GST registration for Mr. A, a freelancer providing services to foreign clients (i.e., export of services) with turnover less than ₹20 lakh. 10 Lakh special Category State ✅ Scenario: * Person : Mr. A (individual/freelancer) * Service: Export of services (software, digital marketing, etc.) * Recipient: Located outside India * Payment: In foreign currency * Turnover : Less than ₹20 lakh in a financial year 🔍 Is GST Registration Mandatory? 📘 Section 22(1) – CGST Act, 2017 > Registration is **mandatory** if aggregate turnover **exceeds ₹20 lakh** in a financial year. ➡️ Mr. A is below threshold, so registration is not mandatory under this section 📘 Section 24 – Compulsory Registration > Every person making **inter-State taxable supply** shall be required to register, even if turnover is below ₹20 lakh. But here's the key clarification: ✅ Notification No. 10/2017 – Integrated Tax, dated 13.10.2017 > Exempts persons making **inter-State supplies of services** and having aggregate turnover below ₹20 lakh from registration. ➡️ Export of services is treated as inter-State supply, but this notification exempts small service providers. Aggregate Turnover is a key concept under the Goods and Services Tax (GST) law in India. ✅ Definition (Section 2(6) of the CGST Act, 2017): Aggregate Turnover means the total value of: Taxable supplies (excluding inward supplies on which tax is payable under RCM), Exempt supplies, Exports of goods or services or both, and Inter-state supplies of persons having the same PAN, computed on an all-India basis, excluding: Central tax (CGST) State tax (SGST) Union territory tax (UTGST) Integrated tax (IGST) Cess 🎯 Conclusion: ✅ GST registration is not mandatory for Mr. A if: * His aggregate turnover is less than ₹20 lakh, AND * He is not claiming GST refund (i.e., not filing LUT or refund of ITC). Situation Is GST Registration Required? Turnover < ₹20 lakh ❌ Not mandatory Wants to claim refund of input tax credit | ✅ Mandatory Wants to file LUT to export without IGST ✅ Mandatory Turnover > ₹20 lakh | ✅ Mandatory ✅ Final Answer: > Mr. A, as a freelancer exporting services with **turnover below ₹20 lakh**, is **not required to register under GST**, **unless** he wants to **claim refund of input tax credit or file LUT**. What the Courts & AAs say No major Supreme Court or High Court has directly ruled on this exact threshold vs export issue. Advance rulings and expert opinions consistently confirm that this exemption is valid and applies to export of services In Plain Language If you're exporting services and your total turnover (including exports) in a financial year is ₹20 lakh or less, you are: NOT required to obtain GST registration Allowed to remain unregistered under Notification 10/2017‑IGST. Why Some Professionals Still Advise Registration To claim input tax credit (ITC) or receive zero‑rated export refunds, you must be registered and file an LUT. To avoid scrutiny or show compliance, export‑focused professionals may choose to register voluntarily, even if not legally required GST Registration is NOT mandatory. However, voluntary registration is allowed and often beneficial, especially for: Claiming refund of Input Tax Credit (ITC) on goods/services used in exports. Complying with banking and FEMA norms (some banks/RBI cases ask for GSTIN). Issuing invoices with GSTIN adds credibility in international trade.