DofreelancersneedGSTregistration?
The threshold is the famous part. The situations that require registration regardless of turnover are the part that catches people.
6 minute read · Updated
Short answer
Registration is triggered by aggregate annual turnover crossing a threshold, and separately by certain situations that require registration regardless of turnover — including some inter-state supplies and supply through specified platforms. Once registered you must issue tax invoices showing your GSTIN and charge GST correctly by place of supply; until you are registered you issue ordinary invoices with no tax line and no GSTIN. Showing tax or a GSTIN you do not hold is a serious offence and hands your client a credit they cannot claim, so if you are anywhere near a threshold, confirm your position with an accountant rather than a threshold table.
The two ways registration is triggered
Most explanations mention only the first, which is why the second causes problems.
Aggregate annual turnover crossing a specified threshold. The threshold differs for goods and services, and is lower for special category states.
Certain circumstances require registration whatever your turnover — some inter-state supplies, supply through specified platforms, and others.
No figures on this page, deliberately. Thresholds differ between goods and services and between states, they have been revised, and “aggregate turnover” is a defined term that includes more than you might assume. A stale number here would be worse than no number — ask an accountant what applies to you.
What changes on the invoice
| Not registered | Registered | |
|---|---|---|
| Document | Ordinary invoice | Tax invoice |
| GSTIN shown | No — you have none | Yes, yours and the client's |
| Tax charged | None | CGST + SGST, or IGST |
| Place of supply | Not applicable | Required |
| HSN / SAC | Not applicable | Required, digits by turnover |
| Client can claim credit | No | Yes |
The expensive mistake
Charging GST, or showing a GSTIN, before you are registered. It happens innocently — a client asks for a “GST invoice”, a template has a tax row in it, someone copies a format from a friend who is registered.
It is a serious offence, and it also damages the client: they claim a credit against a registration that does not exist, and it is disallowed at their end, usually at an audit long after you have finished working with them.
If you are not registered, issue an ordinary invoice with no tax line and no GSTIN, and say so plainly if asked. “I am not GST registered, so no GST is charged on this invoice” is a complete and unembarrassing answer.
Registering before you have to
Some freelancers register voluntarily below the threshold. The arguments each way are practical rather than technical:
- For: larger clients are more comfortable with registered suppliers, you can claim input credit on your own purchases, and you avoid the disruption of crossing the threshold mid-year.
- Against: returns to file on a schedule, an accountant to pay, and your effective price rises for clients who cannot claim the credit — individuals and unregistered businesses.
The reference
Freelance invoice format
How a freelancer or consultant in India should invoice: GST or no GST, TDS on your fee, invoicing overseas clients, and getting paid on time.
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Questions people ask
It depends on your aggregate annual turnover against the applicable threshold, and separately on whether you fall into a situation that requires registration regardless of turnover — certain inter-state supplies and supply through specified platforms among them. Because both tests depend on specifics, confirm your position with an accountant.
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