Registration for export of service

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This discussion clarifies whether freelancers earning income from exporting services abroad require GST registration. It explains that while GST registration is generally needed, an exemption exists if your annual turnover is below ₹20 lakhs (or ₹10 lakhs in special category states). You can file a Letter of Undertaking to avoid IGST payments on service exports.

Pragati Sharma

Pragati Sharma (Querist)

18 March 2021 Hi,

I am a freelancer. I make small projects for my clients abroad. I am doing the business from home and earning approx. 5000 USD a month.

Other than this I do not have any other source of income.

Whether GST registration is required for my business?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 March 2021 Yes, GST registration is required. File letter of undertaking in GST portal to avoid IGST payment on export of service.

Pragati Sharma

Pragati Sharma (Querist)

19 March 2021 Under GST Act, export of service is treated as inter state supplies.

As per Notification No. 10/2017-Integrated Tax dated 13.10.2017 as amended vide notification No. 03/2019- Integrated Tax dated 29.01.2019.:
Persons making inter-State supplies of taxable services only and having an aggregate turnover less than
20 lakhs in a financial year (` 10 lakhs in Special Category States of Manipur, Mizoram, Nagaland and Tripura) are exempted from obtaining registration.

a. Whether this notification will also apply in case of export of service also?
b. Registration will not be required for exporter if his turnover is upto Rs. 20 Lacs?

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