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A lot many queries have been received regarding the impact of Goods and Services Tax on Freelancers, right the newly implemented GST on freelancers.

Let’s go one by one and understand the applicability of GST on Freelancers working through platforms such as Freelancer, UpWork, Fiverr etc.

  • Exports of Services from India is considered as an inter-state supply under GST law and hence GST is applicable on all such transactions.
  • All exports are zero-rated under GST, this means that GST is applicable at the rate of zero (0) percent and all compliance needs to be done as per the law including Registration & Return Filing. The purpose of making it zero rated is to promote exports.
  • Once you get yourself registered under GST and file return for work done on these platforms, though there would be no GST liability but you can claim the refund of GST paid on input services such as wifi bills, rent etc.
  • Threshold limit to register for GST is INR 20 lakh. In case of online business, there is no limit and you need to register your business irrespective of your turnover. And here online business means Amazon or Flipkart and other marketplaces.
  • We tried to get clarification from Directorate General of Foreign Trade (DGFT) who monitors import and export of goods and services and below it their reply to our query:
DGFT on GST

DGFT on GST

We hope it clarifies all the doubts now.

We at FileMyGSTR have been managing GST Compliance for Freelancers so that as a freelancer you don’t need to worry of it. And we understand it like no one else.

Still have query? you may reach to me directly at [email protected].

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