GST registration for freelancers- a 2024 guide

Definition of Freelancer under GST

The GST act DOES NOT define freelancer. A freelancer is covered under the larger definition of supplier of services. Hence, all the rules and provisions applicable to supplier of services are applicable to freelancers.

Is GST registration required as a freelancer?

Only if you satisfy certain conditions. As a rule of thumb, if you are just starting out as a freelancer, you do not need GST registration. The Government of India has also simplified the requirements for service providers by issuing notification Number 10/2017 under the IGST act.

As per the notification, a service needs to get the GST registration only if his aggregate turnover, calculated on whole India basis exceeds Rs. 20 lakh rupees.

Hence, at the time of writing this post, as a freelancer, the only condition applicable to you is that your turnover exceeds Rs. 20 lakhs in one financial year.

Timeline to get GST registration as a freelancer.

As per Section 25 of the CGST Act, 2017, a person has to apply for a GST registration within 30 days of becoming liable to register.

In context of freelancers, this means that a person has to apply for a registration under GST within 30 days of his/her sales crossing Rs. 20 lakhs.

it is important to note what the law is saying. the law does not require you to acquire GST registration within 30 days. It only wants you apply for it, hence, even if it takes more than 30 days for you to get GST registration, no penalty is levied as no default is made.

Documents required for GST registration

This is the list of common documents required for GST registration:

1. Your photograph. Jpeg/jpg only. 

2. Your PAN card

3. Phone number (linked with Aadhar)

4. Electricity bill of selected registered office.

5. Location of registered office.

6. Location of address on Aadhar card(if different from point 7).

7. Aadhar or PAN card of the owner of registered office.

8. Property tax receipt( if available)

9. Name, Occupation and address of two witnesses.

10. Cancelled Cheque/bank passbook/ Bank statement as a proof of bank account

You have to declare a place as registered office for the business. It can be your family's property or house as well. If the house is in name of your family member, you need a No Objection Certificate from the said family member. However, if the property is in your name, No Objection Certificate is not needed.

In case of rented or leased property, agreement is also required, however the agreement must state that the property can be used for commercial purposes.

How long does it take to acquire GST registration?

In my experience, for 90% of the applications, it takes applicant 25 days to get a GST registration. In rest 20% of the cases, the application is approved in 10 days or less.

This is because the firs communication from the department is received in 10 calendar days. If the officer is satisfied with the application, then the application is approved within 10 days. But that happens only 20% of the time. In rest of the cases, the officer will ask for additional(and sometimes duplicate) information and documents, which will hve to be provided, after which the officer takes another 15 calendar days to decide on the application.

You can re-apply immediately if your application is rejected.

Do OIDAR provisions affect freelancers in India?

No, OIDAR provisions are esigned to cover service providers located outside India providing services to clients located in India. Hence, the same are not applicable to Indian Freelancers.

Should a freelancer register as a Composite dealer?

No, it is not possible to register as a composite dealer as a freelancer. Only restaurants(as service providers) can register under composition scheme.

Consequences for not registering under GST.

As per Section 52(1)(xi) of CGST Act, If you do not register under GST and are caught, you will be liable to a penalty of minimum 10000 and upto 100% of the tax evaded. Thus you will be required to pay bot h: The tax evaed and the penalty amount, bringing the total upto 200% of tax not paid.

And that is all for registrations under GST. At Remote Munshi, we offer free GST registrations for freelancers and Remote Workers. You can email me at akshit@remotemunshi.com to avail the benefit of free GST registration.