Approaching ₹20 lakh turnover
The ₹20 lakh GST registration limit: know before you cross it
GST registration becomes mandatory once aggregate turnover crosses ₹20 lakh. Finding out afterwards means backdated liability. SahiInvoice tracks the running financial-year total and warns you early.
This is you if
- Growing fast enough that last year's numbers don't predict this year's
- Not registered yet, or newly registered
- Unsure whether export receipts count toward the threshold
What usually goes wrong
The threshold is a moving target
It's measured across the financial year, on aggregate turnover — not on any single month or client.
Late registration is expensive
Crossing the line unregistered can mean liability from the date you crossed, not the date you noticed.
No LUT, no zero rating
Registering is only half of it. Without a valid LUT, exports must be made on payment of IGST and refunded later.
How SahiInvoice handles it
- 1
Track turnover continuously
Every imported receipt updates your financial-year total, so the number is current rather than annual.
- 2
Get warned at the right time
Alerts fire as you approach the threshold — with enough runway to register, not after the fact.
- 3
File the LUT next
Once registered, record your LUT so invoices carry the reference and exports stay zero-rated.
- 4
Start filing cleanly
Your first GSTR-1 and GSTR-3B are generated from records you've been keeping all along.
What changes
- No accidental unregistered trading above the limit
- LUT in place before the first export invoice needs it
- A first filing that isn't a scramble
The expensive version of this problem is finding out in March what you should have known in September.
Frequently asked questions
When is GST registration mandatory for a freelancer in India?
Once aggregate turnover in a financial year crosses ₹20 lakh for services (₹10 lakh in special category states). The limit is measured across the whole financial year on all supplies taken together, not per client or per month.
Does export income count toward aggregate turnover?
Yes. Zero-rated exports are still part of aggregate turnover, so a freelancer earning entirely from foreign clients reaches the threshold on the same basis as a domestic supplier.
What happens if I cross the limit without registering?
Liability can arise from the date the threshold was crossed rather than the date you noticed, potentially with interest and penalty. Continuous turnover tracking is the cheapest insurance against this.
Should I register for GST voluntarily before ₹20 lakh?
Many exporters do, because registration plus an LUT lets you issue proper zero-rated export invoices and build a clean compliance record from the start. The trade-off is monthly return filing obligations.
General information about GST on export of services, not tax advice. Confirm treatment with your Chartered Accountant.
Other situations
Freelance developer
GST for freelancers on Toptal and Upwork: every payout, a compliant export invoice
Design studio & small agency
GST for agencies exporting services: multiple clients, multiple currencies, one clean set of books
Consultant with Indian & foreign clients
TDS on consulting income vs zero-rated exports: SahiInvoice tells them apart
Get your next filing done in minutes
Import a statement and see your export invoices, alerts, and GSTR files generated instantly.