GST for Graphic Designers in India — Do You Need It?
Last updated: March 2025 · Reviewed by TaxTap CA team
If your annual turnover exceeds ₹20L, GST registration is mandatory. But here's where it gets interesting for designers — if you work with foreign clients, your services qualify as 'export of services' and are zero-rated under GST with a Letter of Undertaking (LUT). That means you charge 0% GST on foreign invoices.
Who this applies to
- Graphic designers earning above ₹20L annually
- Designers working with international clients and agencies
- Designers confused about whether foreign income needs GST
- Freelancers who want to claim Input Tax Credit on tools and software
How this works for Graphic Designers
GST registration is mandatory once your aggregate turnover crosses ₹20L in a financial year (₹10L for special category states like NE states).
If you provide services to clients outside India and receive payment in foreign currency, it qualifies as 'export of services' under GST.
File a Letter of Undertaking (LUT) in Form GST RFD-11 at the start of each financial year to make your exports zero-rated.
With LUT, you charge 0% GST on foreign invoices. Without LUT, you'd need to charge IGST and then claim a refund — messy and slow.
For domestic clients, you charge 18% GST (SAC code 998391 or 998399 for design services).
File GSTR-1 (outward supplies) and GSTR-3B (summary) monthly or quarterly depending on your turnover.
Common deductible tools for Graphic Designers
Commonly missed expenses
Real examples
Graphic Designer under ₹20L turnover
A graphic designer earning below the GST threshold with only domestic clients.
Graphic Designer with foreign clients
A graphic designer earning from export of services, registered under GST with LUT.
What should you do?
If you're under ₹20L and only have domestic clients — GST registration is optional. But voluntary registration lets you claim ITC on your tools.
If you have foreign clients, register early and file LUT immediately — even if you're under ₹20L. It keeps your invoices clean.
If you're crossing ₹20L, don't delay registration. Late registration means penalties and back-dated liability.
Track your aggregate turnover including exempt supplies — the ₹20L threshold counts everything.
Mistakes to avoid
Charging 18% GST on foreign client invoices instead of zero-rating with LUT.
Not filing LUT at the start of the financial year and missing the window.
Forgetting that the ₹20L threshold is aggregate turnover — not just taxable turnover.
Not collecting FIRC/BRC from bank to prove export of services.
Mixing personal and business bank accounts, making GST reconciliation a nightmare.
Documents you need
- GST registration certificate
- LUT filing acknowledgment (Form RFD-11)
- FIRC or e-BRC for each foreign remittance
- All invoices with correct SAC codes
- Bank statements reconciled with GSTR-1
GST giving you a headache?
Whether you need to register, file LUT, or figure out export of services — we handle it all. Talk to a real CA.