GST Registration for Freelancers Offering International Services

Freelancers in India offering services to international clients often wonder whether GST applies to them. If you’re a content writer, graphic designer, developer, or consultant working with overseas clients or SEZ units, understanding GST Registration and export of services is essential.

In this blog, we’ll explain when freelancers need to register under GST, how exports are treated, and how to ensure compliance with place of supply rules.

Do Freelancers Need GST Registration?

Under GST law, freelancers are treated as service providers. If your aggregate turnover exceeds ₹20 lakhs in a financial year (₹10 lakhs in some northeastern states), you are mandatorily required to register under GST.

Even if your turnover is below this limit, you may opt for voluntary registration to claim input tax credit or to ensure better compliance if you deal with corporate or international clients.

What Are Export of Services?

Export of services is considered a zero-rated supply under GST. This means:

• No GST is charged on the invoice.

• You can claim a refund of input tax credit (ITC) or get supplies without paying tax under a Letter of Undertaking (LUT).

To qualify as export of services, the following conditions must be met:

1. The supplier is located in India.

2. The recipient is located outside India.

3. The place of supply is outside India.

4. The payment is received in convertible foreign exchange or INR as permitted by RBI.

5. The supplier and recipient are not merely establishments of the same person.

If all conditions are met, your international freelance services can be treated as exports under GST.

What Is a Letter of Undertaking (LUT)?

An LUT is a declaration filed online on the GST portal that allows you to make zero-rated exports without paying IGST. Freelancers offering international services can file LUT every financial year to avoid paying tax upfront and claim refund later.

Without an LUT, you will need to pay IGST and then claim a refund, which can take longer and increase compliance burden.

GST and SEZ Clients

If you provide services to clients located in Special Economic Zones (SEZ), those are also treated as zero-rated supplies. However, SEZ units must provide a valid letter confirming the services are used for authorized operations.

Freelancers dealing with SEZ clients should:

• Maintain service agreements

• Collect valid documentation from SEZ units

• Mention SEZ details in invoices

Place of Supply Rules for Freelancers

Understanding place of supply is critical in determining whether GST applies.

• For export of services, the place of supply is considered outside India, and thus zero-rated.

• For domestic services, GST applies based on whether the client is in the same state (intra-state supply) or another state (inter-state supply).

You must mention correct place of supply and state code while generating GST invoices.

Invoicing Guidelines for Export Services

Freelancers providing international services must issue invoices that include:

• GSTIN (if registered)

• Description of service

• Invoice number and date

• Name and address of foreign client

• Mention of "Export of Services under LUT without payment of tax"

• Currency used and exchange rate

Invoices must comply with GST rules and should be retained for at least 6 years.

Can Freelancers Claim Input Tax Credit?

Yes, if registered under GST, freelancers can claim input tax credit on business-related expenses like:

• Software subscriptions

• Office supplies

• Internet services

• Professional services (legal, accounting, etc.)

ITC cannot be claimed if the freelancer is not registered under GST.

Conclusion

GST Registration is not mandatory for all freelancers, but it becomes necessary when your income exceeds the prescribed limit or if you’re working with global clients or SEZs. Export of services is a zero-rated supply under GST, which offers refund benefits if proper compliance is maintained.

To ensure smooth operations and access to benefits like input credit and tax refunds, freelancers offering international services should strongly consider registering under GST and filing LUT.

An independent legal content writer passionate about simplifying complex government registrations and compliance procedures for startups, entrepreneurs, and professionals in India. With hands-on research and experience in topics like GST, FSSAI, PSAR