Buying Services on Fiverr ? Here’s How GST Works in India (2026)

With Indian businesses and professionals increasingly using platforms like Fiverr for design, marketing, IT and consulting services, understanding the GST implications has become critical.

This article is designed for persons who are ordering any kind of services from  Fiverr whether for their business/profession or personal use. In simple terms if you are a client of Fiverr from India then what all GST compliances you need to take care of are explained in this blog.

If you are Freelancer providing services through Fiverr to Indian clients or foreign clients or to both , & confused whether you should take registration under GST or not Please read this article GST Registration for Indian Freelancers working on Fiverr 

Impact of GST on Indian Clients ordering services from Fiverr

Scenario 1 : If Indian Client is registered under GST : If client is registered under GST the position is same as before 01 October, 2023. Fiverr’s services  will be treated as import of services for Indian clients  & recipient will pay GST under  Reverse charge u/s 5(3) of IGST Act at 18% as notified in Notification 10/2017 (IT rate). 

Fiverr will not charge any GST in its invoices issued to Indian customers who are registered under GST & provide their GST no. to Fiverr while placing order on Fiverr’s website

Please Note that GST under  RCM is applicable on import of services irrespective of whether they are used for business/professional purpose or personal purposes. But you can claim input tax credit of GST paid under RCM on import of services if the Fiverr’s services were used for Business or Profession purposes.

Scenario 2 : If indian Client is not registered under GST : 

If client is not registered under GST in India then Fiverr will charge GST in its Invoice under forward charge at 18%. Indian client has to bear this GST. Being unregistered He can not claim credit of this GST.

In simple words, GST will be applicable in all cases.

So today, every Indian client using Fiverr has to bear the cost of GST from his own pocket. The only difference is how the GST is paid, which depends on whether the Indian client is registered under GST, or not registered under GST.
If Indian client is registered under GST then it will be paid under Reverse charge mechanism & if not registered then It will be paid under Forward charge by Indian client.

GST compliance for Registered Indian clients buying services from fiverr

1. Determining the amount of GST under RCM : A registered Indian client has to determine the amount of GST to paid on import of services from Fiverrs. GST will be calculated at 18% on Invoice raised by Fiverr or amount paid by Indian client to Fiverr.
2. Issue Self Invoice under RCM : An Indian client is required to issue self Invoice within 30 days of receipt of services from Fiverr as notified in Notification 20/2024 dated 8 October 2024.
3. Payment of GST under RCM : Every Registered Indian user is required to pay GST by the 20th of next month (if opted monthly) or by 25th of next month (if opted quarterly) on the amount of Invoice self issued by him in previous month. Please note that GST under RCM is to be discharged in cash only, you cannot use Input GST to pay GST under RCM. Input of GST paid under RCM is available instantly after payment of the same.
4. Reporting in GSTR-3B : An Indian registered client is required to report IGST paid under RCM on import of services from Fiverr in  Table 3.1(d) & ITC in 4(A)(2).
5. Documentation : For proper GST compliance on Fiverr payments, you should maintain a complete set of following supporting documents which includes the Fiverr invoice, proof of payment (such as bank statement or payment receipt), a self-invoice in case GST is paid under the Reverse Charge Mechanism, and the GST payment challan showing that tax has been deposited with the Government. Keeping these records safely is important, as they may be required during audits or future verification by the tax department.

Understanding What Type of Services Fiverr Provides

When you buy any service from Fiverr (like logo design, website work, digital marketing, writing, etc.),under GST law this is treated as a special type of online service called OIDAR Services
(Online service provided through the internet by a foreign company).

Important : Recent amendments effective 1 October 2023 notified through  Notification No.28/2023- Central Tax have significantly changed how GST applies to such services by foreign OIDAR service providers , subsequent GST implication on  Indian clients. Lets we understand the position before & after this amendment 

Position Before 1 October 2023

Before 1 October 2023, if a foreign company like Fiverr provided services to an Indian client who was not registered under GST, then no GST was charged at all. GST was payable only when the Indian client was registered under GST, and in that case, the client himself had to pay the tax under the Reverse Charge Mechanism. Because of this, Indian users who were not registered under GST were completely outside the GST system for such online services.

Position From 1 October 2023 Onwards

After the new amendment via Notification No.28/2023- Central Tax, every Indian person who takes online services from foreign companies like Fiverr is now covered under GST — whether the person is registered under GST or not, and whether the service is used for business, professional work, or even for personal purposes. To make sure tax is properly collected, the Government has made foreign companies legally responsible for GST compliance. As a result, companies like Fiverr are now required to take GST registration in India, charge GST on their services, pay GST & file GST Returns.

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