Question 1

Do Indian freelancers need GST registration if annual turnover is under ₹20 Lakhs?

Accepted Answer

Under Section 22 of the CGST Act, service providers with aggregate annual turnover below ₹20 Lakhs (₹10 Lakhs in Special Category States like Manipur, Mizoram, Nagaland, and Tripura) are exempt from mandatory GST registration. If unregistered, you can generate clean Non-GST Bills or commercial invoices without charging CGST/SGST/IGST.

Question 2

How do freelancers invoice international clients without charging 18% GST?

Accepted Answer

Export of services is treated as a 'Zero-Rated Supply' under Section 16 of the IGST Act. Freelancers registered under GST can file a Letter of Undertaking (LUT) online in Form GST RFD-11 on the GST portal at the start of each financial year. With an active LUT, you can issue invoices in USD/EUR/INR with 0% IGST, provided payment is received in convertible foreign exchange (or INR via authorized mechanisms) with a Foreign Inward Remittance Certificate (FIRC/FIRS).

Question 3

What is SAC code 998314 and why is it essential for software freelancers?

Accepted Answer

SAC 998314 covers 'Information technology (IT) design and development services', including full-stack software development, web applications, mobile app coding, and UI/UX design. The standard GST rate is 18%. Quoting the precise 6-digit SAC code prevents invoice rejection and enables corporate clients to claim Input Tax Credit (ITC).

Question 4

How does TDS under Section 194J affect freelance invoices?

Accepted Answer

Indian business clients deducting payment for professional or technical services typically withhold Tax Deducted at Source (TDS) under Section 194J of the Income Tax Act (usually 10% for professional services or 2% for purely technical services). Mention your PAN prominently on the invoice so the client credits TDS directly to your PAN in Form 26AS / AIS.

Question 5

Can freelancers claim Input Tax Credit (ITC) on laptops and software tools?

Accepted Answer

Yes! If you possess an active GST registration, you can claim 100% ITC on GST paid for business expenses, including laptops, monitors, broadband internet bills, cloud hosting (AWS/GCP), and software subscriptions (Figma, Adobe, GitHub). This directly reduces your net GST liability.

Question 6

Can I collect instant payments via UPI QR Code on my invoice?

Accepted Answer

Yes. SwiftGST automatically generates an embedded, secure UPI payment QR code directly onto your invoice PDF based on your UPI VPA (e.g. yourname@okhdfcbank). Clients scanning the QR code with GPay, PhonePe, or Paytm see your invoice number and exact amount pre-filled.

SAC Code	Service Category	Applicable GST	Examples
998314	IT Design & Development	18%	React/Node apps, mobile apps, UI/UX Figma design
998313	IT Consulting & Architecture	18%	Cloud audit, AWS setup, microservice system design
998365	Internet Advertising & SEO	18%	Google Ads management, SEO audits, social media growth
998391	Specialty Content Writing	18%	Technical documentation, ghostwriting, copywriting

Freelancer & IT Consultant GST Invoice Generator

How to Bill Under GST as a Freelancer in India

Step-by-Step Freelancer GST Compliance Guidelines

Verify Your Turnover Threshold

File LUT for Foreign Clients (0% IGST)

Use Standard SAC Codes (998314)

Track TDS Credits Under Section 194J

Common SAC Codes for Indian Freelancers & Developers

Frequently Asked Questions (Freelancer GST Invoicing)

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