Freelance software consultants and GST Invoices

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G Singh (Querist)
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22 July 2020 Hi,

I am a freelance web developer in Delhi, India, providing software consulting and development services.

I provide my service to two categories -
A) Individuals and Companies OUTSIDE India ( i.e, foreign countries Ex: US).
B) Individuals and Companies in India.

Note1: As a freelancer I don't have a business incorporated as company. So services in this case are provided by an individual (not a company).
Note2: My turnover is expected to remain less than 20 Lakhs per annum.
Note3: My question is regarding the current situation in FY 2020-2021.
Note4: Delivery of my services happen completely online using source code attached to emails, no physical goods are transferred.

I would like to know the following -

1) Can I legally raise an Invoice for my services provided to people in category A and B as an INDIVIDUAL (not a company) ?
2) Do I need to add GST % to my invoices for category A ?
3) Do I need to add GST % to my invoices for category B ?
4) For dealing with category A, do I need to register under GST or am I exempt from GST registration ?
5) For dealing with category B, do I need to register under GST or am I exempt from GST registration ?

If GST registration is applicable -
6) do I need a business to be formally incorporated in India (Ex: a PLC or LLP) to register under GST or that can be done by an individual?

Relevant links you should read before answering:
- https://razorpay.com/learn/gst-registration-guide-freelancers/
- https://cleartax.in/s/impact-analysis-freelancers-under-gst
- https://www.cbic.gov.in/resources//htdocs-cbec/gst/OIDAR.pdf

Let me know, Thanks!

Anshul Jain

Anshul Jain (Expert)
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22 July 2020 Hi,

1) Can I legally raise an Invoice for my services provided to people in category A and B as an INDIVIDUAL (not a company) ?
Answer: You can raise invoice but to as an individual.

2) Do I need to add GST % to my invoices for category A ? 3) Do I need to add GST % to my invoices for category B ?
Answer: Yes, because of answer to the below query

4) For dealing with category A, do I need to register under GST or am I exempt from GST registration ?
5) For dealing with category B, do I need to register under GST or am I exempt from GST registration ?
Answer: You have to get registered under GST, it's mandatory for you.

If GST registration is applicable - 6) do I need a business to be formally incorporated in India (Ex: a PLC or LLP) to register under GST or that can be done by an individual?
Answer: You need to have a formal business structure.

For additional detail connect at adv.anshuljn at gmail dot com

Lekhraj sood

Lekhraj sood (Expert)
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22 July 2020 1. yes, you can raise invoice as an individual in you name/trade name.
2. For A category , you need not charge GST provided you follow the procedure for export of services. 3.For Category B, you need to charge GST.
3. As you are providing services to clients outside India, you have to necessarily get registered under GST.
5.And then you will also be treated as GST registered for category B and will need to charge GST.
6. Not necessary , you can continue to run business as an individual/as proprietor.

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