If you're a freelancer in India earning more than ₹20 lakhs per year, you're required to register for GST and include it on every invoice you raise. Even if you're below the threshold, many corporate clients require a GST invoice before they can process payment.
This guide walks you through everything — from GST registration to sending your first compliant invoice.
Do you need to register for GST?
GST registration is mandatory if your annual turnover from freelance services exceeds:
- ₹20 lakhs for most states
- ₹10 lakhs for special category states (Manipur, Mizoram, Nagaland, Tripura)
Even if you're below the threshold, voluntary registration is worth considering if your clients are GST-registered businesses — they can claim input tax credit on the GST you charge them, which makes you more attractive to work with.
What GST rate applies to freelancers?
Most freelance services fall under the 18% GST slab. This includes:
- Web and app development
- Graphic design and UI/UX
- Content writing and copywriting
- Consulting and advisory services
- Digital marketing
Some services like educational content may qualify for exemption or lower rates — check with a CA if you're unsure.
What must a GST invoice include?
A valid GST invoice must contain:
- The word "Tax Invoice" prominently displayed
- Your name, address, and GSTIN
- Invoice number (sequential, unique)
- Invoice date
- Client's name, address, and GSTIN (if registered)
- Description of services
- HSN/SAC code for your service
- Taxable value (your fee before GST)
- GST rate and amount — split as CGST + SGST (intra-state) or IGST (inter-state)
- Total amount payable
CGST vs SGST vs IGST — what's the difference?
- Intra-state (you and client in same state): GST is split equally into CGST (Central) and SGST (State). At 18%, that's 9% CGST + 9% SGST.
- Inter-state (you and client in different states): The full 18% is charged as IGST (Integrated GST).
Step-by-step: creating a GST invoice
Step 1: Confirm your client's state to determine CGST/SGST vs IGST.
Step 2: Calculate your service fee (the base amount before GST).
Step 3: Apply the GST rate. For 18% on ₹50,000:
- Base: ₹50,000
- CGST (9%): ₹4,500
- SGST (9%): ₹4,500
- Total: ₹59,000
Step 4: Generate the invoice with all mandatory fields and send it as a PDF.
Step 5: File your GST returns (GSTR-1 for outward supplies) by the due date each month or quarter.
Common mistakes to avoid
- Using the wrong GST rate for your service type
- Forgetting to mention the SAC code (most freelance services use SAC 998314 for IT services or 999299 for other professional services)
- Not maintaining sequential invoice numbers
- Charging IGST when you should be charging CGST+SGST or vice versa
The easier way
Doing all of this manually in Word or Excel is error-prone and time-consuming. Freelinq automatically calculates the correct GST based on your client's state, generates a fully compliant PDF invoice, and tracks your GST liability — so you can focus on the work, not the paperwork.