GST Invoicing for Indian Freelancers & Consultants
When you work across several clients, the difficult part is often knowing what you have billed, what has been paid and what still needs a follow-up. Lekhiva focuses on that workflow: create the invoice, record each receipt against it, and keep the records your CA needs at month-end — with a Free plan that has no time limit.
First: do you need GST registration at all?
For most service providers, GST registration becomes mandatory once aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in special category states). Below the threshold you can invoice without GST — your invoice simply carries no tax line. Some situations require registration regardless of turnover, and voluntary registration can make sense when your clients want GST invoices for input credit. This is a decision worth confirming with a CA once, rather than guessing invoice by invoice.
If you are registered, the CGST/SGST vs IGST split depends on where your client is: a Pune consultant billing a Delhi-registered company generally charges IGST.
Before you invoice
Agree the deliverables, billing milestone, payment deadline and client details. Confirm your own GST registration status and the tax treatment of the transaction. GST is not automatically applicable just because an invoice template includes a tax field. For services, use the appropriate SAC code on GST invoices, and remember the general rule that a GST invoice for services should be issued within 30 days of supply.
Describe the work clearly
For a monthly consulting engagement, a useful line item identifies the service period and agreed scope. “Consulting services — September, milestone 2” is easier to reconcile than “Professional fees.” Keep the agreement and approval with the invoice, and keep proforma revisions labelled so everyone knows which version the client accepted.
Invoicing foreign clients
Export of services is zero-rated under GST. A registered freelancer can file a Letter of Undertaking (LUT) and invoice overseas clients without charging IGST, subject to conditions — including, in the usual case, receiving payment in convertible foreign exchange. Agree the invoice currency with your client, and keep the INR conversion and the bank remittance advice with your records; your CA will need both. The paperwork is light once set up, but get the first one reviewed.
When clients deduct TDS
Business clients often must deduct TDS on professional fees — commonly 10% under section 194J — so the bank credit is less than your invoice total. Do not chase the difference as an unpaid balance: record the amount received against the invoice and note the TDS separately, then reconcile it with Form 26AS/AIS at tax time. A clean record of invoice totals, receipts and deductions is exactly what prevents year-end surprises.
Track partial payments
If a ₹29,500 invoice receives ₹10,000, the outstanding balance is ₹19,500. Record the payment date and reference without changing the original invoice value. Keep credit notes and adjustments separate from payment receipts. The partial payments guide walks through a full example, and the payment reminder generator drafts the follow-up message with the reconciled balance.
Prepare a monthly accountant handoff
Collect sales invoices, payment references, expenses and unresolved questions in one place. Use our records checklist to see what your CA will ask for. In the app, you can connect your CA to records you approve — they get a free seat, and you can withdraw access at any time.
Start free, stay free
The Free plan — 1 business, 100 invoices and 50 bills a month, plus a free connected-CA seat — covers most independent practices with no time limit. Business plan benefits are also free until 31 December 2026. Try the GST calculator and the free GST invoice generator without an account first if you prefer.
Start freeQuestions about a specific workflow? Tell us about your invoicing needs. This page is general information, not tax advice — confirm thresholds, LUT conditions and TDS treatment for your situation with a qualified professional.
Frequently asked questions
Do freelancers need GST registration in India?
Generally only once aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in special category states). Below that, most freelancers can invoice without GST. Some situations require registration regardless of turnover, so confirm your case with a CA before deciding.
Can I invoice foreign clients without charging GST?
Usually yes. Export of services is zero-rated: registered freelancers can file a Letter of Undertaking (LUT) and invoice without charging IGST, subject to conditions such as receiving payment in convertible foreign exchange. Confirm the conditions and your paperwork with your CA.
Why did my client pay less than the invoice amount?
Many business clients must deduct TDS on professional fees, often 10% under section 194J, before paying you. The deducted amount is not an unpaid balance — it appears against your PAN in Form 26AS/AIS and adjusts against your income tax. Record the receipt and the TDS separately.
Is Lekhiva free for freelancers?
Yes. The Free plan has no time limit: 1 business, 100 invoices and 50 bills a month, and a free seat for a CA you connect. That covers most independent practices; upgrade only if you need more users or features.