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The Rules for Freelancers for GST Registration in India.

The Goods and Services Tax has changed the way of business and made the processes easy for the new entrepreneurs who were seeking to do a startup. The number of freelancers is increasing day by day, as the market is moving to the digital world.

The freelancer business is now becoming a profitable economic activity and helping young entrepreneurs to earn more. The requirement of Digital Marketers is also increasing and it is also affecting the economy. As Digital Marketers are also a part of freelancers we should know the principles of Goods and Services Tax that should be followed by a freelancer.

Which freelancer will need the GST registration?
A freelancer is a person who is not employed by anyone and performs short-term and long-term jobs on a contractual basis. As the freelancing comes in the category of service hence it is also included in the GST by the Government. The freelancers offering service to their clients that have a turnover above Rs. 20 Lakhs should register for GST.  

As the process of GST registration is easy anyone can apply for GST Registration online in India. The GST Registration can help a freelancer to get benefits from the government and legalize the business.

Which freelancers can neglect the process of GST Registration in India?

The freelancers having a turnover up to Rs. 20 Lakhs and having a restriction of their service within their own state can neglect the GST Registration process as they are exempted from the GST Registration. 

How the GST is applied for Freelancers in the Special Category States?

The Special Category States such as the North East States of Uttarakhand, Jammu, Kashmir, and Himachal Pradesh have different GST laws compared to the normal GST laws on the freelancers. To exempt from the GST Registration one should have an annual turnover up to Rs. 20 Lakhs and should serve his services to the people within his own states.

How GST is applied to the Freelancer Writers?

The content writers who write content or blogs for the other websites are not included under GST. The services provided for advertisements include GST. Some of the freelancers sell space from their blog to advertise various businesses and organizations and if the advertiser belongs to the different state then the GST would get applied to him. In the case, if the advertiser is Google or belongs to the abroad countries then the invoice of GST can be raised and the GST law has not cleared that it would apply GST in these cases.

How the GST is beneficial for freelancers?

Earlier, the tax registration was mandatory if the turnover exceeds above Rs. 9 Lakhs but now the GST registration is mandatory when an organization has a turnover above Rs. 40 Lakhs(In case of Special States it is Rs. 20 Lakhs). 
However, the freelancers who provide their services via e-commerce has a compulsion to get GST Registration in India irrespective of their turnover and state.


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