Master in Accounts & high court Advocate
9610 Points
Posted on 02 June 2025
As a freelancer providing software development services to international clients, you're considered an exporter of services.
According to the GST law, exports are treated as zero-rated supplies, meaning no GST is levied on the export of goods or services.
However, this doesn't necessarily clarify the registration requirement.
*GST Registration Limit for Service Exporters* In India, the threshold limit for GST registration is generally ₹40 lakhs for service providers.
However, there are some exceptions and special cases.: -
*Special Category States*: For states like Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand, the threshold limit is ₹10 lakhs. -
*Voluntary Registration*: Even if your turnover is below the threshold limit, you can still register voluntarily under GST.
*GST Registration Requirement Below ₹20 Lakhs* For service exporters like yourself, there's no specific exemption or special threshold limit mentioned below ₹20 lakhs.
However, if your aggregate turnover exceeds ₹40 lakhs (or ₹10 lakhs for special category states), you'll need to register for GST.
*Key Points to Consider* -
*Zero-Rated Supplies*: As an exporter, you can claim a refund of input tax credit (ITC) on goods and services used for export purposes. -
*GST Exemption*: Certain software services might be exempt from GST or have a Nil GST rate, but this depends on the specific type of software and its usage.
They can provide personalized guidance based on your business needs and turnover.