Guide on GST for Freelancers
GST is applicable in India from 1st July 2017. It is also applicable to Bloggers, YouTubers, Service Providers and each one other kinds of Freelancers. The rate of GST in such cases is 18%. There is no doubt regarding this and it’s fairly clear that GST @ 18% is applicable on all Service Providers, Bloggers, YouTubers, affiliate marketers and other freelancers.
However, GST Registration will be necessary in such cases (if the whole value of services provided is sort of Rs. 20 Lakhs during the year) and Return filing & all other compliance would even be required to be followed.
Bloggers could also be a replacement profession in India a bit like the Doctors or Engineers. GST also is going to be payable by bloggers, affiliate marketers, YouTubers, and other freelancers at the rate of 18% of the whole revenue generated.
A GST of 18% has been applicable to be levied on services like marketing, blogging and more freelancing services when the services provided are within the economic boundaries of India. The tax will have to be collected from respective clients and deposited to the govt. of India.
If the supplier and thus the client are both from the same state, the classification of GST is getting to be as follows:
1. CGST @ 9%
2. SGST @ 9%
The overall tax paid is getting to be the same, i.e., 18%, but it’ll be paid to Central and government separately.
Your invoices must be clear to show your business Name, Address, Invoice Date and your GST number, your client’s GST number (if B2B service), GST amount and total amount.
Why do Bloggers or YouTubers come under GST?
YouTubers and bloggers represent the service induced liabilities under the GST Bill. A blogger comes under consideration as a supplier of services. Bloggers offer a platform to the advertisers to dispose of their advertisement.
Freelancers who are bloggers, app and web developers, content writers, etc. They have been exempted from registration under GST if their annual turnover is up to Rs 20 lakhs albeit making the interstate supply. Before this relief, GST registration was mandatory for a private who was providing services outside the state no matter their turnover.
This has an enormous impact on the small scale Bloggers and to other service providers which were mandatory to register for GST. A small- scale freelancer who was earning about 100,000 rupees once a year can’t hire a CA who will charge thousands of rupees to remain GST compliant. This burden of registration has been removed and now they have to register only their annual turnover is above Rs. 20 lakhs.
Export income remains exempted from the GST
Export income for online entrepreneurs means if you receive any income comes from a faraway registered company. In most of the cases, export income comes through PayPal from the clients.
AdSense income, Affiliate Income from Foreign registered company, Freelance income from PayPal is taken under consideration as export income.
Let’s Discuss some service provider who required to Register for GST
Freelancers: If you are a contract writer, designer, developer or digital marketer who is providing services of quite 20L annually.
Bloggers: You’ve to pay GST, if you are making online income through blogging. Because whom you provided sponsored articles, will have income from advertisements or getting a commission as an affiliate.
Affiliate Marketers: If your income comes from any affiliate marketing network based in India like Amazon or flipkart, then you’ve to pay GST.
YouTubers: Same as bloggers, Youtubers even need to register for GST if their annual income is sort of 20L.
Digital Marketers: You furthermore may have to return under GST if your business is above 20L once a year.
Perk of GST
You will get a benefit of the GST amount that you simply pay on your business expenses. GST on expenses is will be adjust in your GST returns against the GST that you simply pay on your business income.
What is the GST Registration Process for Bloggers, YouTubers?
The GST official portal is GST registration. This registration requires the business information, personal details, Details of the Business property.
If you’re unsure whether your yearly income will reach the bar of 20 lakh once a year or not, you’ll still charge GST from your clients. Just in case your income doesn’t reach Rs. 20 lakhs at the highest of the year, the GST you charge from your customers will be credit back to your clients.
Conclusion
It is highly mandatory for the bloggers, YouTubers, Affiliate Marketers to register for GST and send out their GST on time by generating GST invoices. Doing so will keep you safe from any risks like the penalty of not paying the tax.
For more details Read Simplest Guide to GST for Freelancers in India