Question 1

Why do Indian freelancers exporting services need GST and LUT?

Accepted Answer

Cross-border digital services (software development, UI/UX, remote consulting) qualify as Zero-Rated Export of Services under Section 2(6) of the IGST Act. To legally receive foreign currency without paying 18% IGST upfront, you must file a Letter of Undertaking (LUT) on the GST portal.

Question 2

How does Section 44ADA save Indian freelancers on income tax?

Accepted Answer

Section 44ADA allows technical and creative freelancers with annual revenue up to ₹75 Lakhs to declare a statutory minimum of 50% profit. The remaining 50% is treated as business expenses without maintaining expense receipts or undergoing statutory tax audits.

Question 3

How long does GST registration and LUT filing take for freelancers?

Accepted Answer

SEVACA files your GST registration and Export LUT within 24 hours. The official government Application Reference Number (ARN) is issued within 72 hours.