An Indian freelancer working with a client in the United States may be able to treat the service as an export of services for GST purposes. But the customer’s US address alone does not automatically establish export status.
Section 2(6) of the Integrated Goods and Services Tax Act, 2017 sets out the conditions for export of services. Broadly, the supplier must be located in India, the recipient must be located outside India, the place of supply must be outside India, and payment must be received in convertible foreign exchange or Indian rupees where permitted by the RBI. The law also addresses the relationship between the supplier and recipient.
All relevant conditions must be checked for the actual transaction.
If the service qualifies as an export, it is generally treated as a zero-rated supply under the IGST framework. An eligible registered exporter may use an LUT route to make qualifying exports without payment of integrated GST, subject to the applicable requirements.
If the service does not satisfy the export conditions, the tax treatment may differ. The freelancer should not simply copy the tax treatment used by another developer or consultant.
Review the contract and identify the actual recipient of the service. A platform may facilitate payment, deduct a fee or connect the freelancer with a customer. Its role does not, by itself, settle the GST analysis.
Keep the contract, invoice, delivery records and available payment evidence. Confirm the permitted payment route if the money is converted or settled through an intermediary.
Freelancing has become a serious business model in India. Software developers, designers, consultants, digital marketers, video editors, writers and other professionals increasingly work with clients across India and overseas. But as freelance income grows, questions about GST become harder to ignore. A designer may receive payments from clients in India …
