Introduction
Freelancers and professionals often struggle with GST and Income Tax compliance in India. From when to register to how to claim deductions — here’s a simple, expert-backed guide covering key rules, government clarifications, and practical tips.
Who Needs To Register Under GST?
- If your gross receipts exceed ₹20 lakh (₹10 lakh for special category states), GST registration is mandatory.
- Some professionals like architects, chartered accountants, and consultants fall under this rule.
- Refer: Section 22 of CGST Act
Expert Tip: Keep separate records for taxable and exempt services to avoid mismatches during audits.
GST and Income Tax: Key Differences
| Aspect | GST | Income Tax |
|---|---|---|
| Nature | Indirect Tax | Direct Tax |
| When applicable? | Cross turnover threshold | Earn taxable income above basic exemption |
| Filing frequency | Monthly/quarterly returns | Annual ITR filing |
| Key forms | GSTR-1, GSTR-3B | ITR-3 or ITR-4 |
| Penalties | Late fees, interest | Interest, penalty for concealment |
How To File GST Returns
- Monthly: File GSTR-1 (sales) and GSTR-3B (summary return).
- Due Dates: Usually 11th and 20th of next month.
- Payment: Pay tax after adjusting input tax credit.
Reference: CBIC GST Portal
Income Tax Filing for Freelancers
- Forms: ITR-3 (if maintaining books) or ITR-4 (Presumptive taxation u/s 44ADA).
- Due Date: 31st July (FY 2024–25 extended to 15th September 2025 as per CBDT Circular No. 06/2025).
- Deductions: Claim expenses like internet, rent, depreciation on laptop.
Practical Tax-Saving Tips
✅ Opt for Section 44ADA if eligible — pay tax on 50% of gross receipts without maintaining books.
✅ Keep separate bank account for business income.
✅ Save invoices and bills to claim legitimate deductions.
FAQs: GST and Income Tax For Freelancers
Q1: Can a freelancer below ₹20 lakh register for GST?
Yes, voluntary registration is allowed to claim input credit.
Q2: Is TDS applicable to freelancers?
Yes, clients may deduct TDS under Section 194J (10% on professional fees).
Q3: Can I switch from normal to presumptive taxation?
Allowed, but consult a tax advisor for implications.
Closing
Staying compliant with GST and Income Tax for freelancers and professionals need not be stressful. Stay updated with government rules, maintain clean records, and file returns on time. For hassle-free tax filing and expert help, reach out to Efiletax today!
Summary
Freelancers and professionals must comply with both GST and Income Tax if they cross set thresholds. This guide simplifies registration, filing, and tax-saving strategies. Stay compliant, avoid penalties, and focus on your work — Efiletax can help you file returns easily!