GST i.e. Goods and Services Tax is anticipated to come into effect in India from 1 July 2017. GST is a uniform, indirect tax throughout India to replace various taxes imposed on sale, transfer, purchase, barter, lease, and/or import of goods and services by the central and state federal governments. While there is still a lot of info to be formally revealed, some clearness on a number of laws shows that GST will likewise have a significant influence on blog writers and other affiliate online marketers in India.
Company Vakil is a major tech legal firm to provide all your GST registration needs in India.
Here s how the intro of GST will affect blog writers and the affiliate market:
Under GST, bloggers and affiliate online marketers fall under the online details and database access or retrieval services (OIDARS) i.e. those who offer electronic services like marketing on the internet, cloud services, digital information storage, digital content (motion pictures, e-books, music, shows), online video gaming, information or information retrievable in electronic kind, and so on
According to the information so far received, you require to get GST registration compulsorily, if you fulfill a list of conditions. Out of that long list, and after the most recent upgrade from the government, there are now three conditions that issue bloggers and affiliate marketers. They are:
Your turnover in a financial year goes beyond Rs 20lakhs (Rs 10 lakhs for Special classification states).
You provide online information and database access or retrieval services from a location outside India to an individual in India.
You supply online information and databases to gain access to or retrieval services from a location outside India to an individual in India, other than a registered taxable individual.
Previously, when GST had actually simply been announced, bloggers and affiliate online marketers, supplying services outside of their state, were responsible to register for GST even though they are not making Rs 20 lakhs or more each year from your blog site or affiliate site. Now they are exempted from GST registration if their profits are less than Rs 20 lakhs.
What is the GST rate for bloggers?
Blog writers fall under the 18% GST rate.
According to the 3rd point, blog writers living outside India but providing services in India to unregistered parties are accountable to get GST registration if their yearly turnover goes beyond Rs 20 lakhs. However, if you are supplying services from outdoors India to a signed up party in India then the liability of paying GST falls on the recipient of services, not you.
What if a liable individual does not register for GST or dedicates a fraud?
The recipient of service lies outside India.
For an affiliate marketer, the export income comes through PayPal or wire transfer, then you don t have to gather GST. even AdSense income falls under the export of services.
Preserve all the records of your service since the authorities can ask you for the details, anytime.
A service will be considered an export of services just if:
The provider of service (blog writer or website owner) is located in India.
You need to look for the refund through Form RFD 01 within 2 years from pertinent date and it has to be licensed by a CA.
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 thought about outside India:.
The charge for the late filing of GST is Rs 100/ day for each CGST and SGST plus interest at 18% annually. There is no charge for the late filing of IGST.
In case, somebody commits scams while filing GST, they will be charged with a penalty of 100% of the tax amount evaded/short deducted and so on or a minimum of Rs 10,000. The offender will likewise be charged with a prison term if the tax quantity averted exceeds Rs 100 lakhs.
In case, somebody averts GST registration or does not pay tax or makes short payments, they will be charged with a penalty of 10% of the tax amount due or a minimum of Rs 10,000.
The payment of service is gotten in convertible foreign exchange.
Area of address offered by the recipient of service is in India.
Credit/debit card or any other cards used for payment has been issued in India.
Billing address of recipient of service is in India.
The IP address of gadget used by the recipient of service is in India.
Bank of the recipient in which account is utilized for payment is in India.
Country code of SIM is in India.
Area of fixed land line through which service is gotten by recipient is in India.
At Company Vakil, online GST registration in India is handled by experts at every stage and it assures to provide the best possible service to a person.
Which online professions are liable for GST?
The place of supply of service is outside India.
How will blogging services delivered outside India be managed under GST?
Earnings from the export of services are exempt from GST. However, GST registration is still required just the way filing Income Tax Returns is mandatory although you wear t fall in the tax bracket. In this case, you need to furnish a bond or Letter of Undertaking specifying that it is export of services and you have to file GST returns for 0% GST.
Bloggers- Bloggers who make more than Rs 20 lakh/ year from their own blog site through ads or affiliate commission or through sponsored short articles.
Freelancers- Freelance writers, developers, designers, digital marketers who earn more than 20 lakh per year.
Associate Marketers- Website owners earning affiliate commission (more than Rs 20 lakhs/ year) through various affiliate networks or programs like Amazon, Flipkart and so on
Presently taxpayers have to file 2 GST returns: GSTR 1 and GSTR 3B.
YouTubers who are earning more than Rs 20 lakhs per year, through Indian customers.
To stay updated on advancements in the blogging and affiliate marketing world and to understand more about the impact of GST on blogging, you can bookmark this blog site and/ or join Cuelinks.
E.g. If you spend Rs 1000 on Facebook Ads and paid Rs 180 as GST to Facebook, then while submitting GST returns, your net payable GST will be minus the GST you spent for Facebook services.
Many huge businesses like Facebook are requesting for GST numbers from all freelancers. So, it is better to sign up for GST due to the fact that you will have the ability to claim the benefits of input credit on the expenses you produce running your company.
If you have any queries, doubts, or more information connecting to GST, do share them with us in the remarks section.
GST Filing and Due Date:
Send the application within 15 days of filling it. When your application is approved, you will get your GST number.
GSTR 1 is to be filed 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.
GSTR 1 is to be filed quarterly for all taxpayers whose turnover is less than Rs 1.5 crore. It is to be filed prior to the end of the prospering month. E.g. GSTR 1 for January 2018 to March 2018 is to filed by 30 April 2018.
Small companies can run their business by their name or as a proprietorship company. If you have a valid PAN card, you can register yourself with GST by yourself name. Because of the case, while registration your company name will be your own name.
Similarly, GST charged on your telephone connection, broadband connection, laptop, Air Conditioning, workplace lease and so on can be declared back while submitting returns. While buying anything for your work ask the seller to include your GST number in the expense.
The application process is rather basic; you simply need to fill in your personal information and follow the steps.
Keep soft copies of documents needed for the application ready to be uploaded. You can understand what documents 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, rented, leased, and so on) and you will get a list of files required.
Earlier, when GST had simply been revealed, blog writers and affiliate online marketers, providing services outside of their state, were liable to register for GST even though they are not making Rs 20 lakhs or more yearly from your blog or affiliate website. Income from the export of services is exempt from GST. In this case, you have to provide a bond or Letter of Undertaking stating that it is export of services and you have to file GST returns for 0% GST.
GSTR 3B is to be submitted month-to-month by all taxpayers. The GSTR 3B for February 2018 is to be submitted by 20 March 2018.
GST is a uniform, indirect tax throughout India to change various taxes levied on sale, transfer, purchase, barter, lease, and/or import of products and services by the central and state governments. Under GST, blog writers 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 marketing on the internet, cloud services, digital information storage, digital content (motion pictures, e-books, music, shows), online video gaming, data or info retrievable in electronic form, etc
In Legal Name of Business, you can enter your own name if you are running a Proprietor business. Once your application is filed, you.
Owners of an e-commerce website or online market earning through offering goods/ services.
This means whatever GST you spend for buying products and services for running your organization will be gone back to you as GST credits, which can be used to pay your GST when you submit the returns.
To be able to declare input credit, you have to provide your GST number to all these companies so that it can be tracked online.
Digital Marketers or Social Media Marketers and Agencies if their service is above 20L per year.
If you are looking for the same, Company Vakil provides the best online GST registration in India effortlessly.