GST on Freelance Services — Rates, Registration & Filing (2026)
Freelancers providing services in India are subject to GST at 18% once their annual turnover crosses ₹20 lakh. However, freelancers working for overseas clients may qualify as export of services — which is zero-rated and exempt from GST.
Quick Reference
Rate
18%
SAC Code
998300
ITC
Allowed
Exports
Zero-rated
Threshold
₹20 lakh
GST Rate
18%
SAC 998300 / 997000
GST Rate on Freelance Services
18% GST applies to most freelance services — design, development, writing, consulting, marketing, photography, and other professional services. The SAC code depends on the specific service type.
When Must a Freelancer Register for GST?
Registration is mandatory when annual turnover exceeds ₹20 lakh (₹10 lakh for states like Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Meghalaya, Arunachal Pradesh). Voluntary registration is possible at any turnover level.
Exports of Services — Zero-Rated (No GST)
If your client is outside India and payment is received in foreign currency, it qualifies as export of services under IGST Act. Export services are zero-rated — you charge 0% GST. You can either: (a) export without payment of tax and claim refund of input ITC, or (b) pay IGST and claim refund. This applies even if your turnover is above ₹20 lakh.
GST Returns for Freelancers
Registered freelancers must file GSTR-1 (monthly/quarterly), GSTR-3B (monthly), and GSTR-9 (annual). Composition scheme is not available for service providers with turnover above ₹50 lakh.
Input Tax Credit for Freelancers
You can claim ITC on business expenses: laptop, software subscriptions, internet, office rent, professional services. ITC cannot be claimed on personal expenses or items under Section 17(5) blocked credits.
🧮 Calculate GST on your freelance invoice
Free calculator — instant results, no signup required.
No mandatory registration if you earn under ₹20 lakh annually and only serve Indian clients. However, if you serve overseas clients (exports), you can voluntarily register to claim ITC refunds on your expenses.
No. Services to foreign clients paid in foreign currency are treated as export of services — zero-rated. You issue the invoice without GST. You should still be registered if you want to claim ITC refunds.
SAC 998313 (software development), SAC 998314 (web design), or SAC 998315 (IT consulting) depending on the nature of work. Use SAC 998300 as a general code if in doubt.
No. The Composition Scheme for services is only available to service providers with turnover up to ₹50 lakh, and only for restaurant businesses under the scheme. IT/professional service freelancers cannot opt for Composition.
