GST on Service Providers, Bloggers, Youtubers & Freelancers
GST has been launched from 1st July 2017 and there are lots of discussions going on whether GST applies to Bloggers, Youtubers, Freelancers and Affiliate Marketers. This confusion is keeping every freelancer and chartered accountants in a dilemma.
As per Section 7 of CGST Act, 2017, each supply whether products or administrations or both (except few) are dealt with as supply under GST. That implies, bloggers or GST on Service Providers secured under GST administration as in light of the fact that they give/supply administrations. Be that as it may, whether a blogger is taxable under GST Act 2017 or not should rely upon different factors which are talked about below in this article in detailed and well ordered method.
GST Act for Freelancer/Blogger/Youtubers in India:
GST is permissible on Goods and also in Services. Bloggers give benefits on internet i.e. they give online services through their web journals (blogs) and henceforth they need to check whether they secured under the arrangements of GST Act or not.
According to Section 2(17) of IGST Act, 2017, Online Information and Database Access or Retrieval Services (OIDARS) implies administrations whose transportation is interceded by data innovation over the internet or an electronic network and the idea of which renders their supply basically mechanized and including negligible human mediation and difficult to guarantee without information technology and incorporates electronic services, for example,
- Providing cloud services.
- Advertising on the internet
- Online supplies of the digital content such as movies, music, television shows and so on.
- Providing information retrievable or no to any individual in electronic form through computer network.
- Providing movies, e-book, softwares or any other intangibles through telecommunication network or internet.
- Online gaming.
- Digital data storage.
As a blogger you are secured under the above arrangement of GST Act 2017 as provider of Online Information and Database Access or Retrieval Services.
Place of Supply:
Under Section 13 of IGST Act 2017 might apply to decide the place of supply of services where the area of the provider (Blogger) of administrations or the area of the beneficiary (Google AdSense) of service is outside India. As the area of Google AdSense is outside India, the place of administration might be chosen as per Section 13 of IGST Act, 2017.
Under the accordance with the provision of Section 13(12) of IGST Act 2017, the place of supply of online information and database access or recovery services should be the area of the beneficiary of administrations. That implies, bloggers secured under this arrangement and the place of supply of administration is the place of Google AdSense/YouTube.
Is it Export of service or not:
Now, the provision of Section 2(6) of IGST Act 2017 explains Export of Services which means the supply of any services when,
- The recipient of service is not located in India
- The supplier of services is locate in India
- The location of supply is outside India
- the payment for such services has been gotten by the provider of services in convertible foreign exchange; and
- the provider of supplier and the beneficiary of services are not simply foundations of an unmistakable individual;
Hence, bloggers are sending out services as provider (You) situated in India, beneficiary (Google) is situated in outside India and place of supply is likewise outside India as examined above and payment received in dollar ($) i.e. in convertible foreign exchange and you and Google are not simply foundations of an unmistakable individual.
Requirement of Registration:
From joined reading of Section 22 and 23 of CGST Act, 2017, bloggers as an individual engaged in solely in the matter of providing services that are not obligated to impose or completely excluded from taxes under the CGST Act 2017 or under the IGST Act 2017. As such, bloggers who just earn online money from Google AdSense/YouTube are suppling services which are completely exempted from GST tax.
Currently, on the off chance that you read the arrangement of Section 2(47) of CGST Act 2017, you should comprehend the fact that Exempt Supply implies supply of any services which attracts in nil rate of tax i.e. 0% (Zero Rates) and along these lines a blogger particularly secured under the arrangement of segment 23 of CGST Act 2017 and not obligated for registration.
In the event that you have blog or site and the sole source of income is from Google AdSense, at that point there is no compelling reason to either apply for GST registration or pay GST charge. At the end of the day, on the off chance that you are blogging from India and receive payments from Google AdSense, you are not required to enlist yourself under GST Act 2017.