Freelancers — designers, developers, writers, consultants, marketers — often start out unsure how to bill clients properly. The good news is that a freelance invoice is simple once you know two things: whether GST applies to you, and whether your client is in India or abroad.
Do you even need GST?
GST registration becomes mandatory only when your aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in special-category states), or you fall into a compulsory-registration category. Below that, you can invoice clients without GST — as an ordinary bill with no tax line.
Many freelancers register voluntarily anyway, because business clients prefer a GST invoice they can claim input tax credit on. Note one important nuance: export of services and inter-state supply rules can affect whether you need to register, so if you work with clients in other states or abroad, check your position carefully.
Invoicing an Indian client
If you are not registered, issue a clean bill with your details, the client’s details, a description of the work, the fee, and your payment details — no GST.
If you are registered, issue a tax invoice with:
- Your name, address and GSTIN
- Client’s name, address and GSTIN (if registered)
- A unique invoice number and date
- Description of services (e.g. “Website design — 10 pages”)
- SAC code (e.g. 9983 for professional services)
- Taxable value (your fee)
- GST @ 18% — CGST + SGST if same state, IGST if different states
- Total amount
Invoicing a foreign client (export of services)
This is where freelancers earning in dollars or euros need to be careful. A service to a client outside India, paid in convertible foreign exchange, generally qualifies as export of services — a zero-rated supply under GST. That means:
- If registered, you can export without paying IGST by filing a Letter of Undertaking (LUT) on the GST portal, or
- Pay IGST and claim a refund.
Your export invoice should be marked accordingly (e.g. “Supply meant for export under LUT — without payment of IGST”) and show the currency and, ideally, the INR equivalent. Confirm you satisfy all the conditions for export of services before treating income as zero-rated.
A quick example
A freelance developer (registered in Delhi) bills a Bangalore startup ₹1,00,000:
- Fee (taxable value): ₹1,00,000
- SAC: 9983
- IGST @ 18% (inter-state): ₹18,000
- Invoice total: ₹1,18,000
- The client may deduct TDS @ 10% under 194J (₹10,000) and pay ₹1,08,000 net.
GST and TDS are separate
Just like with rent, don’t confuse the two. GST is charged by you on top of your fee (if registered). TDS under Section 194J is deducted by your business client from the fee and deposited against your PAN. You get the TDS back as credit when you file your income-tax return; the two never cancel each other out.
A clean freelancer invoice — the essentials
Whether or not you charge GST, a professional invoice always has:
- A clear “Invoice” heading and unique number
- Your name/brand and contact details
- The client’s name and details
- Date and payment due date
- A line-item description of the work and the amount
- Total payable, and GST breakup if applicable
- Bank/UPI details for payment
The bottom line
If you are below ₹20 lakh, invoice without GST. Once registered, charge 18% with the correct CGST/SGST or IGST split and your SAC code, and for foreign clients treat the work as zero-rated export under an LUT. Keep GST and TDS mentally separate.
Create a professional freelancer invoice — with or without GST, in INR or foreign currency — free and in under a minute with the RaiseBill Bill Maker.