GST for freelancers and creators: when to register and what to charge

GST confuses more freelancers than income tax does. Here's what actually matters for creators and freelancers, in plain English.

When do you have to register?

You must register once your aggregate turnover in a financial year (April–March) crosses:

• ₹20 lakh for services in most states
• ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura

Aggregate turnover includes exports: AdSense, Upwork and foreign clients all count, even though you won't charge GST on them.

Below the limit?

Registration is optional. Some freelancers register voluntarily because agencies insist on GST invoices or to claim input tax credit on big purchases. The trade-off: monthly or quarterly returns, even in months with no income.

What rate do you charge?

Most creator and freelance services (content creation, design, editing, development, marketing) are taxed at 18%:

• Client in your state → CGST 9% + SGST 9%
• Client in another state → IGST 18%
• Client outside India → export of services, zero-rated

Exports and the LUT

Exporting services is zero-rated. Most freelancers file a Letter of Undertaking (LUT) on the GST portal each year, which lets them invoice foreign clients without paying IGST. Your invoice should say: "Supply meant for export under LUT without payment of IGST."

Common mistakes

1. Forgetting that AdSense and foreign income count towards the threshold.
2. Charging GST without being registered (you can't).
3. Missing returns in months with no income. Nil returns are still due.
4. Not filing a fresh LUT each financial year.