Freelancers earning in foreign currency through Upwork, Fiverr, Deel, or wire transfers often wonder if GST registration applies to export income.
our expert CA breaks down threshold rules, Export of Services criteria, and Form GST LUT filing.
1. Registration Thresholds
- Domestic Clients: GST required if aggregate turnover crosses ₹20 Lakhs.
- Foreign Export Clients: If turnover crosses ₹20 Lakhs, GST registration is 100% mandatory even though tax rate on export is zero!
2. Form GST LUT (Letter of Undertaking)
Filing Form GST RFD-11 (LUT) at the start of every financial year allows you to bill foreign clients at 0% GST legally without paying 18% tax upfront.
How to File LUT:
- Log in to GST Portal -> Services -> User Services -> Furnish Letter of Undertaking (LUT).
- Select FY (2026-2027) & fill 2 witness details.
- Sign with EVC OTP and download acknowledgment.