Hi, I have just started out working as freelance software consultant providing services like software development, interviewing candidates, software design etc. I have various clients from India and outside India (via upwork.com). Some of them directly transfer to my bank account, some via upwork.com(in dollars). Since I have just started 2 months back I have obviously not crossed the 40 lac exemption limit. But I am not sure if I need to register for GST as - 1. sometimes I get paid in dollars (upwork.com credits to my bank account ) 2. Some of clients are from Mumbai/Delhi and I am from Karnataka. HK
First of all limit for you is 20 lakh and not 40 lakh since you are providing and not selling goods and you need to register only when you cross such limit.
However if you are also selling some goods to them i.e. software then you need to immediately take registration as in case of goods if you do inter state transaction you need to register.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello,
Firstly, the limit for GST registration for service providers has not changed and is Rs. 20 Lakhs as originally provided. Therefore in case, your total receipt during a financial year crosses the Rs. 20 Lakhs mark, you need to get GST registration.
Since you are providing services to clients outside India and also receiving your fees in foreign currency, it is termed as Export of services as per GST law. Export under GST is treated as inter-state supply and under GST law, any person engaged in the inter-state taxable supply of goods or services or both is required to obtain compulsory registration with the exception that in case of the service provider if taxable turnover during the year exceeds Rs. 20 lakhs. So in case of export of services also you need to get GST registration only if your total turnover crosses the Rs. 20 Lakhs limit.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
The increased limit of Rs 40 lakh applicable only for sale of goods.
For service providers limit continues to be Rs 20 lakh.
Service providers will continue to be required to register for GST once they cross a turnover of Rs.20 lakhs.
You are required to get GST registration only if your turnover/receipts crosses the limit of Rs 20 lakh.
Hi,
Basis current GST laws, the limit of 20 Lakhs is applicable for freelancers/service providers. The limit of 40 lakhs was raised only for goods seller.
Hence, if your turnover exceeds the threshold of 20 Lakhs, GST registration is compulsory. This limit would also include the export of services (consultancy provided outside India).
Thanks
Damini
Hello Sir,
You need to get the GST registration only if your turnover (including export of services) exceeds the threshold limit of Rs 20 lakhs.
The new limit is not applicable to service providers.
Hi
You don't need a GST registration till your turnover is up to 20 lacs. (40 lacs limit is for intra state supply of goods).
Irrespective of the above 2 facts, you will need GST registration only once you cross the turnover limit of 20 lacs.
The exemption limit is only 20 Lakhs for Service Providers.
So you need to register under GST, if your Gross receipts exceeds 20 Lakhs.
The money you are getting from upwork can be shown as Export of Service under LUT in GST & no GST would have to be paid on such income.
On Income from Indian clients, you will have to pay GST.
We specialize in providing services to Freelancers, Bloggers, You Tubers etc.
So kindly connect at tysassociates.ca @gmail for any assistance.
Hello,
It seems you are providing service and not goods, so your exemption limit is 20 lacs.
If you took registration under GST Act you can take benefit of export of service whenever you supply outside india by supplying service under LUT but you have to pay tax if you supply within India.
Thank you
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