GST Rules for Indian Freelancers
- The ₹20 Lakh Limit: If your total annual revenue (turnover) from freelancing exceeds ₹20 Lakhs (₹10 Lakhs in Special Category States), GST registration is mandatory.
- Inter-State Provision (Updated): Previously, providing services to a client in another state required mandatory GST registration regardless of turnover. This rule was relaxed. Service providers can now engage in inter-state supplies up to ₹20 Lakhs without GST registration.
- Export of Services (Foreign Clients): If you provide software or consulting services to clients in the US/UK and receive payment in convertible foreign exchange via a valid FIRC, it is considered an "Export of Service." Under GST, exports are "Zero-Rated." You must file a Letter of Undertaking (LUT) to export without paying IGST upfront.