GST registration for freelancers: when you need it and when you do not

GST is one of the most common worries for new freelancers, especially those working with clients abroad. The good news is that many freelancers do not need to register at all in their first years. Here is how to tell where you stand.

The basic rule: a turnover threshold

If you only supply services, you must register for GST once your aggregate turnover in a financial year crosses Rs 20 lakh. In four special category states, Manipur, Mizoram, Nagaland and Tripura, the threshold is Rs 10 lakh.

Once you cross the threshold, apply for registration within 30 days.

What counts as aggregate turnover

Aggregate turnover is the total value of all your supplies under the same PAN across India. It includes:

• Fees from clients in your own state.
• Fees from clients in other states.
• Exports of services to clients outside India.
• Exempt supplies, if you make any.

It does not include the GST itself. A common mistake is to count only domestic clients. Export income counts towards the threshold too.

Working with clients outside India

When you provide services to a client outside India, the supply is usually an export of services. Exports of services are zero-rated, which means the GST rate on them is effectively 0%. For a supply to count as an export of services, broadly:

• You, the supplier, are located in India.
• Your client is located outside India.
• The place of supply is outside India.
• You are paid in convertible foreign exchange, or in Indian rupees where the Reserve Bank of India allows it.
• You and the client are not simply two offices of the same business.

If you are registered, you can file a Letter of Undertaking (LUT) on the GST portal at the start of each financial year. With a valid LUT, you invoice export clients without charging or paying IGST. Without an LUT, you pay IGST on exports and then claim it back as a refund.

Exporters below the threshold: an area to check

Here, published guidance differs. Service providers making inter-state supplies below the threshold are exempted from compulsory registration by a government notification, and many advisers treat exports the same way. Some sources, however, say that exporters must register regardless of turnover. Our reviewers are checking this point against the notification text. Until we update this guide, confirm your own case with a GST practitioner if you export services and are below the threshold.

Why some freelancers register voluntarily

You can register even if you are below the threshold. Reasons people do so include:

• Business clients in India want GST invoices so they can claim input tax credit.
• Exporters want to file an LUT and claim refunds of GST paid on their business purchases, such as software or equipment.

Registration brings regular returns and compliance, even when you owe no tax. Weigh the benefits against the effort.

A worked example: Meera, a content strategist

Meera lives in Pune. In FY 2026-27 she expects Rs 9 lakh from Indian clients in Maharashtra, Rs 4 lakh from a client in Delhi and Rs 9 lakh from a client in the United States, a total of Rs 22 lakh.

1. Her aggregate turnover includes all three amounts: Rs 22 lakh.
2. That is above the Rs 20 lakh threshold for Maharashtra, so she must register within 30 days of crossing it.
3. Once registered, she charges GST on her Indian invoices at the applicable rate. She files an LUT so she can invoice her US client at 0% without paying IGST upfront.

Situations this guide does not cover

Different rules can apply if you also sell goods, supply through an online marketplace that collects tax at source, supply occasionally from a state where you have no fixed place of business, or are liable to pay GST under reverse charge. If any of these apply, speak to a GST practitioner.

Use our GST registration checker to see which rules apply to you.