• Is GST required for youtube video income

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 ?
Asked 4 years ago in GST

Hi

What is your annual turnover?

If it is below 20 lacs, you are out of GST ambit.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

Hi

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.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

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.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

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-

Either

1. Export with payment of GST and claim back the refund.

Or

2. File Letter of Undertaking and then export without payment of GST.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

You can apply for LUT and export your services without payment of IGST.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

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.

B Vijaya Kumar
CA, Hyderabad
965 Answers
124 Consultations

5.0 on 5.0

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

3. You

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.

Regards

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

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.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

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.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

Hi,

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.

Regards,

CA. Sunny Thakral

Sunny Thakral
CA, Delhi
224 Answers
8 Consultations

5.0 on 5.0

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?

Amrut Deshmukh
CA, Nagpur
27 Answers
1 Consultation

5.0 on 5.0

Dear Sir,

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.

CA. Ruchi Luthra
CA, New Delhi
4 Answers

4.0 on 5.0

Dear

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.

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

Dear Sir,

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.

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

Dear,

When you crossed the threshold limit of Rs.20 lacs?

Regards

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

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.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

If the amount is received in USD from foreign party then GST is not applicable.

Rohit Vyas
CA, Mumbai
10 Answers

4.0 on 5.0

Hi,

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.

Regards,

CA. Sunny Thakral

Sunny Thakral
CA, Delhi
224 Answers
8 Consultations

5.0 on 5.0

Dear sir,

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.

Seema Agrawal
CA, Jaipur
1 Answer

Not rated

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

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hello,

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.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

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