Freelancers — independent designers, writers, software developers, consultants, trainers, photographers and other service providers — are required to comply with GST law when their turnover crosses the registration threshold. Here is a complete guide to GST compliance for freelancers and consultants in India.
GST Registration Threshold for Freelancers
- ₹20 lakh aggregate turnover: Mandatory GST registration for service providers in most states (including Kerala)
- ₹10 lakh: For service providers in specified special category states
- Mandatory regardless of turnover: If providing services to clients outside your state (inter-state supply) — even ₹1 of inter-state service triggers mandatory registration
- If you work for foreign clients (export of services) — also consider voluntary registration to claim LUT and ITC refund
SAC Codes for Common Freelance Services
- 998311: IT design, development and testing services
- 998314: IT consulting and support services
- 998361: Advertising, creative and marketing services
- 999293: Educational support services (tuition, coaching)
- 998596: Writing, translation, editorial services
- 997159: Other professional and technical services
GST Rate for Freelance Services
Most professional and technical services provided by freelancers attract 18% GST. Check the GST rate schedule for your specific SAC code.
Invoicing Requirements
- Issue a GST-compliant invoice with: GSTIN, SAC code, HSN/SAC description, taxable value, GST rate and amount (CGST + SGST for intra-state; IGST for inter-state)
- For clients outside India (export): Issue invoice with "Export of Services — LUT Reference" and zero GST
- For registered business clients in India: The client may apply RCM (Reverse Charge) if the service is a notified RCM category (e.g., legal services from advocates)
GST Returns
- GSTR-1: Monthly (if turnover > ₹5 crore) or quarterly under QRMP (if ≤ ₹5 crore)
- GSTR-3B: Monthly or quarterly depending on QRMP election — pay GST liability
- ITC is available on business-related purchases (laptop, software subscriptions, internet, office supplies)
Conclusion
GST compliance for freelancers involves registration, proper invoicing with SAC codes and regular return filing — with special attention to inter-state and export transactions. SPOTON provides GST registration and return filing services for freelancers and independent consultants across Kerala. Contact us for expert GST compliance for your freelance practice.
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