• Free ebooks service - will supply attract GST?

Dear Sir Madam. 
I am Chokkalingam Ramanathan from Coimbatore - Tamilnadu.

I am Planning to start a startup co dealing with monthly e magazine . ( Publishing ). We are planning to Distribute ( Supply ) the e magazine for Readers at Free of cost . Our Source of Income is Advertisement from B2B / B2C Customers .

My Questions are : 01. The above mentioned Business is fall under OIDAR Service ?
02. Supplying ( Service ) E magazines will allowed under GST
03. Supplying the e magazines at free of cost through Social Media / other internet platforms will attract GST tax.
04. What are Returns will follow in GST 

Looking for a Guidance on this .

Thanking you

Chokkalingam Ramanathan
Asked 17 days ago in GST

If its free of cost and the person downloading the same is not related to you. Then No GST. If the person is related, then we have determine the value of Goods /Services as per Schedule 1,

As you will be getting Income by way of Advertisements, Then GST is required to be paid on that Amount. If the advertisement is in print media than 5%, if its digital Media then 18%..

 

Regarding the form you are required to file is GSTR 1, GSTR 3B for payment and Annual Return 9 and 9C

Sushma Munoyat
CA, Bangalore
27 Answers
2 Consultations

5.0 on 5.0

Hi

 

Yes, it would be covered under OIDAR services. You need to charge GST for providing advertisement spaces.

Since e-books are provided free of cost, it would not be taxable under GST.

You need to register under GST once your turnover crosses 20 lacs. Thereafter, you need to file GSTR 1, GSTR 3B and annual return.

Lakshita Bhandari
CA, Mumbai
5160 Answers
348 Consultations

5.0 on 5.0

Since you will be providing free e-books to everyone, Schedule I applicability on supplies to related party shall not be relevant.

Lakshita Bhandari
CA, Mumbai
5160 Answers
348 Consultations

5.0 on 5.0

1.Yes, it will be covered under OIDAR services. Monthly and quarterly returns will be applicable to you.

2. Yes you can supply E magazines under GST.

3. GST will be applicable on whatever revenue you earn.

 

Ruchi Goel Anchal
CA, Gurgaon
362 Answers
2 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

1. Yes, it will be covered under OIDAR services. 

 

2.Yes, it is allowed.

 

3.No, there will be no GST liability on the same.

 

4.You need to file GSTR 1, GSTR 3B and annual return 9 & 9C.

Payal Chhajed
CA, Mumbai
4796 Answers
90 Consultations

5.0 on 5.0

Yes online advertisement also falls under OIDAR.

Yes it's allowed.

If you are providing it free of cost then no GST is payable but you can't claim any credit related to same.

GSTR 1 and 3B for the start.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
3602 Answers
39 Consultations

5.0 on 5.0

Hi

 

1.Yes this will covered under oidar. OIDAR is a category of services provided through the medium of internet and received by the recipient online without having any physical interface with the supplier of such services.

 

2. Yes it is allowed.

 

3. On free of cost  no gst liability.

 

4. GSTR 1 quarterly GSTR 3 B monthly.

Karishma Chhajer
CA, Jodhpur
2167 Answers
15 Consultations

5.0 on 5.0

Hi

 

Please have a phone consultation for detail discussion

Karishma Chhajer
CA, Jodhpur
2167 Answers
15 Consultations

5.0 on 5.0

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