GST challenge for professionals and freelancers

Working capital requirement will rise and registration in states would be needed to take benefit

Professionals and freelancers will probably be the most impacted by the new goods and services Tax (GST). Many would need higher working capital and might need to enrol in multiple states. And, many who have online businesses are wondering whether they come under the ambit of the new tax regime.

“Those who come under GST need to file monthly returns. The bill settlement takes around 60-90 days. For service providers, it can be even longer. It means the professional or the freelancer needs to pay taxes from his pocket first and then wait for payments from his clients,” says Sachin Menon,