Yes, freelancers are also required to pay Goods and Services Tax (GST) in India if their annual income exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for special category states).
According to the GST law, any person who supplies goods or services with an annual turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs for special category states) is required to register for GST. This applies to all types of businesses, including freelancers, consultants, and self-employed professionals.
Once registered for GST, the freelancer is required to collect and pay GST on their supplies of goods or services. The GST rates vary depending on the type of goods or services being supplied. The current GST rates range from 0% to 28%.
It is important for freelancers to maintain proper records of their income, expenses, and GST payments to ensure compliance with the GST law. Failure to register for GST or pay GST on time can result in penalties and legal action by the tax authorities.
In summary, freelancers are required to pay GST in India if their annual income exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for special category states). It is important for freelancers to register for GST and maintain proper records of their income and expenses to ensure compliance with the GST law.