A freelancer—writer, designer, developer, consultant, photographer—is a service provider under GST. The threshold is ₹20 lakh. The rate is 18% for domestic clients. The export route (LUT, zero-rated invoice, FIRC, refund) is available for foreign clients. The ITC on software, equipment and workspace is eligible where the invoice is in the freelancer’s registered name.
The Registration Decision
A freelancer below ₹20 lakh may not need to register, but voluntary registration can preserve ITC on significant equipment or software purchases and can satisfy clients who require a GST invoice. The decision should be modelled against the expected input tax and the client’s credit needs.
The Export Documentation
A freelancer serving foreign clients should obtain a LUT, issue zero-rated invoices, maintain FIRC/bank realisation evidence and claim refund of accumulated ITC. The five Section 2(6) conditions apply; the establishment condition is satisfied where the foreign client is a separate legal entity.
The ITC Discipline
The freelancer should ensure that invoices for software, equipment and workspace are in the registered name with the correct GSTIN. A personal-name invoice does not support the credit. Section 17(5) blocks credit on personal consumption and specified items.
What the Consultant Does
The consultant assists with the registration decision, the LUT/export documentation and the ITC review. The value is in the documentation that supports the freelancer’s credit and export positions.
Call to Action: We advise freelancers on GST registration, export zero-rating and ITC discipline. For a freelancer-specific review, contact office@anujdesaiassociates.com, Ph No. 9619456656, Website https://anujdesaiassociates.com, LinkedIn linkedin.com/in/ca-anuj-desai-122547230.