Professional ServicesSelf-Employed

GST for Freelancers & Professionals — Registration, Rates & Exports

Complete GST guide for freelancers, consultants, CAs, lawyers, designers, and self-employed professionals. Covers registration threshold, 18% rate applicability, export zero-rating, reverse charge, ITC claims, and QRMP quarterly filing.

18%

Standard Rate

₹20 Lakh

Registration Threshold

₹20 Lakh

Inter-State Threshold

RCM

Legal Services

No*

Composition Option

QRMP

Quarterly Return

0%

Export (LUT)

5%/12%

GTA Services

GST Provisions for Freelancers & Professionals

Registration Threshold — ₹20 Lakh

Freelancers and professionals must register for GST when aggregate turnover exceeds ₹20 lakh (₹10 lakh for special category states). For inter-state supply of services, registration is mandatory regardless of turnover. E-commerce sellers must register irrespective of threshold.

Professional Services — 18% GST

All professional services (CA, CS, lawyer, architect, engineer, consultant, designer, writer, photographer) attract 18% GST under SAC 9982/9983. Full ITC available on business expenses. Must issue tax invoices for all supplies above ₹200.

Legal Services — Reverse Charge

Legal services by individual advocates or partnership firms of advocates to any business entity attract GST under Reverse Charge Mechanism (RCM). The client (business) pays 18% GST, not the advocate. Advocates need not register if supplying only under RCM.

Freelance Exports — Zero-Rated

Freelancers working for foreign clients (Upwork, Fiverr, direct contracts) get zero-rated treatment. No GST charged on invoice. Full ITC refund available. Must file LUT (Letter of Undertaking) annually. Payment must be received in foreign exchange within 1 year.

QRMP Scheme — Quarterly Returns

Freelancers with turnover up to ₹5 crore can opt for QRMP (Quarterly Return Monthly Payment). File GSTR-1 and GSTR-3B quarterly instead of monthly. Pay tax monthly via challan (35% of last quarter as estimate or actuals). Significant compliance reduction.

Place of Supply Rules for Services

B2B services: Place of supply = location of recipient (IGST for inter-state). B2C services: Place of supply = location of supplier (CGST+SGST). For immovable property services: location of property. For events: where event is held. Critical for determining IGST vs SGST.

GST Rate Matrix — Professional Services

Service TypeGST RateSAC CodeNotes
IT freelancing (development, design)18%9983Full ITC available
Consulting (management, strategy)18%9983Full ITC available
CA/CS/CMA services18%9982Full ITC available
Legal services (advocate)18%9982RCM — client pays
Architecture & engineering18%9983Full ITC available
Content writing & journalism18%9983Full ITC available
Photography & videography18%9989Full ITC available
Digital marketing & SEO18%9983Full ITC available
Translation & interpretation18%9983Full ITC available
Export to foreign clients0%9983Zero-rated with LUT
Coaching & training18%9992Unless UGC-recognized
Health/fitness professionals18%9996Yoga/gym training

Frequently Asked Questions

When must a freelancer register for GST?
A freelancer must register for GST when: (1) Aggregate turnover exceeds ₹20 lakh in a financial year (₹10 lakh for NE/hill states), (2) Making any inter-state supply (regardless of turnover), (3) Supplying through e-commerce platforms (regardless of turnover), (4) Liable to pay tax under Reverse Charge Mechanism. Voluntary registration is allowed below threshold to claim ITC.
How are freelance exports taxed under GST?
Freelance exports (services to foreign clients) are zero-rated — 0% GST with full ITC refund. Requirements: (1) File Letter of Undertaking (LUT) in Form GST RFD-11 annually, (2) Receive payment in convertible foreign exchange within 1 year (extendable to 3 years in special cases), (3) Recipient located outside India, (4) Report in Table 6A of GSTR-1. Alternatively, pay IGST and claim refund.
Do freelancers earning from Upwork/Fiverr need GST?
If aggregate turnover (including platform earnings) exceeds ₹20 lakh, yes. However, since Upwork/Fiverr clients are typically foreign, these are zero-rated exports. You still need GST registration (mandatory for inter-state/export), but charge 0% with LUT. The platform commission paid to Upwork (foreign) attracts 18% GST under RCM which you pay and claim as ITC.
What expenses can freelancers claim ITC on?
Freelancers can claim ITC on: (1) Office rent (if GST-registered landlord), (2) Computer/laptop purchases, (3) Internet and phone bills, (4) Software subscriptions (Adobe, Microsoft), (5) Co-working space charges, (6) Professional development courses, (7) Travel for business (hotels at 12/18%, flights at 5%). Cannot claim ITC on: personal expenses, food/beverages, health insurance, motor vehicles (with exceptions).

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