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 change various taxes levied on sale, transfer, purchase, barter, lease, and/or import of items and services by the central and state governments. While there is still a lot of details to be officially revealed, some clarity on a variety of laws shows that GST will also have a considerable effect on blog writers and other affiliate marketers in India.
Company Vakil is a major one-shot tech legal firm to offer online GST Registration in India.
Here s how the intro of GST will affect bloggers and the affiliate market:
Under GST, blog writers and affiliate marketers fall under the online information and database gain access to or retrieval services (OIDARS) i.e. those who provide electronic services like advertising on the web, cloud services, digital data storage, digital material (motion pictures, e-books, music, shows), online video gaming, data or info retrievable in electronic type, etc
According to the details so far received, you need to obtain GST registration compulsorily, if you satisfy a list of conditions. Out of that long list, and after the current update from the government, there are now three conditions which concern bloggers and affiliate online marketers. They are:
Your turnover in a financial year exceeds Rs 20lakhs (Rs 10 lakhs for Special category states).
You supply online details and databases gain access to or retrieval services from a place outside India to an individual in India.
You provide online info and database gain access to or retrieval services from a location outside India to a person in India, aside from a signed up taxable individual.
Previously, when GST had just been announced, blog writers, and affiliate marketers, providing services outside of their state, we’re accountable to register for GST even though they are not making Rs 20 lakhs or more each year from your blog site or affiliate website. Now they are excused from GST registration if their earnings are less than Rs 20 lakhs.
According to the 3rd point, bloggers living outside India however 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 outdoors India to a signed up celebration in India then the liability of paying GST falls on the recipient of services, not you.
What is the GST rate for blog writers?
Bloggers fall under the 18% GST rate.
What if a liable person does not register for GST or commits a fraud?
A service will be considered an export of services just if:
The provider of service (blog writer or site owner) lies in India.
The location of the supply of service is outside India.
Preserve all the records of your service due to the fact that the authorities can ask you for the details, anytime.
If your blog or site is serving a recipient which does not fall under any of the listed below pointed out conditions then your place of supply of services is considered outside India:
The penalty for the late filing of GST is Rs 100/ day for each CGST and SGST plus interest at 18% each year. There is no charge for the late filing of IGST.
You have to obtain the refund through Form RFD 01 within 2 years from the relevant date and it needs to be accredited by a CA.
Freelancers- Freelance writers, designers, designers, digital marketers who earn more than 20 lakh each year.
How will blogging services provided outside India be dealt with under GST?
Income from the export of services is exempt from GST. GST registration is still required simply the method filing Income Tax Returns is required even though you don 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 need to submit GST returns for 0% GST.
The recipient of the service is situated outside India.
In case, somebody averts GST registration or does not pay tax or makes brief payments, they will be charged with a charge of 10% of the tax quantity due or a minimum of Rs 10,000.
Blog writers- Bloggers who make more than Rs 20 lakh/ year from their own blog through ads or affiliate commission or through sponsored articles.
In case, someone dedicates fraud while filing GST, they will be charged with a penalty of 100% of the tax quantity evaded/short subtracted, etc. or a minimum of Rs 10,000. The wrongdoer will likewise be charged with a jail term if the tax amount evaded exceeds Rs 100 lakhs.
The location of the address provided by the recipient of service remains in India.
Credit/debit card or any other cards utilized for payment has been released in India.
The billing address of the recipient of service remains in India.
The IP address of the gadget used by the recipient of service is in India.
Bank of the recipient in which account is utilized for payment is in India.
Nation code of SIM remains in India.
Area of the set land line through which service is gotten by recipient remains in India.
Which online professions are responsible for GST?
For an affiliate online marketer, the export income comes through PayPal or wire transfer, then you wear t have to collect GST. even AdSense earnings fall under export of services.
The payment of service is gotten in convertible forex.
Associate Marketers- Website owners earning affiliate commission (more than Rs 20 lakhs/ year) through numerous affiliate networks or programs like Amazon, Flipkart, and so on the application procedure is quite simple; you just have to fill out your personal information and follow the steps.
However, to be able to claim input credit, you need to offer your GST number to all these companies so that it can be tracked online.
GST is a uniform, indirect tax throughout India to replace numerous taxes imposed on sale, transfer, purchase, barter, lease, and/or import of items and services by the main and state federal governments. Under GST, blog writers 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 marketing on the internet, cloud services, digital data storage, digital material (movies, e-books, music, programs), online video gaming, information or details retrievable in electronic kind, and so on
Presently taxpayers need to submit 2 GST returns GSTR 1 and GSTR 3B.
This means whatever GST you pay for purchasing goods and services for running your service will be gone back to you as GST credits, which can be utilized to pay your GST when you submit the returns.
If you have any questions, doubts, or more info connecting to GST, do share them with us in the comments section.
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 completion of the prospering month. E.g. GSTR 1 for January 2018 to March 2018 is to filed by 30 April 2018.
Submit the application within 15 days of filling it. When your application is approved, you will get your GST number.
GST charged on your telephone connection, broadband connection, laptop computer, Air Conditioner, workplace lease, etc. can be claimed back while submitting returns. So, while buying anything for your work ask the seller to include your GST number at the expense.
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 paid for Facebook services.
YouTubers who are earning more than Rs 20 lakhs annually, through Indian clients.
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 submitted by 10 March 2018.
Owners of an e-commerce website or online marketplaces making through selling items/ services.
GSTR 3B is to be submitted monthly by all taxpayers. The GSTR 3B for February 2018 is to be submitted by 20 March 2018.
Digital Marketers or Social Media Marketers and Agencies if their business is above 20L per year.
GST Filing and Due Date:
Keep soft copies of documents needed for the application ready to be uploaded. You can know what files you need here. Just get in Constitution of Business (i.e. owner, partnership, and so on) and Nature of Possession of Premises (i.e. own, rented, leased, etc.) and you will get a list of files needed.
Small companies can run their business by their name or as a proprietorship firm. If you have a legitimate PAN card, you can register yourself with GST on your own name. In that case, while registration your service name will be your own name.
Numerous big companies like Facebook are requesting GST numbers from all freelancers. It is better to register for GST since you will be able to claim the benefits of input credit on the expenses you make for running your organization.
Earlier, when GST had actually just been revealed, blog writers and affiliate marketers, supplying services outside of their state, were liable to sign up for GST even though they are not earning Rs 20 lakhs or more each year from your blog or affiliate website. Earnings from the export of services are exempt from GST. In this case, you have to provide a bond or Letter of Undertaking mentioning that it is export of services and you have to file GST returns for 0% GST.
In Legal Name of Business, you can enter your own name if you are running a Proprietor company. Once your application is filed, you.
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