GST for Indian Freelancers working on Fiverr

GST for Indian freelancers on Fiverr can be confusing, especially when you’re dealing with international payments, currency conversion, and platform commissions. This guide explains everything you need to know – GST registration requirements, export of services, FIRC, LUT filing, reverse charge mechanism and more. If you’re a Fiverr freelancer in India, this blog is your complete GST compliance checklist.

GST registration is not mandatory 

(A.) Turnover threshold for GST Registration : A Freelancer is not required to register under GST if his aggregate turnover does not exceed Rs. 20 lakh (Normal states) & Rs. 10 lakh (Special category states) in a financial year, it is applicable even if you providing services to the clients located in same state, outside state or even outside India (i.e. export of services). 

(B.) Section 24(i) : GST registration is mandatory if a person is providing interstate supply of goods or services, irrespective of his turnover.

Special Exemption for Service Providers/Freelancers 

A special Notification no. 10/2017 – IGST was issued to exempt the service providers if they are having turnover of less than Rs 20 Lakh for a financial year.

(C.) Section 24(ix) : Every person who is supplying any goods or services through an e-commerce operator [except section 9(5)], is required to take mandatory registration, if such E-commerce operator is liable to collect TCS under GST u/s  52.

For this first we need to check whether Fiverr is liable to collect TCS u/s 52 of CGST Act, 2017 ?

Every E-commerce operator is liable to collect TCS if he is collecting consideration of supply on behalf of supplier (Freelancer) & client is located in India.

Indian Freelancers are providing services to both Indian & foreign clients through Fiverr, then Fiverr collects consideration on behalf of freelancers & remit the consideration after deducting its fee & taxes, so It is determined that Fiverr is liable to collect TCS under GST.

Fiverr is registered under GST as Tax collector & it has TCS GST Number for various states. For example TCS GSTIN of Fiverr for state of Maharashtra is 27AAECF3149G1C0

Likewise Fiverr is registered as a TCS collector in 28 states. It is very important to note here that the TCS GST Number is different from the Normal GST Number.

Now, as Fiverr is registered as a TCS collector, it means every freelancer has to register mandatory even if he is providing services of Rs.1 ?

No, not mandatory if freelancer doesn’t cross the GST turnover threshold of GST.

Special Exemption for Service Providers/Freelancers

Service Providers working through any ECO liable to collect TCS are exempted from taking mandatory registration unless their turnover exceeds the registration threshold under GST via Notification 65/2017 dated 15 November 2017.

Important Note : It is to be noted that according to section 52, TCS is to be deducted on taxable supplies only. Many Freelancers think that if they are doing 100% export of service so TCS will not be deducted from their earnings. But it is wrong, Export of goods & services are Zero rated supply which are taxable at 0% rate, they are not exempt under GST. Also Read – Difference between Zero Rated, Nil Rated, Non-GST and Exempt Supplies

GST Registration is mandatory 

• if the turnover of Freelancer’s  exceeds Rs.20 lakh for Normal category states & Rs. 10 lacs for special category states 
• According to section 24(iii) GST registration is mandatory irrespective of turnover threshold, if a person is required to pay GST under Reverse charge.

When does a freelancer need to register under GST due to reverse charge provisions?

A freelancer providing services is need to register under GST when he is liable to pay GST under the Reverse Charge Mechanism (RCM). A Freelancer is liable to pay GST under RCM  if he is receiving any services (except OIDAR services) from person located outside India. Notification No 10/2017 Integrated tax (Rate)

In other words if a Freelancer is liable to register under GST due to reverse charge provisions if he is doing import of services.

Freelancers need to check the nature of impot of services if it is OIDAR Services then Registration rules are different & if it is import of any other service (except OIDAR) then Registration rules vary.

How GST works for Indian freelancers selling services on Fiverr

Invoicing for Freelancers working on Fiverr

Before understanding Invoicing for Fiverr Freelancers, we need to understand GST  Model of Fiverr. Fiverr is Registered as Non- Resident OIDAR service provider under Indian GST with GSTIN 9924ISR29001OSH.  Fiverr issues Invoices to all Clients (Domestic & Global) in its own name showing Fiverr as the Service Provider (OIDAR) to the Client (end user) without mentioning any single detail of Freelancer (Actual supplier) according to first proviso of section 14 of IGST Act, 2017.

Fiverr does not issue invoices on behalf of freelancers like other ECO (Upwork) do, nor it shares buyer’s billing information with freelancers to issue invoices for the purchases made from their Gig.

However, Freelancers who are registered under GST can issue invoices to Fiverr to report their earnings in GST Returns.

The Freelancers who are registered under GST can use below format for GST compliance

Invoicing by Fiverr to Freelancers

When a freelancer uses services like

• Seller Plus 
• Fiverr Ads

If Freelancer is unregistered : Fiverr will issue invoice to freelancer with 18% GST. Fiverr being OIDAR service provider & freelancer will be NTOR (Non taxable online recipient)

If Freelancer is Registered    :  He is liable to pay GST under RCM on above services provided By Fiverr.

When Freelancers pay with Fiverr credits, Fiverr does not issue any  invoice.

How Fiverr releases payment to Freelancers

Fiverr Mostly uses Paypal to make payment to Freelancers. Other methods which Fiverr use include Bank transfer via payoneer, Fiverr revenue card etc. When clients make orders, they pay Fiverr. Once that order is completed, 80% of the funds (excluding GST) are applied to Freelancer’s account. Fiverr does not charge a withdrawal fee, but PayPal/Payoneer  charge their payment gateway fee.

For Example : A freelancer in India receives a payout of $500 from a client via Fiverr. Fiverr charges a 20% commission ($100), Hence Freelancer receives $400 in his account.

What a Fiverr Freelancers will report in GST returns

Freelancer will report Gross amount including commission by Fiverr, Paypal charges & TDS in his GST Returns. Freelancer can opt for not paying GST & file LUT (Letter of undertaking) or pay IGST on export of services & claim Refund Later.

Please not LUT (Letter of undertaking) is to be filed before beginning of Financial year to export without payment of GST.

Indian Freelancer must have FIRC to prove that the payment has been received in foreign convertible currency, which is a necessary condition for treating it as an export of services.

To know more on GST Return reporting by Fiverr freelancer, FIRC, LUT & refund please read GST for Freelancers (2025): Registration, GST Rates, Rules & Exemption

TDS (withhold tax) by Fiverr on Freelancer’s earning

Freelancer earning through Fiverr in India, you should know about TDS (Tax Deducted at Source) under Section 194O of the Income Tax Act. Fiverr, being an online platform (or e-commerce operator), is required to deduct 0.1% TDS on your total earnings before sending the payment to you. This deducted amount is shown in your Form 26AS or AIS, and you can claim it as a tax credit while filing your income tax return. However, if you don’t provide your PAN, Fiverr may deduct TDS at a higher rate of 5%. So, always update your PAN in Fiverr records to avoid extra deductions.

TCS under GST by Fiverr

If you’re a freelancer providing services through platforms like Fiverr, it’s important to understand the concept of TCS (Tax Collected at Source) under the Goods and Services Tax (GST) regime in India.

What is TCS under GST?

TCS stands for Tax Collected at Source, and under GST, it applies to e-commerce operators (ECOs) like Fiverr. As per Section 52 of the CGST Act, ECOs are required to collect 0.5% TCS (0.25% CGST + 0.25% SGST or 0.50% IGST) on the net value of taxable services provided through their platform.

This means, if you’re a freelancer selling services through Fiverr and you are registered under GST, Fiverr will deduct 0.5% of your earnings as TCS before releasing the payment to you.

 How is TCS Reflected for Freelancers?

Fiverr deposits the collected TCS to the GST department under your GSTIN. This amount gets reflected in your GSTR-2A or GSTR-2B auto-drafted return on the GST portal. As a freelancer, you can claim this amount as Input Tax Credit (ITC) while filing your monthly GST returns.

Example:
If you earn Rs 50,000 through Fiverr, ₹Rs 250 (0.50%) may be deducted as TCS. This Rs 250 will appear in your GSTR-2A and can be claimed as credit while paying your GST liability.

What a freelancer needs to select in tax form of Fiverr for “How is your service taxed ?”

Taxable 

 If a Freelancer is registered under GST & providing taxable services. TCS under GST will be applicable at 0.50%

Export 

Even if you are exporting services (to clients outside India), Fiverr may still deduct TCS due to its obligations as an ECO. Export of services under GST is zero-rated, meaning no GST is payable. However, TCS may still be deducted and you can still claim the TCS credit, or adjust it against future GST liabilities.

Reverse Charge

When a freelancer is required to pay GST under the Reverse Charge Mechanism, TCS does not apply, as Fiverr is considered the actual supplier of services instead of the freelancer—going beyond its role as just an e-commerce operator (ECO).

Exempt

If all services provided by freelancers on Fiverr are exempted or Nil rated under GST then this option is to be selected. No TCS is applicable on exempt supplies under section 52 of CGST Act.

Important points for TCS under GST

• The rate of TCS is changed from 10 July 2024 from 1% to 0.5%
• TCS is applicable only on taxable supplies u/s 52 of CGST Act.
• TCS is applicable only if you’re registered under GST.
• Fiverr deducts TCS at 0.5% on your net earnings.
• You can view and claim this TCS in your GSTR-2A/2B.
• Even for export services, TCS may be deducted.
• Regular reconciliation is crucial to avoid mismatches and ensure proper credit claim.