When does a freelancer need a GSTIN?

Once aggregate turnover (across all GSTINs on the same PAN) crosses Rs. 20 lakh in a financial year, GST registration becomes mandatory under Section 22. For services the Rs. 10 lakh threshold applies in only four States — Nagaland, Manipur, Mizoram and Tripura — not the eleven "special category states" most sites list; Explanation (iii) to Section 22 excludes the other seven. The Rs. 40 lakh figure is for suppliers of goods only and never applies to a freelancer supplying services. Voluntary registration is allowed below the threshold and is often worth it once your B2B clients want ITC.

Do I need a separate GSTIN for each state I work in?

Yes — Section 25(1) requires a separate registration in each State or Union Territory from which you make taxable supplies. A Bangalore freelancer with a second office in Mumbai needs two GSTINs (one each on KA and MH state codes).

Identifiers · Glossary

GSTIN

15-character alphanumeric GST registration number assigned to every GST-registered taxpayer.

GSTIN (Goods and Services Tax Identification Number) is a 15-character alphanumeric code assigned under Section 25 of the CGST Act, 2017 to every GST-registered taxpayer in India. The format is:

- Characters 1-2: State code (e.g., 27 for Maharashtra, 29 for Karnataka)
- Characters 3-12: PAN of the taxpayer
- Character 13: Entity number for the same PAN in the same state
- Character 14: "Z" (default)
- Character 15: Checksum digit

The state code drives whether a supply is intra-state (same first 2 digits) or inter-state (different first 2 digits). Freelancers crossing the Rs. 20 lakh annual turnover threshold become liable to register and obtain a GSTIN. The lower Rs. 10 lakh threshold applies in only four States — Nagaland, Manipur, Mizoram and Tripura. Most published lists name eleven "special category states", but Explanation (iii) to Section 22 of the CGST Act excludes Jammu and Kashmir plus Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand, so a service provider in those seven is at Rs. 20 lakh.

Worked example

Priya’s GSTIN is 27AABCP1234A1Z9: "27" = Maharashtra state code, "AABCP1234A" = her PAN, "1" = first entity registration on this PAN, "Z" = default, "9" = checksum. A client whose GSTIN starts with "27" is intra-state (CGST+SGST); anything else is inter-state (IGST).

Practitioner tip

Always validate a client GSTIN before raising the first invoice — the GSTN GSTIN search tool returns the legal name and registration status, and catches typos or deregistered numbers that would otherwise create 2B-reconciliation hell for both sides.

Frequently asked

When does a freelancer need a GSTIN?: Once aggregate turnover (across all GSTINs on the same PAN) crosses Rs. 20 lakh in a financial year, GST registration becomes mandatory under Section 22. For services the Rs. 10 lakh threshold applies in only four States — Nagaland, Manipur, Mizoram and Tripura — not the eleven "special category states" most sites list; Explanation (iii) to Section 22 excludes the other seven. The Rs. 40 lakh figure is for suppliers of goods only and never applies to a freelancer supplying services. Voluntary registration is allowed below the threshold and is often worth it once your B2B clients want ITC.
Do I need a separate GSTIN for each state I work in?: Yes — Section 25(1) requires a separate registration in each State or Union Territory from which you make taxable supplies. A Bangalore freelancer with a second office in Mumbai needs two GSTINs (one each on KA and MH state codes).

PAN (Permanent Account Number) — 10-character alphanumeric identifier issued by the Income Tax Department.
CGST, SGST, and IGST — Three GST components: Central GST, State GST, and Integrated GST.
SAC (Services Accounting Code) — 6-digit code that classifies services for GST reporting (the services equivalent of HSN).

Frequently asked

Related glossary terms