Is It Necessary for an Indian Freelancer to Apply for GST and How to Apply for It

For Indian freelancers, understanding the need for and procedure to apply for GST is crucial to ensure compliance with tax regulations. This article provides a comprehensive guide on GST applicability and the registration process for freelancers.

Understanding GST Applicability for Freelancers

Goods and Services Tax (GST) is applicable for any business or service if the gross receipts or turnover exceeds 20 lakhs (approximately INR 2 million) in a financial year. This threshold applies equally to Indian freelancers. If your anticipated receipts are likely to exceed 20 lakhs in a financial year, it would be advisable to apply for GST registration now or wait until your actual turnover meets the threshold.

However, keep in mind that if you choose to apply for GST now, you will need to charge GST on every bill, even if your receipts are currently below the 20 lakh threshold.

Key Points on GST Registration for Freelancers

Below are some key considerations and steps for GST registration for Indian freelancers:

Basics of GST: GST is a comprehensive indirect tax that subsumes various other taxes such as Value Added Tax (VAT), Central Excise Duty, and Service Tax. Application Process: GST application can be made online through the GST portal. The website offers a detailed guide on the documents required for GST registration. Cost Considerations: For those seeking GST registration, various service providers offer assistance for a fee. For instance, a service provider may charge 500 INR and can be contacted via WhatsApp at 7568890985 for any assistance needed.

Conditions for Compulsory GST Registration

Freelancers must compulsorily apply for GST if any of the following conditions apply:

Services are delivered outside India. Every person registered under the previous Service Tax law must also register under the GST regime. Gross receipts without deduction of expenses for services provided is greater than 20 lakhs (Rs 20,000,000) or 10 lakhs (Rs 10,000,000) for Special Category States. Those paying tax under the reverse charge mechanism.

Procedure for GST Registration as a Tour Operator and Travel Agent

The process for GST registration as a tour operator and travel agent involves the following steps:

First, visit the GST portal. Click on the 'Register Now' link under the 'Taxpayers' tab. Select 'New Registration' and proceed to fill the required details: Drop-down menu: Select 'Taxpayer' under 'I am a'. State and District: Select the respective state and district from the provided dropdown. Business Name and PAN: Enter the name and PAN of the business accordingly. Email ID and Mobile Number: Provide a valid email ID and mobile number, as OTPs will be sent to these. Upload the image shown on the screen and click on 'Proceed'. Enter the OTP sent to your email ID and mobile number and click on 'Proceed'. Note down the Temporary Reference Number (TRN). Go back to the GST portal and click on 'Register' under the 'Taxpayers' menu. Select 'Temporary Reference Number (TRN)' and enter your TRN and the captcha details. Enter the OTP sent to your registered email ID and mobile number and click on 'Proceed'. Fill in all the relevant details on the next page and submit the necessary documents. Required documents include: Photographs Address proof where the business is located The constitution of the taxpayer Select 'Tour Operator Service' under the Business Tab. Submit the application using an Electronic Verification Code (EVC) sent to the registered mobile number or choose to submit using a different method.

Once the application is submitted, a success message will be displayed on the screen, along with the Application Reference Number (ARN) sent to the registered email ID and mobile number.