Tax and Compliance Basics for Indian Freelancers
GST thresholds, invoicing norms, and when to formalize as a private limited entity.
Nestlancer Editorial
Cross-border income adds GST and filing complexity—ignore compliance until a client or bank asks, and you scramble during refund season.
GST overview
- Export of services often zero-rated with LUT—confirm with CA annually
- Domestic clients may require GST invoices above threshold
- Register voluntarily if B2B clients expect GSTIN on invoices
Invoicing norms
- SAC code for IT services
- FIRC for foreign remittance documentation
- Clear currency and conversion notes on invoice
Entity choice
| Structure | When |
|---|---|
| Sole proprietorship | Early solo, low liability |
| LLP / Pvt Ltd | Higher revenue, risk, multiple partners |
Quarterly habits
Set aside 25–30% of profit for tax provisions. CA review before year-end—not March panic.
International payments
Razorpay, Wise, PayPal—understand fees and TDS implications per route.
This is not legal advice—engage a chartered accountant familiar with freelance tech exports early.
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