When you need to register
As a freelancer supplying services, you must register for GST once your turnover crosses ₹20 lakh in a financial year. Below that, registration is voluntary. Note that the compulsory inter-state-supply rule that forces goods sellers to register doesn’t force service providers below the threshold in the same way — but overseas work brings its own reasons to register.
Export of services: zero-rated
Here’s the key point most freelancers miss. When you invoice a client abroad and receive payment in foreign currency, your work usually qualifies as export of services — which is zero-rated under GST. That means no GST is ultimately borne on it, and you can still claim input credit on your business purchases. But you have to claim this treatment correctly, not just ignore GST.
The LUT is the document that matters
To export services without paying GST upfront, you file a Letter of Undertaking (LUT) for the financial year. With the LUT in place, you invoice overseas clients with no GST. Without it, you’d have to pay 18% IGST and then claim it back as a refund — blocking your cash in the meantime. So the LUT is what turns a potential 18% cost into nothing. It must be filed before you invoice, and renewed each year.
Mixed clients: Indian and foreign
Many freelancers bill both Indian and overseas clients. Your Indian client work is normal taxable supply (you charge GST); your overseas work is zero-rated export under the LUT. Keeping the two correctly separated in your invoicing and returns is the practical work — and it’s exactly the kind of thing that goes wrong without a proper setup.
Getting set up
For freelancers we handle registration (₹499), file the LUT so your foreign income is zero-rated, set up export-compliant invoicing with the right SAC codes, and file your monthly returns (₹499/month, Nil months included). If most of your income is from abroad, getting the LUT right is genuinely worth more than the fee.