GST Registration for Freelancers in India

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GST Registration for Freelancers in India

Freelancer is a new normal and people are shifting from their traditional jobs to freelancing. Many freelancers are earning handsomely through their freelance projects and services. However, they need to be aware that they are not the employees earning salary income and therefore, they shall be liable for GST registration once they cross the threshold limit. What are the GST implications for freelancers in India and how can they obtain the registration? Let’s find out!

Applicability of GST Registration for Freelancers in India

Freelancers are usually engaged in providing remote services to their customers. Therefore, they shall be liable to obtain GST registration once their aggregate turnover exceeds Rs. 20 lakhs in any of the financial years. However, in case you are providing freelance services from any of the following states, then the threshold limit applicable to you shall be Rs. 10 lakhs instead of Rs. 20 lakhs:

  • Mizoram
  • Manipur
  • Tripura
  • Nagaland

It is to be noted that freelancers providing services are not required to mandatorily obtain GST registration in case of inter-state supply as in the case of the supply of goods. They can still avail of the benefit of GST exemption limit for freelancers of Rs. 20 lakhs or 10 lakhs, as the case may be, in case of inter-state supply if they are providing services. Also, GST law provides an option for voluntary registration if the freelancer so desires.

How to Obtain GST Registration for Freelancers in India?

Most freelancers wonder – how to register for GST for freelancers? For obtaining GST registration for freelancers in India, an online application shall be made by filing Form GST REG-01. The form consists of two parts i.e., Part-A and Part-B. To file Form GST REG-01, follow the below mentioned steps:

  • Visit the GST Portal >> Services >> Registration >> New Registration
  • Part-A of Form GST REG-01 will open. Select the ‘Taxpayer’ in the ‘I am a’ drop-down menu and proceed to fill in the relevant details.
  • Once filled, you will receive two separate OTPs in your mobile number and e-mail ID. Enter these OTPs.
  • A Temporary Reference Number (TRN) will be generated. Save this TRN for future references.
  • Again navigate as per step one. This time, select ‘Temporary Reference Number’ instead of ‘New Registration’.
  • Enter the TRN and proceed. Again you will receive the OTP on your mobile number and e-mail ID. Enter the OTP to open Part-B of Form GST REG-01.
  • Fill in all the requisite details and submit the Part-B of Form GST REG-01. While selecting the reason for obtaining GST registration, select the relevant reason i.e., whether you are applying voluntarily or whether you have crossed the threshold limit or any other reason. 
  • If you have selected the Aadhaar authentication option, then you will receive a link for Aadhaar authentication on your registered mobile number and e-mail ID. 
  • Authenticate the details of your Aadhaar card using the Aadhaar OTP by visiting the link received.
  • Once the above formalities are completed, you will receive an Application Reference Number (ARN) on your mobile and email ID. Save this number for all your future references.
  • The concerned GST officer will scrutinize the application. If the details are found to be sufficient, then the officer will approve the application and grant the GSTIN i.e., GST Identification Number.
  • However, if the application is found to be insufficient or the GST officer requires additional documents or clarification, then he will issue a show cause notice. You need to furnish the reply along with the documents and clarifications sought within the time specified in the notice.
  • If the officer finds the reply satisfactory, he will approve the application and grant the GSTIN. However, if the reply is found incomplete or unsatisfactory, then your application shall be liable for rejection.

 The above were the steps to obtain GST registration for freelancers in India. In case you are a freelancer and willing to obtain GST registration for freelance services, then feel free to contact the eAuditor Office.


Author : Dipen

Date     : 21-Jul-2022


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