The Indian blogging community has been in great confusion ever since the Goods and Services Tax (GST) came into effect from July 01, 2017. Suddenly all blog ads, AdSense users and other freelancers are worried about how to properly comply with the complicated GST rules . In India, most bloggers make small income by publishing Google AdSense ads on their blogs and websites. Understandably, these bloggers fear that they will now have to part with 18% of their meager income. There have been many FAQs being asked over the past few months. "Do I need to register for GST to make a blog ?" " Do I need to pay GST for AdSense?" are among those questions.
Team TechWelkin is also credited with being an early post on the subject, but to be honest, we were also confused. Nothing is clear. Therefore, we avoid publishing unsubstantiated information. Now, it seems that many questions on GST related blogs, freelancers and AdSense have been clearly answered. Almost all CAs and bloggers have come to agree on many GST issues. So, today we give you short and concise answers to all GST related questions. Read on!
Please bloggers need to register as GST?
Yes, if you are making money from your blog, you need to register for GST and get yourself a GSTN number. But don't worry. GST registration is Latest Mailing Database a simple and easy process. Your CA can easily get you registered in minutes. CA's charging Rs. 3000 GST for registration.
Do I need to pay GST on my blog income?
Blogs make money from various sources. Earn money from some sources, you'll need to pay GST and some others you don't know. let's see:
Google AdSense: Google's revenue from making AdSense is exempt from GST. To be precise, you're going to have 0% GST on your AdSense earnings (for reasons that will be explained later in this article). This means that you have to file a GST return, but you don't need to pay any GST on it.
Google AdX Ads: If you use AdX Ads then you will have to pay 18% GST if your AdX supplier is located in India.
Affiliate Ads/Links: If the client is located outside India, you are not required to pay GST on affiliate income. However, if your subordinate clients are located within India, you have to pay 18% GST. For example, if you are a web hosting company with offices in the US to run affiliate ads, you do not have to pay GST. However, if you are running an advertisement for a web hosting company in India, then you have to pay 18% GST.
Direct Marketing Ads: These are ads from your own sources. With AdSense and affiliate advertising, you have to raise your invoice to get direct advertising. In this invoice, you need to advertise 18% consumption tax, and then pay this 18% to the government.
Editorials and Sponsored Articles: Just like direct advertising, you have to take 18% GST from your customers and then pay it to the government.
Ad networks other than Google's AdSense: the same rule applies in the case of affiliate advertising.
Why do I not need to pay GST on AdSense?
Google will come from Singapore and you pay. As a result, Google will be treated as an outlet for your overseas clients and the posting of your AdSense ads will serve as an outlet. The export of services is subject to a tax board under 0% GST.
There is another thing. Since you don't raise the invoice to Google and Google doesn't give you the 18% extra, and it does, it doesn't make sense to pay the 18% tax from our own pocket. If you can present an invoice to Google asking for your AdSense payment, then you can add 18% GST to the invoice...then, in turn, you can pay that amount to the government. Thankfully exports of services are taxed at 0% - so AdSense publishers don't need to pay GST out of their own pockets.
Why do I need to file a GST return even though I don't have to pay any tax?
We know it's annoying and illogical. But here's how. If your blog income is solely from AdSense, then you don't have to pay GST - but you still have to submit GST-free returns .
Update: The government has given some respite. The 22nd meeting of the GST Council on 6 October 2017 has decided that now, people with annual turnover below Rs 150 crore must submit quarterly GST returns instead of monthly returns.
So, if your income from your blog is less than Rs 150 crore, you need to submit GST earnings every three months. Otherwise - seriously! Do you earn more than Rs 150 crore from blogging? ! - You must submit monthly returns.