What is your annual turnover?
If it is below 20 lacs, you are out of GST ambit.
main ek youtuber hu, basically hum adsense ke through youtube videos se earning karte hain, humare videos me kya ad ayega yeh google adsense control karta hain, Google adsense adevertiser se paise lete hair aur uska gst bhi government ko submit karta hain aur humse 55% revenue share karta hain. currency dollar me Singapore se aate hain. kisi bhi client ko hum nahi pahechante, hume koi bhi invoice generate nahi karna padta. aise me GST ko lekar main bahut hi confuse hu, abhi tak humne koi gst registration nahi kiya aur koi bhi gst amount submit nahi kiya.. hume kya karna chahiyen ?
What is your annual turnover?
If it is below 20 lacs, you are out of GST ambit.
Agar apka turnover 20 lacs se kum h, to apko GST registration lene ki zarurat nahi h. Apko FIRC copy bank se leni hogi har Transaction k lie.
Dear Expert, humara total annual revenue 20 lakh se jyada hain. par yeh jo earning google adsense ke through hum kar rahe hai, iska GST google government ko pahle se submit kar raha hain(advertiser se paise lete waqt), aur hum to sirf content create karke google ke platform pe publish karte hain, kisi bhi advertiser se hum direct deal nahi karte hain, koi bhi invoice generate nahi karte, to phir kis basis par hume kyun aur kitna % GST dena padega ??
Aap ko google ko service provide Kar the h isliye aapko Google ko GST charge karna padega @18% jiska aapka refund le skte h.
Otherwise, aap LUT k lie apply karde to aapko GST charge nhi krna padega.
Google Jo pay kar raha h wo apni services pe h.. apki services alag h. Aap Google ko services de rahe hain.
GST shall be applicable. But it would be a zero rated supply. You have to register under GST and then-
1. Export with payment of GST and claim back the refund.
2. File Letter of Undertaking and then export without payment of GST.
dear expert, hum "google adsense" ko GST charge nahi kar sakte, acctually yeh koi bhi youtuber nahi kar sakte. hume "Google asia pacific, Singapore" se payment milta hain dollar curency me. If Google is based in India and is registered should it then pay GST on reverse charge basis. After all Google is neither a supplier nor a receiver of service of advertisements. While payments are made by google, it acts as clearing house . Here the youtuber only interacts with google adsense. It does not know which advertisements were placed on his/her youtube channel. Who should pay for those advertisements. Whether those companies are registered under GST. And to whom should the blogger raise an invoice. Payments are made by google adsense to youtuber based on traffic and clicks. Youtuber does not raise any invoice, even though it acts as a supplier. Meanwhile google charges companies for advertisements they place. So there is no direct relation between the supplier and the receiver here.
You can apply for LUT and export your services without payment of IGST.
Your queries are adequately addressed by other experts.
As I'm not familiar with Hindi, I'm unable to understand the intricacies involved in the issues raised by you.
Just summarizing what is the exact nature of transaction is. Correct me if i am wrong.
There are three parties involved.
1 Advertiser (unkown to you)
2. Google asia pacific
Google receives contract from advertiser and get the work done from you.
Google invoice's the advertiser with whole contract amount and get the GST paid on the entire amount by the google itself. Out of the total bill amount, 55% belongs to your services which is your revenue and already GST paid.
Yes, you're correct. You can't charge GST to Google as it is export of service which is zero rated supply. You will have no tax liability I.e. either you'll get refund of tax paid or you will not pay tax at all.
Dear expert, Vivek Kumar Jee & all others u r absolutely right, main exact situation with an example step by step niche describe kar raha hu... 1. at first, "Google Adwords"(jo "Google india Pvt. Ltd" naam se india me registered hai) ek advertiser se ek ad ke liye 5000 Rs liya, aur iska 18% Integrated GST yani 900 Rs advertiser se charge karke govt ko submit kiya. 2. Then "Youtube India" (google ki dusri company) ke free platform par humara jo videos chal raha hai, un saare videos me partnership programme ke jariye Ads ko input kiya, then views ke base par advertiser se liye gaye revenue kaa 55% humse share kiya, aur revenue kaa report youtube india month ki end hone par "Google Adsense"(jo "Google Asia Pacific Pvt Ltd" naam se Singapore me registered hain) ke paas bhej diya. 3. Then "Google Adsense"(jo "Google Asia Pacific Pvt Ltd" naam se Singapore me registered hain) month ki end me humare bank account me dollar currency me bhej deta hai. to ab sawal yeh hain ki, yeh jo 3 process upar maine describe kiya yeh ek hi programmes ke antargat hain, payment advertisers se aate hain, jiska GST sabse pahle google india dwara jama kiya jaa raha hain, youtube creators ke bina is ad ko dikhaya nahi jaa sakta, aur youtube google ka khudka apna ek free platform hain, jaha par koi bhi apna videos daal sakta hain, to is sthiti me do alag service kaise ho sakta hain(ek advertiser ke saath google kaa aur ek youtuber ke saath google ka) ?? Kya ek youtuber kaa annual revenue 20 lakh se jyada hai to woh kya really GST pay karne ke liye Liable hain ?? "google adwords" advertiser se liye gaye whole contract amount ka GST paid karta hai, aur whole contract amount kaa 55% hume pay karta hai, kya is 55% kaa GST alag se pay karna padega ek youtuber ko, google to whole contract amount kaa GST pehle se hi pay kar raha hain. is situation par gaur kijiye, "google adwords" advertiser se liye gaye whole contract amount ka GST paid karta hai, naa ki whole contract kaa sirf 45% amount (jo woh khud rakh raha hain) kaa GST pay karta hain..
I understand that whole working of such transactions and have been dealing with such issues.
Please understand that, as per GST the 2 services provided by Google and provided by you are different. Let us examine the word 'Supply' as defined under Section 7 of CGST Act, 2017 which is reproduced as follows;
(1) For the purposes of this Act, the expression 'supply' includes -
(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made ( PLEASE NOTE - )for a consideration by a person in the course or furtherance of business;
(b) import of services for a consideration whether or not in the course or furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be made without a consideration; and
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
In view of the above definition of 'Supply', the term 'supply' is defined in an inclusive manner which includes all kinds of supply of goods or services undertaken for a consideration by a person in the course or furtherance of business.
Therefore, any activity undertaken for consideration in the course or furtherance of business would become supply. In this context, let us understand that whether the website publishers or content owners are carrying out any activity in order to conclude that there is a supply of service by them to Google. Google will place ads only on those websites or on the content shared by content owners who have opened AdSense account by satisfying the conditions and accepting the pre-determined terms of Google. Thus by creating AdSense account, the website publishers or content owners gives right or permission to Google to monetize their websites/content by placing ads. This by itself constitutes a supply of service in the course or furtherance of business without which Google's activity of placing ads in others websites or content may not be lawful.
But since ye export of service h and zero rated sales h, apko GST pay nahi karna. Aap Letter of Undertaking le sakte h. You will have to maintain FIRC copies of all foreign inward remittances from Google.
BUT GST REGISTRATION AND RETURN FILINGS ARE MANDATORY FOR YOU.
Given the situation above and your excellently explained example, it is clear that the revenues generated by you shall be treated as "Export of Services" within the meaning of Section 2(6) of IGST Act, 2017 because you satisfy all the conditions mentioned therein, which are as below:
1) Supplier of Service is located in India (you)
2) Recipient of Service is located outside India (Google Singapore)
3) Place of supply of service is outside India (Singapore, through youtube)
4) Payment is received in convertible foreign exchange (Dollars)
5) Supplier (you) and Recipient (Google) are two distinct entities
Hence, upon satisfaction of all the conditions above, the revenues generated by you shall be treated as revenues from export of services, which are "Zero Rated Supply" under Section 16 of IGST Act, 2017. As such, you are not at all liable to pay GST on any of your revenues.
However, since revenues earned by you are above the minimum threshold limit for registration under GST, you have to get registered under GST Laws and regularly file your GST Returns under "Zero Rated Supply" category.
This is just compliance part and you will not have to pay any GST on your revenues since the same are zero rated.
Further, after you get registered under GST, it is advisable to raise formal invoices towards Google Singapore and transmit the same through electronic means to the recipient of services. These invoices help you to follow compliance under GST Laws.
Also, please note that under GST regime, there is no scope of non-compliance.
I hope your query is answered.
CA. Sunny Thakral
I need clarification whether in what capacity you work for google, whether you work as partner or as employee of google or service provider of google, what kind of agreement is between you and google India, unless this clarified implication of gst can not be explained.
Who enter in agreement of advertisement with advertiser you or google India?
If google adwords is a foreign company, and you are providing services to foreign company and receiving revenue in foreign currency. then you can show it as Export of Service. As in case of Online Information or database service, the place of supply would be location of the recipient of the service, which is Singapore in your case (from whom you are getting the payment).
In that case you have to get GST registration but need not to pay GST as you can show the revenue as Zero rate Supplies.
Dear expert, Lakshita Bhandari Jee & all others ab situation thodi clear hui, par confusion hone ke karan humne abhi tak GST Registration nahi liya, par July 2017 se ab tak kaa mera total revenue 30 lakhs above hai. Is halat me abhi hum export category me GST registration kaise le sakte hai, aur liya bhi to hume to LUT/LOU nahi milega, kyunki LUT to pahle din se lena mandatory hai, aur agar LUT nahi milega to hum GST pay kiye bina service kaa export kaise karenge, Is situation me kya solution hai ? Hume kya karna chahiye ?
You are using You tube free platform provided by google and before uploading videos on you tube, you were aware of the terms and conditions including payout ratio if your videos will be used for advertisement. Therefore you can not take the plea that you were not aware of any pay out ratio and payment terms and conditions.
Further, the challenge here is to determine to whom you provided the services i.e. Google India Pvt. Ltd. or Google asia pacific, singapore because original contract is between advertiser and google India Pvt. Ltd. but you received the foreign consideration in USD from Google asia pacific,singapore.
If the services are provided to Google asia pacific then it will be treated as export of services and there is no liability to pay GST but you are liable to for registration under GST.
If the services are provided to Google India Pvt. Ltd then it is normal supply of services and your are liable to pay GST even though Google India had already paid tax.
You can apply for LUT anytime during the Financial year and it will be valid for that particular F.Y., means you need to apply for LUT for each F.Y. separately. From next F.Y., try to apply in the month of April 2018.
When you crossed the threshold limit of Rs.20 lacs?
Although there has been default for the earlier months, but in that regard as can only wait for the notice from the department for levy of penalties.
Best to be done is to take GST registration as soon as possible. You can take LuT now also.
If the amount is received in USD from foreign party then GST is not applicable.
Since your total turnover is Rs. 30 Lakhs, which is more than the minimum threshold under GST, you have to get registration under GST and apply for LUT u/s 16(3)(a).
Till the time you don't get LUT, you have to pay GST on supply of export of services and claim the refund of the same along with Input Tax Credit, if any, u/s 16(3)(b).
Please also note that there are huge number of exporters in India who are facing the same issue and are struggling for LUT/ GST Compliances/ Refund issues, etc. So advise you to be patient and wait till the time Govt. comes out with a clear policy on the same.
I hope your query is clearly answered.
CA. Sunny Thakral
We cannot charge tax from Google. Google is providing service to company through advertisement and paying commission to us. Only Google is liable to pay tax.
LUT can be taken at anytime. It's not necessary to take at the start. You should immediately register under GST and apply for the LUT.
However, you will have to live the risk on your past Transactions.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
CA CS B.Com
I assume that your query has been resolved by now by other experts. Feel free to let me know in case any part of it has been left unanswered.
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP