Is it mandatory for freelancers to register for GST

Apparently as per GST department if you are earning online you should compulsorily get registered in GST and file your return to report your export but as per act if your turnover during the year is above 20 lakh (from 1.4.19 this limit has been increased to 40 lakh) then you need to register under GST and you can apply for LUT and then you are not required to pay any GST on it but if you don't have LUT then you need to pay GST from your pocket.

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Thanks

- It falls into the category of export of service where the threshold limit for registration and payment of liability is Rs.20 lacs. If you have crossed the limit of Rs. 20 lacs the you should register for GST and apply for LUT for export without payment of taxes otherwise you need to export with payment of taxes and claim refund for the same.

Hi

You need to register under GST if your turnover exceeds 20 lacs. Although you don't have to charge or pay GST  post registration, return filing would be mandatory. You can export without payment of GST under Letter of Undertaking.

Dear Sir,

Hope you are doing well !!

Everyone whose taxable turnover exceeds 20 lakhs needs to obtain GST registration .

Further it should be noted that export is considered as zero rated supply and not non-taxable supply.

Your service are classified as export of services and you are liable to registration if your taxable turnover exceeds 20 lakh.

An exporter dealing in zero-rated goods under GST can claim a refund for zero-rated supplies as per the following options:

Option 1: Supply goods or services, or both, under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax, and then claim a refund of unutilised input tax Credit.

Option 2:  Pay the IGST and can claim refund of such tax paid on the supplied goods or services, or both.

Hi,

I understand that the freelancer is working for US based client, hence he is doing export of services.

In this case, he must obtain GST registration if he crosses the threshhold limit of turnover mentioned under act. However, even after taking the registration, he will not charge GST from an entity/client outside India. But monthly earnings shall be reported to government in GST returns.

Secondly,  since the exports are Nil rated, hence he will have the following two options:

1. First pay GST @ 18% to the government and then claim the same as refund at the end of the year.

                                                                         OR

2. Apply LUT (Letter of Undertaking) with the GST department and then claim the whole earnings exempt from GST.

In any of the two cases, the return filing obligation shall always persists.

Thanks

Damini

Hi,

Freelancers selling services with a turnover above Rs. 20 lakhs yearly must register for GST. 

Export  is zero rated supply in GST, so you can either  pay IGST  and take refund or you can submit  LUT /BOND for export of your service.

Hi

If your turnover cross the threshold of 20 lacs then you need to get GST registration.