For developers, remote contractors and consultants in Bengaluru billing foreign and Indian clients, with a Karnataka GSTIN (state code 29)
If you freelance from Bengaluru, GST becomes compulsory once your billing for the financial year, foreign invoices included, goes past ₹20 lakh. Until then it is a choice, and often a sensible one if a Bengaluru startup wants a GST invoice or you have just paid GST on a new machine. We work out which applies to you, register you with SAC codes that match your contracts, file the LUT so your foreign invoices carry no IGST, and set up the invoice format before your next billing cycle. Registration from ₹999; Freelancer Starter Kit ₹2,499, all excluding GST.
| Question | Short answer (October 2026) |
|---|---|
| When must I register? | Within 30 days of aggregate turnover for the year crossing ₹20 lakh |
| Does foreign billing count? | Yes; exports of services are part of aggregate turnover for your PAN |
| Below ₹20 lakh with foreign clients? | Registration optional; Notification 10/2017-Integrated Tax exempts small inter-state service suppliers |
| GST on a qualifying foreign invoice | Nil IGST under an LUT in Form RFD-11, once registered |
| GSTIN prefix | 29, Karnataka |
| Government fee | Nil for registration, LUT and Udyam |
| Our fee | ₹999 registration; ₹2,499 Freelancer Starter Kit (GST, LUT, Udyam) |
For the general registration process in Karnataka (thresholds for goods, Suvidha Kendra visits, officer timelines) see GST registration in Bangalore. This page is the freelancer's version: who counts as your client, which invoices are exports, and what to do in the month you cross the line.
The freelancers who come to us here mostly sell engineering time. Many live around HSR Layout, Bellandur and Sarjapur Road or in Whitefield and Electronic City, and work for clients abroad through a marketplace, a contractor-payment service or a direct contract. Their questions are about who the customer is, whether a receipt through a payment app counts as foreign exchange, and whether registering at ₹14 lakh is worth it.
Most of them work from a flat on an 11-month lease, a parent's house in Basavanagudi or Rajajinagar, or a co-working seat in Koramangala, Indiranagar or on Outer Ring Road. Any of these works as a principal place of business if you really work there.
GST looks at the person you contract with and who pays you, not at where the work ends up. Find the name and country of the entity on your contract and payment advice. The table shows how common arrangements usually come out; your own terms decide it.
| How the work is set up | Who is usually your recipient | Likely GST position once registered |
|---|---|---|
| Direct contract with a foreign company, paid by bank wire | The foreign company | Export of services if all Section 2(6) IGST conditions hold; nil IGST under LUT |
| Marketplace where the foreign client hires you and the marketplace collects and pays out | Read the marketplace terms: usually the client, sometimes the platform entity | Export if the recipient named in the terms is outside India and you are paid in foreign exchange |
| Contractor-payment or employer-of-record service | The service's contracting entity in the country named in your agreement | Export if that entity is outside India; domestic if an Indian entity contracts with you |
| Placed by an Indian staffing or IT services firm for a foreign end client | The Indian firm | Domestic supply, GST charged (generally 18%); no LUT for this contract |
| Paid by the foreign client's Indian subsidiary in rupees | The Indian subsidiary | Domestic supply; fails the "recipient outside India" condition |
The fee a marketplace deducts from your earnings is a separate service supplied to you; if you are registered and that supplier is abroad, reverse charge may arise. We check it in the threshold review.
The test is aggregate turnover for your PAN from 1 April to 31 March. Add every invoice you raise, to clients in India and abroad, plus any other taxable supply in your name such as consulting on the side or commercial rent. Salary from a job you held earlier in the year does not count; neither does GST itself.
Track the running total monthly. A contractor on ₹1.75 lakh a month will cross in late March; one on ₹2.2 lakh crosses in the tenth month. The national page on GST registration for freelancers covers the full threshold rules and the compulsory cases that apply at any turnover.
A common Bengaluru file: a founder sells a subscription product to customers abroad through a payment gateway, collects in their personal account, and has not incorporated yet. For GST that is the founder supplying services as a proprietor. Overseas customers' subscriptions can be exports if the conditions hold, while Indian customers are domestic supplies, and every rupee counts towards the founder's own ₹20 lakh.
A GSTIN belongs to a PAN. When the company or LLP is formed, it needs a registration of its own; the founder's proprietorship GSTIN does not move across. If turnover requires it before incorporation, register the founder now and cancel that GSTIN once billing moves. Planning the move? See startup accounting in Bangalore and OPC registration in Bangalore.
| Income | How we treat it |
|---|---|
| Ad revenue or programme payouts from a foreign platform entity, received in convertible foreign exchange | Our position: an export of services, zero-rated and declared under your LUT with no IGST, provided the Section 2(6) IGST conditions hold |
| Paid collaboration with an Indian brand or Indian agency | Domestic taxable supply once you are registered, generally at 18% |
| Campaign for a brand abroad that contracts and pays you from abroad | Can be an export if every condition is met |
| Products kept in return for posts | Barter: a supply for non-monetary consideration, and counted in turnover |
| Commission for arranging deals between others | Possible intermediary: see below |
On intermediaries, the place-of-supply rule changed through the Finance Act, 2026. Invoices issued before the change stay under the old position, and whether you are an intermediary at all is decided on your contracts, so we confirm it on the facts before you bill.
Keep the address identical on every document, down to the flat number, and tell us if you are about to move.
| Stage | What we do |
|---|---|
| 1. Billing review | Add up the year so far by client and country, identify each contracting entity and the payment route, and advise register now, register soon or wait |
| 2. Application | REG-01 as a proprietor with your trade name, SAC codes for software, design or consulting work, and your Bengaluru address |
| 3. Authentication | Aadhaar OTP, or a Suvidha Kendra visit if the portal selects you |
| 4. Queries and GSTIN | Reply to any REG-03 query; REG-06 certificate on approval |
| 5. LUT and Udyam (Kit) | RFD-11 for the financial year; Udyam registration in the trade name |
| 6. First invoices | Export and domestic invoice templates, and your return frequency set |
Expect three to seven business days for registration where Aadhaar authentication goes through and no query is raised; longer if the portal asks for a Suvidha Kendra visit or an officer wants a clearer co-working NOC. The LUT is immediate once you have a GSTIN: the ARN is generated on submission.
Timelines are indicative and depend on the portal and the officer; approval cannot be assured.
| Item | Charge |
|---|---|
| GST registration (REG-01) | Nil |
| LUT (RFD-11) | Nil |
| Udyam registration | Nil |
| Karnataka professional tax, if applicable to you | At the state's rates, quoted separately |
| Plan | Professional fee | Includes |
|---|---|---|
| Starter: GST registration for freelancers | ₹999 (one-time) | Billing and contracting-party review, REG-01, authentication support, query reply, GSTIN certificate |
| Standard: Freelancer Starter Kit | ₹2,499 | GST registration, LUT for the financial year and Udyam registration; saves ₹2,598 against ₹5,097 bought separately (₹999 + ₹3,599 LUT + ₹499 Udyam) |
| Pro: Kit + first-year compliance | Custom quote | Kit plus the year's GST returns, advance tax working, ITR and a refund review of export credit where worthwhile |
Fees exclude GST. There is no government fee for GST registration, the LUT or Udyam. Payment is 50% upfront and 50% on delivery.
All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.
| Your year in Bengaluru | Status | Our usual advice |
|---|---|---|
| One foreign client, ₹12 lakh, few purchases | Optional | Usually wait; re-check each quarter |
| Foreign client plus two Bengaluru startups, ₹16 lakh | Optional | Register if the startups need GST invoices |
| Running at ₹2 lakh a month | Compulsory once past ₹20 lakh | Register before you cross and file the LUT the same week |
Our Bengaluru office is at 26 Krishnalaya Complex, 4th Cross, N.R. Road, Bengaluru 560002. We are a CA and CS practice and have supported 2,500+ companies across our offices.
Whatever the route, each export invoice needs a matching record of foreign-currency money reaching you in India. Collect it as you go.
| Payment route | What to keep |
|---|---|
| Bank wire to your Indian account | The bank's inward remittance advice, FIRC or e-FIRA for each credit |
| PayPal, Payoneer, Wise or a similar provider | The provider's transaction record and the remittance advice or FIRA issued through its Indian partner bank, where available |
| Marketplace or contractor-payment withdrawal | The platform statement showing the invoice or milestone, and the bank or provider record of the withdrawal |
Match each record to an invoice number. Under the LUT, payment is expected within one year of the invoice unless more time is allowed.
| Provision | What it covers |
|---|---|
| Section 2(6) and Sections 22 and 25, CGST Act, 2017, with the Karnataka GST Act, 2017 | Aggregate turnover, the threshold, and registration by PAN in each state |
| Notification 10/2017-Integrated Tax | Small inter-state service suppliers, including exporters, exempt from compulsory registration |
| Sections 2(6), 13 and 16, IGST Act, 2017 | Export of services, place of supply and zero rating |
| Section 7, CGST Act, and Rule 27, CGST Rules | Barter as supply and its valuation |
| Rule 96A, CGST Rules, 2017 | LUT in RFD-11 |
Authority sources: gst.gov.in, cbic-gst.gov.in and the Karnataka professional tax portal at ptax.karnataka.gov.in.
A data engineer in Whitefield starts the financial year with a direct contract for a company in the Netherlands at €1,500 a month, about ₹1.35 lakh at ₹90 to the euro, paid by wire. In August she adds a Bengaluru logistics startup at ₹45,000 a month. Her running total is ₹5.4 lakh at the end of July, then ₹1.8 lakh a month from August. It reaches ₹18 lakh at the end of January and ₹19.8 lakh at the end of February; her 1 March invoices take her past ₹20 lakh. She has 30 days from that point to apply.
She applies in the first week of March with her flat in Whitefield as the place of business. The GSTIN arrives, we file the LUT the same day, and her next invoice to the Dutch company reads: client name and address in the Netherlands; service "Data engineering services for March" with its SAC code; €1,500 with the rupee value at the rate used; IGST nil; and the declaration "Supply meant for export under Letter of Undertaking without payment of integrated tax" with the LUT ARN. The startup's invoice carries CGST and SGST, which it claims as credit.
Her euro receipts are backed by the bank's remittance advice, each matched to its invoice. Registering within 30 days means nothing needs regularising; she renews the LUT before her first April invoice.
Hypothetical figures, rounded; the exchange rate and tax depend on the contracts and facts.
In Bengaluru: GST registration in Bangalore, startup accounting in Bangalore, OPC registration in Bangalore and LLP registration in Bangalore. Other cities: GST registration for freelancers in Kolkata and Delhi. Nationally: GST registration for freelancers, LUT filing, MSME/Udyam registration, proprietorship set-up for freelancers and ITR filing for freelancers. Guides: Do freelancers working for foreign clients need GST?, GST on export of services and the LUT and Should a freelancer register a proprietorship?
Only once aggregate turnover for the financial year crosses ₹20 lakh, counting foreign and Indian billing together. Below that it is optional, though you need a GSTIN to file an LUT or give Indian business clients GST invoices.
It can be. Check who your terms name as the recipient and where that entity is, and whether you are paid in foreign exchange. If the recipient is outside India and the other Section 2(6) IGST conditions hold, it is an export, billed with nil IGST under your LUT.
The entity that contracts with you and pays you, as named in your agreement. If it is outside India, the supply can be an export; if an Indian entity contracts with you, the supply is domestic.
No. Salary is not a supply under GST. Only your freelance invoices and other taxable supplies in your name from 1 April are counted.
Yes, if you actually work there. Upload your membership agreement, the operator's no-objection letter in your name and its utility bill for the building, and keep the address the same on every document.
GST registration, the LUT for the financial year and Udyam registration for ₹2,499, excluding GST. Bought separately they cost ₹5,097 (₹999 + ₹3,599 + ₹499), a saving of ₹2,598. Government fees are nil.
Our position is that payouts from a foreign platform entity received in convertible foreign exchange are an export of services, zero-rated under your LUT, provided the Section 2(6) IGST conditions hold. Brand deals with Indian companies are domestic taxable supplies.
No. A GSTIN is tied to a PAN, so a new company or LLP needs its own registration. Your proprietorship GSTIN can be cancelled once billing moves to the company.
It is a separate state levy with its own returns, and the Karnataka portal lets a GST-registered person enrol using the GSTIN. We check whether it applies to you, particularly if you employ staff.
Foreign invoices raised without a valid LUT are exposed to IGST with interest. File a fresh RFD-11 before the first export invoice of each financial year; it is free and the ARN is immediate.
Tell us what you need and a real CA calls you back, with no scripts and no transfers. Call 72783 76654. Mon - Sat, 10:00 AM - 7:00 PM IST.
Reviewed by CorporateWalla's CA and CS team · Last Updated 23 October 2026 · · Sources: GST portal, CBIC GST, CBIC: GST registration flyer (PAN-based, state-specific), Karnataka professional tax portal
Canonical: https://corporatewalla.com/bangalore/gst-registration-for-freelancers
