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Finance January 24, 2026

"India: Mastering GST & TDS for Solopreneurs"

"CGST, SGST, IGST, and TDS. Decoding the acronyms that Indian freelancers deal with every day."

The Indian Freelancer's Guide to GST

India's Goods and Services Tax (GST) is a unified tax system, but it comes with rigorous compliance requirements for freelancers, especially regarding location of supply (State vs. Central).

The Complexity: Location Matters

  • Intra-State (Same State): You charge CGST (Central) + SGST (State). Usually 9% + 9% = 18%.
  • Inter-State (Different State): You charge IGST (Integrated). Flat 18%.
  • Export (Foreign Client): Usually Zero-rated with LUT (Letter of Undertaking).
  • The Hidden Cost: TDS (Tax Deducted at Source)

    Often, clients will deduct 10% (under Section 194J) from your payment before transfer. If you invoice ₹1,00,000, you only receive ₹90,000. You need to track that missing ₹10,000 to claim it back later.

    How SparkyMinis is Built for India 🇮🇳

    1. Dedicated TDS Tracking

    We are one of the few tools with a native "TDS" field.
  • On Invoicing: When creating an invoice, enter the `TDS %` (e.g., 10%). The system calculates "Net Receivable" so you know exactly what hits your bank.
  • On Expenses: Paid ₹50,000 to a contractor? The Expense form lets you record the TDS you deducted, so you remember to deposit it.
  • 2. Smart GST Chips

  • Go to: `Dashboard > Settings > Tax & Compliance`.
  • Create two chips: `IGST 18%` and `CGST+SGST 18%`.
  • Name them clearly. When billing a Bangalore client from Mumbai, just pick `IGST`.
  • 3. LUT Support for Exports

    If you bill US/EU clients:
  • Create a `Zero-Rated (Export)` tax chip at 0%.
  • Your invoices explicitly show 0% tax, keeping you compliant.
  • Optimize SparkyMinis for India →
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    SparkyMinis Team Editor
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