of the IGST Act. Exceptions exist, such as services performed on goods physically in India or services tied to immovable property in India, and those can keep the supply in India.
What changed for intermediaries in 2026
Freelancers who arrange sales for overseas principals, such as sourcing agents, recruiters or lead-generation consultants, were earlier caught by Section 13(8)(b), which fixed their place of supply in India. Section 157 of the Finance Act, 2026, which received Presidential assent on 30 March 2026, omitted that clause, so intermediary services now follow the recipient-location rule and can qualify as exports if the other conditions are met.
Most published analysis treats the change as applying from 30 March 2026, but at least one commentary says it awaits notification. Confirm the commencement before re-classifying invoices dated around that period, and do not apply it to earlier periods.
LUT and invoices for export of services
A registered freelancer exporting services can either pay IGST and claim a refund, or export without paying IGST under a Letter of Undertaking (LUT). The LUT is filed online in Form RFD-11 under Rule 96A for each financial year, and it should be in place before the first export invoice of that year.
If export payment is not received within the period allowed under Rule 96A, the IGST becomes payable with interest. Keep the bank advice or foreign inward remittance record for every export invoice. Our LUT filing service handles the annual renewal.
Record | What it should show |
|---|---|
Contract or statement of work | Client's name and overseas address, the service, and that you supply it on your own account |
Export invoice | The endorsement required by Rule 46: supply meant for export under LUT without payment of integrated tax, or on payment of integrated tax |
Payment evidence | Bank advice or inward remittance record showing receipt in convertible foreign exchange |
LUT acknowledgement | RFD-11 for the financial year of the invoice |
One more consequence of registering: overseas software and service subscriptions bought from vendors who do not charge Indian GST generally attract GST under reverse charge for a registered person. Check your recurring foreign tools when you register.
Returns after a freelancer registers
A registered freelancer files GSTR-1 and GSTR-3B, monthly or quarterly under the QRMP scheme if aggregate turnover is up to ₹5 crore. Export invoices go in the exports table of GSTR-1, and zero-rated supplies are reported separately in GSTR-3B. Our guide to types of GST returns lists every form and due date.
Review your overseas contracts and income mix before choosing the registration and LUT route. Talk to Keshav's team about GST registration services at ComplyLocal →
