GST for Indian Freelancers: Registration, Rates, Invoicing, LUT & Returns [2025 Guide]

Are you a freelancer in India wondering whether you need to register for GST or how to manage your taxes as an independent service provider?

Understanding GST (Goods and Services Tax) for freelancers in India is essential if you want to stay compliant, avoid penalties, and work seamlessly with clients—especially international ones.

In this complete guide, we’ll walk you through everything Indian freelancers need to know about GST in 2025, including:

• When GST registration is required
• GST rates and HSN/SAC codes
• Best invoicing software for freelancers
• How to file LUT for export of services
• GST returns and due dates

1. GST Registration for Freelancers in India

➤ When Is GST Registration Mandatory?

Freelancers in India must register for GST when their annual turnover exceeds ₹20 lakhs. For special category states (like Manipur, Mizoram, Nagaland, and others), the limit is ₹10 lakhs.

Until you cross the threshold, GST registration is not required.

However, if you export services, work with large clients, or want to claim Input Tax Credit (ITC), you might consider voluntary GST registration even if your income is below the threshold.

➤ How to Register for GST: Step-by-Step Guide

1. Go to the official GST portal
2. Click on ‘Register Now’ under ‘Taxpayer’.
3. Enter your PAN, mobile number, email, and state.
4. Verify via OTP to get a Temporary Reference Number (TRN).
5. Login with TRN, fill Part B of the registration with:
   • PAN and Aadhaar
   • Business address proof
   • Bank account details
   • Passport-size photo
6. Submit using EVC or DSC
7. Receive your GSTIN (GST Identification Number) within a few working days.

2. GST Rates and HSN/SAC Codes for Freelancers

Once registered, you need to charge GST at the correct rate based on your service category. Services are categorized using SAC codes (Service Accounting Codes) under GST.

➤ Common SAC Codes for Freelancers

➤ How to Find GST Rates & SAC Codes

Use this resource to find your applicable GST rate:

• GST Rate Finder – CBIC

Make sure to enter the correct code on every GST invoice you issue.

3. Invoicing Software for GST-Compliant Freelancers

You must issue GST-compliant invoices after registration, including:

• GSTIN (your & client’s, if registered)
• Invoice number & date
• Description of service
• SAC code
• Taxable value & GST breakup (CGST, SGST/IGST)

➤ Best Invoicing Software: Zoho Books (Free Plan)

Zoho Books offers a 100% free plan for freelancers and small businesses with annual turnover below ₹25 lakhs.

Features:

• Auto-calculate GST
• Custom GST invoice templates
• Payment reminders
• Expense tracking
• Easy export of data for return filing

Why We Recommend It: It’s GST-ready, cloud-based, and doesn’t cost a rupee for freelancers.

4. LUT Filing for Export of Services (Freelancers with International Clients)

If you work with foreign clients, your services qualify as exports under GST. Exports are zero-rated, but you must file an LUT (Letter of Undertaking) to avoid charging GST on your invoices.

➤ What Happens Without LUT?

Without an LUT, you are required to charge 18% GST and then claim a refund later—which can lock up your cash flow.

➤ How to File LUT on GST Portal (2025 Process)

Filing your LUT is quick and entirely online. Here’s how:

1. Login to the official GST portal: https://www.gst.gov.in
2. Navigate to:
   Services → User Services → Furnish Letter of Undertaking (LUT)
3. Choose the relevant financial year (e.g., 2025–26)
4. In the form:
   • Tick all required declarations regarding export compliance.
   • Enter details of previous LUTs (if applicable).
5. Upload documents, such as:
   • Self-declaration (most freelancers can skip uploading bond/guarantee)
   • Authorization letter (if applying via tax practitioner)
6. Sign using:
   • EVC (Electronic Verification Code) for proprietors/individuals
   • DSC (Digital Signature Certificate) for companies/LLPs
7. On successful submission, you’ll get an Acknowledgment Reference Number (ARN)

Once approved, you can download a copy of your LUT from the portal.

LUT is valid for 1 year. You must reapply at the beginning of each financial year.

5. GST Return Filing for Freelancers (2025 Calendar)

After registering for GST, return filing becomes mandatory—even if your revenue is zero for the period.

➤ Key GST Returns for Freelancers

➤ QRMP Scheme for Freelancers

If your annual turnover is under ₹5 crore, you can opt for the QRMP (Quarterly Return, Monthly Payment) scheme to reduce filing hassle.

➤ Late Fees & Interest

• ₹50/day (₹20/day for nil returns)
• 18% annual interest on delayed tax payments

Don’t skip returns—even for zero revenue months. Non-filing can lead to cancellation of GSTIN and penalties.

Conclusion: Should Indian Freelancers Register for GST?

If you’re earning more than ₹20 lakhs annually, work with international clients, or want to scale professionally—yes, GST registration is essential.

Here’s a quick checklist for compliance:

• Register once you cross the threshold
• Use Zoho Books for seamless invoicing
• File LUT to avoid charging GST on exports
• File GSTR-1 & GSTR-3B regularly
• Stay updated on GST law changes