The new GST tax regime has also not exempted the individuals, software professionals and the freelancers, who dealt in exporting services and software. Under GST law, every individual involved in supplying any goods and service outside the country is mandated to register self for GSTIN.
Like, if a freelancer earns even a single penny outside the state, then he is legally responsible for GST registration in India and also shall not be liable to demand the basic exemption limit of Rs 20 lakh. The Individuals who are selling services overseas will not only have to enlist with GST but also has to file three returns monthly. Before GST, there were no such regulations.
Industry lamented that with this ambiguity the exports of services may be affected to a great extent by the current status. As far as the export of services is concerned, there would be a serious conflict between intention and wordings of GST. Altogether, the increase in indirect taxation will raise the cost of the service.
“The move by the Centre will increase overhead expenses as well as administrative work. We are freelancers with a team of two and it will be very difficult to comply with new norms with limited earnings,” said Manmeet Sirohi (name changed), a Mohali-based freelancer who deals with different companies based in the US, the UK and European countries.
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Expressing similar sentiments, Anuj Aggarwal, managing director, Altruist Technologies (P) Ltd., said, “There are millions of freelancers in India who export software to different countries. This will incur-increase in overhead expenses as they have to hire accountant also and their working capital will be blocked as first they have to pay tax and later on it will be refunded. My suggestion is there should be some threshold limit for registration.”
While, Mr Mastan Singh Chambyal, a CA, and vice-chairman, Chandigarh branch of Institute of Chartered Accountants of India (ICAI), said under GST Act, every individual supplying goods or services will have to comply with the GST law and they will pay a tax called IGST Tax. “There is no minimum exemption limit. Even the freelancers are also covered and have to get themselves registered. Under the GST, exports have been categorised as zero-rated supply and under the new regime, taxes paid on input as well as output supplies are refundable,” he added.
Hi Team, I am a software engineer living in Noida and I am starting a contract with a company based in Jaipur. The work I will do is for a company based in the USA but that customer will pay to Jaipur company and I will get paid based on a contract in INR only. As I am not a full-time employee and will be working as a freelancer I would like to know if I need to register myself for GST, if yes do I need to file invoice with GST, what GST return I need to file and what exemption/rebate I will get on this.
As in essence, you are providing services to a company situated in Jaipur as a freelancer so you can register ourself under GST in case your gross revenue may cross the threshold of 20 lacs during the year.
this blog is helping me out about the GST thank you for providing this type of information kindly make another article like this
thank you for telling me that is important for freelancing actually I want to start it is very useful for me