GST law which has been implemented on 1st July requires everyone who is involved in importing business to get engaged in the act. This law is about to hit the freelancers as well. However, the software professionals who are engaged in exporting business are about to see some significant changes in the taxation.
According to GST law, anyone involved in exporting goods outside the country would have to register for the GST. As per the law, if a person is getting even one rupee income from outside the state, they would have to get registered under the law. The professionals who are into the exporting business would have to register under GST and also would have to go through three tax file returns. Before the implementation of this tax, no such requirement existed.
The entire industry has expressed their concern over the matter. They have a fear that the step would lead to a severe restriction in exporting goods. Serious is a serious opposition between the intention of the taxation and the promise that the government has made.
This move that the government has done would make the matter difficult for the freelancers. The overhead work would increase, and the administrative work would get complicated as well. Complying with such norms would be difficult with limited income stated a freelancer who did not willingly reveal the name.
The similar sentiment has been expressed by the managing director of Altruist Technologies (P) Ltd. He said that many freelancers in the country are exporting goods outside the country. This move is sure to increase the overhead expenses. The freelancers will have to hire accountants to tab of the tax and the various requirements. Some cut off limit for the GST registration is required.
There is no lowest cutoff limit for the taxation, even someone who is working as a freelancer would have to comply and register under GST as well.