GST i.e. Goods and Services Tax is expected to come into result in India from 1 July 2017. GST is a uniform, indirect tax throughout India to change various taxes levied on sale, transfer, purchase, barter, lease, and/or import of items and services by the main and state governments. While there is still a lot of info to be formally announced, some clarity on a variety of laws suggests that GST will likewise have a substantial effect on bloggers and other affiliate marketers in India.
Here s how the introduction of GST will impact bloggers and the affiliate market:
Under GST, bloggers and affiliate marketers fall under the online information and database gain access to or retrieval services (OIDARS) i.e. those who offer electronic services like advertising on web, cloud services, digital information storage, digital material (films, e-books, music, programs), online gaming, data or details retrievable in electronic type, and so on
According to the 3rd point, blog writers living outside India but supplying services in India to unregistered celebrations are accountable to get GST registration if their yearly turnover goes beyond Rs 20 lakhs. If you are supplying services from outside India to a signed up celebration in India then the liability of paying GST falls on the recipient of services, not you.
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According to the details so far gotten, you need to acquire GST registration compulsorily, if you fulfill a list of conditions.
Your turnover in a fiscal year goes beyond Rs 20lakhs (Rs 10 lakhs for Special category states).
You provide online details and database access or retrieval services from a location outside India to a person in India.
You provide online information and database access or retrieval services from a place outside India to an individual in India, besides a signed up taxable person.
Previously, when GST had simply been announced, bloggers and affiliate marketers, providing services outside of their state, were responsible to register for GST even though they are not earning Rs 20 lakhs or more yearly from your blog site or affiliate website. Now they are excused from GST registration if their revenues are less than Rs 20 lakhs.
What is the GST rate for bloggers?
Bloggers fall under the 18% GST rate.
What if a liable individual does not sign up for GST or commits a fraud?
How will blogging services delivered outside India be handled under GST?
Earnings from the export of services are exempt from GST. However, GST registration is still mandatory simply the way filing Income Tax Returns is obligatory despite the fact that you don t fall in the tax bracket. In this case, you need to provide a bond or Letter of Undertaking mentioning that it is export of services and you need to file GST returns for 0% GST.
Blog writers- Bloggers who make more than Rs 20 lakh/ year from their own blog through advertisements or affiliate commission or through sponsored short articles.
The recipient of the service is located outside India.
For an affiliate marketer, the export income comes through PayPal or wire transfer, then you put on t need to collect GST. even AdSense income falls under the export of services.
Preserve all the records of your business since the authorities can ask you for the details, anytime.
The payment of service is received in convertible forex.
In case, someone evades GST registration or does not pay tax or makes short payments, they will be charged with a charge of 10% of the tax amount due or a minimum of Rs 10,000.
If your blog site or website is serving to a recipient which does not fall under any of the listed below mentioned conditions then your location of supply of services is considered outside India:.
The place of supply of service is outside India.
Freelancers- Freelance writers, developers, designers, digital online marketers who earn more than 20 lakh annually.
The charge for late filing of GST is Rs 100/ day for each CGST and SGST plus interest at 18% per year. There is no charge for the late filing of IGST.
A service will be thought about the export of services only if:
The provider of service (blogger or site owner) is situated in India.
You have to get the refund through Form RFD 01 within 2 years from pertinent date and it needs to be licensed by a CA.
In case, someone dedicates fraud while submitting GST, they will be charged with a charge of 100% of the tax quantity evaded/short deducted and so on or a minimum of Rs 10,000. The wrongdoer will also be charged with a prison term if the tax amount averted goes beyond Rs 100 lakhs.
The place of an address given by the recipient of service remains in India.
Credit/debit card or any other cards utilized for payment has actually been released in India.
The billing address of the recipient of service remains in India.
The IP address of the device utilized by the recipient of service remains in India.
Bank of the recipient in which account is used for payment is in India.
Nation code of SIM is in India.
Place of the fixed landline through which service is received by the recipient is in India.
Which online professions are responsible for GST?
Affiliate Marketers- Website owners earning affiliate commission (more than Rs 20 lakhs/ year) through different affiliate networks or programs like Amazon, Flipkart and so on
Much big business like Facebook is requesting for GST numbers from all freelancers. So, it is much better to sign up for GST because you will have the ability to declare the advantages of input credit on the expenses you produce running your company.
If you have any inquiries, doubts, or more details relating to GST, do share them with us in the comments section.
GSTR 3B is to be filed month-to-month by all taxpayers. The due date for it is the 20th of the succeeding month. E.g. The GSTR 3B for February 2018 is to be submitted by 20 March 2018.
YouTubers who are earning more than Rs 20 lakhs annually, through Indian customers.
In Legal Name of Business, you can enter your own name if you are running a Proprietor service. When your application is filled, you.
Earlier, when GST had just been announced, blog writers, and affiliate marketers, supplying services outside of their state, we’re accountable to register for GST even though they are not earning Rs 20 lakhs or more each year from your blog or affiliate site. Income from the export of services is exempt from GST. In this case, you have to furnish a bond or Letter of Undertaking mentioning that it is export of services and you have to submit GST returns for 0% GST.
GSTR 1 is to be submitted quarterly for all taxpayers whose turnover is less than Rs 1.5 crore. It is to be filed before completion of the prospering month. E.g. GSTR 1 for January 2018 to March 2018 is to filed by 30 April 2018.
GST Filing and Due Date:
Digital Marketers or Social Media Marketers and Agencies if their business is above 20L each year.
Send the application within 15 days of filling it. When your application is authorized, you will get your GST number.
The application procedure is quite basic; you simply need to fill in your individual information and follow the actions.
Currently, taxpayers have to file two GST returns GSTR 1 and GSTR 3B.
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This means whatever GST you pay for purchasing items and services for running your business will be returned to you as GST credits, which can be used to pay your GST when you submit the returns.
To be able to claim input credit, you have to offer your GST number to all these businesses so that it can be tracked online.
Small services can run their company by their name or as a proprietorship company. If you have a valid PAN card, you can register yourself with GST on your own name. In that case, while registration your organization name will be your own name.
Keep soft copies of files needed for the application ready to be uploaded. You can know what files you require here. Just go into Constitution of Business (i.e. proprietor, collaboration, and so on) and Nature of Possession of Premises (i.e. own, leased, rented, and so on) and you will get a list of files required.
E.g. If you spend Rs 1000 on Facebook Ads and paid Rs 180 as GST to Facebook, then while filing GST returns, your net payable GST will be minus the GST you paid for Facebook services.
You can register for GST at https://reg.gst.gov.in/registration. Owners of e-commerce site or online marketplaces making through offering products/ services.
Likewise, GST charged on your telephone connection, broadband connection, laptop, Air Conditioning, workplace rent etc. can be claimed back while submitting returns. So, while buying anything for your work ask the seller to include your GST number in the bill.
GST is a uniform, indirect tax throughout India to replace various taxes levied on sale, transfer, purchase, barter, lease, and/or import of products and services by the central and state federal governments. Under GST, bloggers and affiliate online marketers fall under the online info and database gain access to or retrieval services (OIDARS) i.e. those who supply electronic services like advertising on the internet, cloud services, digital information storage, digital material (motion pictures, e-books, music, shows), online video gaming, information or details retrievable in electronic kind, and so on
GSTR 1 is to be submitted regular monthly for all taxpayers, whose turnover is more than Rs 1.5 crore. The GSTR 1 for February 2018 is to be filed by 10 March 2018.
To remain up-to-date on developments in the blogging and affiliate marketing world and to understand more about the impact of GST on blogging, you can bookmark this blog and/ or join Cuelinks.
If you are looking for the same, Company Vakil provides effortless and error-free online GST Registration in India at the most affordable prices in the market.