GST Invoice for Freelancers
Freelancers issue a GST invoice only after registering, which becomes compulsory once service turnover crosses ₹20 lakh a year, or ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura. Registered freelancers then bill most services at 18%: CGST plus SGST for clients in the same state, IGST for other states, and zero-rated exports under an LUT.
For Indian freelance developers, designers and writers who need to know when GST applies, what the invoice must show and how foreign clients are billed.
knowledge
- Read time
- 5 min
- Sections
- 8
- Updated
- 14 Nov 2026
- Written by
- WebJi® team
Last editorial update: 14 November 2026. Prices follow the dated sources on this page; checkout confirms current charges.
When does a freelancer need GST registration?
A freelancer who supplies services must register for GST once aggregate turnover in a financial year crosses ₹20 lakh, or ₹10 lakh when supplying from Manipur, Mizoram, Nagaland or Tripura. The test is in Section 22 of the CGST Act, and until you register you cannot issue a tax invoice or collect GST.
- Aggregate turnover includes exports: fees from foreign clients count towards the ₹20 lakh even though they are zero-rated.
- Inter-state clients alone do not force registration: a government exemption lets service providers below the threshold bill clients in other states without registering.
- Voluntary registration is allowed: some freelancers register early because large clients want an invoice they can claim credit on.
Registration is done on the GST portal with PAN, Aadhaar, a bank account and proof of your business address; a chartered accountant can file it if you prefer. Below the threshold, still send a proper invoice — just without a GSTIN, tax lines or the word "tax invoice".
What must a freelancer's GST invoice contain?
A GST tax invoice must show your name, address and GSTIN, a unique serial number for the financial year, the date, the client's details (and GSTIN if registered), the SAC, the taxable value, the tax rate and amount, and the place of supply. These fields come from Rule 46 of the CGST Rules, and for services the invoice is due within 30 days of supplying the service.
| Block | What to print |
|---|---|
| Heading | "Tax Invoice" |
| Supplier | Legal name, address, 15-character GSTIN |
| Number and date | Consecutive serial of up to 16 characters, unique in the financial year (e.g. WJ/26-27/014) |
| Recipient | Name and address; GSTIN if the client is registered |
| Place of supply | State name and code; for business clients this is usually where the client is registered |
| Service line | Plain description, SAC, taxable value |
| Tax | CGST + SGST, or IGST, with rate and amount |
| Close | Total payable, bank or UPI details, signature or digital signature |
Start a new number series each April and never reuse a number. Keep every PDF: each tax invoice becomes a line in your GSTR-1.
CGST and SGST or IGST: which goes on the invoice?
Charge 9% CGST plus 9% SGST when the client is in your state, and 18% IGST when the client is in another state; the total rate is 18% either way for most freelance services. The state comparison uses your registration and the place of supply, not where you happened to work.
| Client | Tax lines | Tax | Invoice total |
|---|---|---|---|
| Jaipur company (Rajasthan) | CGST 9% + SGST 9% | ₹7,200 + ₹7,200 | ₹94,400 |
| Bengaluru company (Karnataka) | IGST 18% | ₹14,400 | ₹94,400 |
| London client, export with LUT | Zero-rated, no IGST | ₹0 | ₹80,000 |
The arithmetic: 18% of ₹80,000 is ₹14,400, split evenly as ₹7,200 each for an intra-state supply. The total the client pays is identical; only the tax heads differ.
Which SAC code should a freelancer use?
Freelance tech services sit under SAC heading 9983 (other professional, technical and business services): 998314 for IT design and development including websites and apps, 998313 for IT consulting and support, and 998315 for hosting. A pure service always uses a SAC, never an HSN code.
- 998314
- IT design and development: websites, web apps, mobile apps, custom software.
- 998313
- IT consulting and support: audits, technical advice, maintenance retainers.
- 998315
- Hosting and IT infrastructure provisioning: the code on a hosting invoice, including a resold plan.
- 9983 (other sub-codes)
- Many writing, design and consulting jobs; ask a chartered accountant to match the exact six digits.
Use one code per invoice line. A web developer who also resells hosting prints 998314 on the build and 998315 on the hosting line. GST on web hosting explains how tax applies to the hosting part.
Do freelancers charge GST to foreign clients?
No GST is charged on a qualifying export of services when you have filed a Letter of Undertaking (LUT); without an LUT you pay 18% IGST and claim it back as a refund. An unregistered freelancer below the threshold adds no GST at all.
A service counts as an export when you are in India, the client is outside India, the place of supply is outside India, you are paid in convertible foreign exchange (or in rupees where RBI permits), and the client is not simply your own branch abroad. File the LUT on the GST portal at the start of each financial year, and print "Supply meant for export under LUT without payment of IGST" on the invoice. Confirm the conditions with a chartered accountant before the first overseas bill.
Can a freelancer claim GST credit on hosting and software?
Yes: a registered freelancer can claim input tax credit on hosting, domains and software used for the business, provided the supplier's tax invoice shows the freelancer's GSTIN and the supplier has reported it. The credit is set off against the GST you owe on your own invoices.
WebJi® invoices from Rajasthan under GSTIN 08AACCW2259G1Z9, so a freelancer registered in Rajasthan sees CGST plus SGST on a WebJi® bill and anyone else sees IGST. Save your 15-character GSTIN in the client area before paying; if a paid invoice is missing it, email support@webji.services with the invoice number. Support answers 24/7 in Hindi and English with an average first reply under 60 minutes.
Foreign subscriptions work differently. Since 1 October 2023, overseas online-service providers generally charge Indian GST to unregistered Indian buyers, while a registered buyer pays it under reverse charge and may then claim the credit.
Which GST returns does a registered freelancer file?
A registered freelancer files GSTR-1, which lists every outward invoice, and GSTR-3B, which summarises tax due, credit used and the payment. Freelancers with turnover up to ₹5 crore can opt for the QRMP scheme and file quarterly, paying tax monthly.
- Record every tax invoice of the period, including zero-rated exports.
- Check your purchase credits in GSTR-2B against the invoices you received.
- File GSTR-1 for the period's sales.
- File GSTR-3B and pay output tax minus eligible credit.
Due dates are printed on the GST portal for each period. Missing invoices or late returns attract interest and penalties under the CGST Act, and a client who cannot see your invoice in their GSTR-2B may hold payment until it appears.
How do freelancers invoice resold hosting under GST?
Reselling hosting creates two separate invoices: WebJi® bills you with 18% GST, and you bill your client in your own name for the plan you sold. If you are registered, you charge GST to the client and claim credit for the GST on WebJi®'s invoice; if you are not, you cannot charge GST or claim the credit.
White-label reseller hosting is built for this model, starting at ₹4,000 a year before 18% GST for LR-START. Starting a reseller hosting business covers pricing and client billing in more detail.
Frequently asked questions
Can an unregistered freelancer add 18% GST to an invoice?
No. Only a registered person can collect GST. An unregistered freelancer sends an invoice without tax lines or a GSTIN. Collecting tax without registration is an offence, and the client cannot claim credit on it anyway.
Is the composition scheme useful for freelancers?
Rarely. Service providers with turnover up to ₹50 lakh can opt for a 6% composition rate, but they issue a bill of supply, cannot claim input credit, and cannot make inter-state supplies. Freelancers with clients in other states or abroad usually stay on the normal scheme.
Does TDS on a freelance payment change the GST invoice?
No. Income-tax TDS deducted by the client is shown on their payment advice, not as a GST line. Your invoice still shows the full taxable value and GST; the client pays the total minus TDS and issues you a TDS certificate.
What if I made a mistake on an issued GST invoice?
Do not edit or reuse the number. Issue a credit note to reduce the value or a debit note to increase it, referencing the original invoice, and report the note in the return for that period.
Checked 14 November 2026 against the CGST Act and Rules. This is general information, not tax advice; confirm your case with a chartered accountant · Reviewed by the WebJi® team, Jaipur.
Ready to get started with WebJi®?
Join 12,000+ businesses across India and overseas. INR pricing, 18% GST shown before payment and 24/7 email support in Hindi and English — average first reply under 60 minutes.