GST for freelancers

vinith.r · February 6, 2022, 5:41pm

The officials require you to fill in the Professional Tax (P.T) registration details on the GST Portal.

Here’s how you can do it:
Dashboard → Registration → Amendment to Non-Core Fields → State Specific Info

Add the relevant details and submit the form.

Hope this helps and feel free to reach out for any further queries.

ashish_shah · February 8, 2022, 6:06am

@vinith.r so will it be PTEC or PTRC for me?
As I am a freelancer, I believe it will be PTEC.
Please correct me if I am wrong.

vinith.r · February 8, 2022, 7:11am

@ashish_shah

Yes you are correct, as a freelancer it will be PTEC for you. (assuming you have no employees)

The form you receive upon payment will have the details.
You’ll have to submit the enrolment number under PTEC, which is generally you GSTIN itself but varies from state to state.

Hope I could answer that well.
If you have any further queries please let me know the State where you are liable to pay P.T, so that I can help you accordingly.

ashish_shah · February 8, 2022, 7:16am

@vinith.r
As I am located in Maharashtra, I believe I need to register on MahaGST website for PTEC.
One question I have is, will my PTEC liability will be only for the months for which I am freelancer during FY21-22 ? Because I was employed till 09-Jun-2021 and for those months (Apr, May, Jun) my employer had deducted my Professional Tax.

vinith.r · February 8, 2022, 10:12am

@ashish_shah

I’m not familiar with the PT Act of Maharashtra so I don’t think I’ll be able to help you here. (cause there are different slabs and no. min days rule for different states)

@Yash_Kaviya could you assist.

Yash_Kaviya · February 9, 2022, 7:51am

Hi @ashish_shah, there will be no monthly liability for freelancers and there shall be only an annual liability in the specific case of the state you mention i.e. Maharashtra. Hence you can’t break that down month wise.

Yash_Kaviya · February 9, 2022, 8:00am

Would be glad to help

ashish_shah · February 9, 2022, 10:16am

@Yash_Kaviya
so does that mean I need to pay Full Professional Tax of Rs. 2500, even though I am starting from Jun-2021 till Mar-2022?

Yash_Kaviya · February 9, 2022, 10:26am

@ashish_shah, that’s right. You’ll have to pay the full amount.

ashish_shah · February 9, 2022, 10:28am

@Yash_Kaviya
If I am not wrong, this P.T. amount will be Rs. 2500
But what will be the due date to pay PT for FY21-22 ?

Yash_Kaviya · February 9, 2022, 10:38am

Yes, @ashish_shah. For the 1st year, 30 days from the date of registration and for subsequent years on 30th June.

ashish_shah · February 25, 2022, 6:25am

@Yash_Kaviya
(1) After getting GST number, the 1st step I am doing is getting LUT for current FY. Am I proceeding in right direction?
(2) Should I go for monthly filing or Quarterly filings for FEB and MAR 2021?

vinith.r · February 25, 2022, 8:48am

@ashish_shah

(1) If you intend to supply goods or services overseas or SEZs without payment of IGST, then yes, you’re proceeding in the right direction.

(2) If your turnover is < 5cr then you can opt for Quarterly Filings and file for Jan-Mar quarter in April.
However, I personally recommend you to file your GST returns monthly because you’ll have to make payments every month anyway(if any) and it’s more convenient for accounting compliance.

@Yash_Kaviya am I correct in the first point?

ashish_shah · February 25, 2022, 1:56pm

@vinith.r @Yash_Kaviya

Also, Below are the sequence of events.

On 21-JAN-2022, I exceeded threshold limit.
On 24-JAN-2022, I submitted my application for GST
On 18-FEB-2022, I received my GST number.

So my questions are,

Would GST filing would be required only for the payments received after exceeding the threshold? or will it be applicable to the payment of 21-JAN-2022 when threshold was exceeded?.
If I opt for monthly filing, do I need to file GST for the month of JAN or do I need to file from the month of FEB?
Since I have no GST tax to pay, as I am providing Zero Rated Services (IT Export only), then would quarterly filing be a good fit for me?

Yash_Kaviya · February 28, 2022, 9:58am

Yes @vinith.r, you are right.

Yash_Kaviya · February 28, 2022, 10:02am

@ashish_shah , to answer your questions pointwise:

If the amount has increased on 21st Jaunary 2022, GST will be applicable from the 21st of January payment.
Yes, you do need to file the GST form January.
Yes, Quarterly filing shall be a good fit for you.

Let me know if you need any further help

ashish_shah · February 28, 2022, 10:05am

@Yash_Kaviya
Do I have to specify anywhere in GST portal if I want to opt for quarterly filing?

Yash_Kaviya · February 28, 2022, 10:26am

Yes @ashish_shah, you’ll get to see an option while filing.

ashish_shah · February 28, 2022, 2:03pm

@Yash_Kaviya so should I set that up right now? or like I can set that in April-2022 ?

vinith.r · February 28, 2022, 5:59pm

@ashish_shah
You have to select between Monthly/Quarterly filing option every Financial Year.