You win a $500 project on Upwork. A week later the payout shows $450, and in your tax settings the platform is asking for a GSTIN. Another freelancer in your group says Fiverr charges Indian GST, a third says you must register just because you use a foreign platform. Three answers, none with a source, and a very real chance of invoicing wrongly.
There are two separate questions. Your sale to the foreign client is generally an export of services, which can be zero-rated under GST. The platform's fees to you are a different matter, and what happens depends on the platform and on whether you have a GSTIN. Here is what Upwork and Fiverr say on their help pages, and what to ask your CA. Platform rules change, so check your account's tax page before you act.
Your sale to a foreign client is generally an export of services
A supply of services counts as an export under Section 2(6) of the IGST Act when you are in India, the client is outside India, the place of supply is outside India, you are paid in convertible foreign exchange (or in rupees where RBI permits), and you and the client are not merely establishments of the same person. If all five hold, the supply is zero-rated, and registered freelancers usually supply under a Letter of Undertaking without paying IGST. The guide on LUT and GST for freelance export services covers the filing, and the one on the place of supply for a foreign client covers the location test.
The common treatment for marketplace work is that the foreign client is the recipient of your service, so the place of supply is outside India. Marketplaces can be structured differently from a direct contract, so confirm the treatment of your own account with a CA. The full invoice picture is in the guide to GST invoices for freelancers.
Upwork says it charges 18 percent GST on its fees unless you give a GSTIN
Upwork's India GST help page says 18 percent GST applies to membership fees, Connects purchases and freelancer service fees, and that the tax is 18 percent of the fee, not of your contract amount. On a $100 service fee that is $18 of tax. If you provide a valid GSTIN in your tax information, Upwork says it does not collect the tax.
That last point is where freelancers get confused. The help page does not say how a registered freelancer should account for the fee. If you are GST-registered and have given Upwork your GSTIN, ask your CA how to report the fee in your GSTR-3B and whether you can claim credit on it. If you are not registered, you pay the 18 percent Upwork collects, and the fee becomes a business cost.
Fiverr lists a 0.5 percent GST or TCS and a 194-O deduction for Indian sellers
Fiverr's India sellers tax page lists a 0.5 percent GST or TCS on the total transaction price, an income-tax deduction under Section 194-O of 0.1 percent to 5 percent, and 18 percent GST on Promoted Gigs, which is its advertising product. The 194-O amount is tax deducted at source, so it should show up in your Form 26AS and AIS once the platform deposits it, and you claim it as credit when you file, as the guide on a TDS credit that does not match 26AS explains.
The page does not say whether Fiverr adds Indian GST to its own seller commission. Read the invoices and statements Fiverr issues to you and compare them with what the help page lists.
Registration is not triggered just because you use a foreign platform
Some posts claim that paying a platform fee forces you to register for GST regardless of turnover. That is not what the GST law says, and a freelancer with no GSTIN pays the tax the platform collects. Whether you must register depends on your turnover, and the threshold for services is ₹20 lakh, as the guide on when a freelancer must register for GST explains.
Export income counts toward aggregate turnover for the threshold, so a freelancer earning mostly from abroad can cross it sooner than expected. Decide with a CA before you register, not because a platform asked.
Invoice the contract price, and treat platform fees as your cost
Your invoice to the client reflects the price you agreed with them. Platform commission, payment fees and any tax the platform collects from you are your costs, not reductions in what you billed. Whether the commission reduces the value of the export for GST purposes is not settled, so ask your CA before you net it off. Keep the platform's earnings statements as supporting documents, and see the guide on invoicing international clients from India for the invoice fields.
Form 15CA and 15CB are filed by someone sending money out of India, so they do not arise for a freelancer receiving a platform payout. Proof of foreign receipt is a separate topic, covered in the guide on FIRC versus FIRA.
Rinto keeps your own invoices GST-ready whichever way platform fees are treated
Rinto creates GST-ready invoices with automatic IGST, CGST and SGST calculation, so your own invoices stay consistent whichever way your CA treats the platform's fees. It does not file your GST returns or decide how platform fees are reported, which you do on the GST portal or through your CA. This post is general information, not tax advice.
For how Section 52 TCS works, who collects it and where the credit lands, read the guide to GST TCS on Fiverr and platforms.
Frequently Asked Questions
Does Upwork charge GST to Indian freelancers?
According to Upwork's India GST help page, 18 percent GST applies to membership fees, Connects purchases and freelancer service fees, calculated on the fee and not on your contract amount. If you add a valid GSTIN to your tax information, Upwork says it does not collect the tax. Help pages change, so check your own account's tax page, and ask your CA how to report the fee in your GSTR-3B if you are GST-registered. If you are not registered, the 18 percent you pay is a business cost to record with your other expenses.
Is Fiverr income from India an export under GST?
Services you supply to a client outside India can be an export of services if the client and place of supply are outside India, you are paid in foreign exchange, and the other conditions in Section 2(6) of the IGST Act are met. Registered freelancers usually supply under an LUT without paying IGST. Fiverr's own deductions, listed on its India sellers tax page, are separate and do not change that treatment, but confirm how your account is structured with a CA before you file.
What is the 194-O deduction on Fiverr payouts?
Fiverr's India sellers tax page lists a deduction under Section 194-O, at 0.1 percent to 5 percent, along with a 0.5 percent GST or TCS on the transaction price. The 194-O amount is tax deducted at source on your earnings, so it appears in Form 26AS and AIS, and you claim it as credit when you file your return. Check your earnings statements and 26AS each quarter to confirm the deductions match, and keep the statements as supporting records. Fiverr's page also says sellers must complete their tax information within 30 days of its first notice or gigs may be frozen.
Do I need a GSTIN to use Upwork or Fiverr?
No. A freelancer with no GSTIN can use both platforms, and Upwork says it collects 18 percent GST on its fees in that case. Whether you must register for GST depends on your turnover, with a threshold of ₹20 lakh for services, and export income counts toward it. Do not register only because a platform asks for a GSTIN. If you are close to the threshold or want to supply under an LUT, talk to a CA first. Keep your turnover running total, because the threshold counts all your supplies, not just those on one platform.
Do I report the platform commission as part of my invoice value?
Invoice your client the price you agreed with them. The platform commission and any tax the platform collects from you are your costs. Whether the commission reduces the value of the export for GST purposes is not settled, so ask your CA before you net it off in your returns. Keep the platform's earnings statements and your invoices together, because they let you reconcile what the client paid with what reached your bank account. If you are unsure, keep a note of how you treated it each year so that you stay consistent.