GST i.e. Good and Services Tax is launched today at 12:00 AM 1 July 2017. GST is a uniform of all the indirect tax throughout India to replace various taxes levied on Sale, transfer, barter, purchase, or goods import and service by the state and central governments. There is a lot of information to be announced, some clarity on a number of laws indicate that GST will also have significant impact on bloggers and affiliate marketers.
BENGALURU: The city of techies and all sorts of bloggers who are passionate about tech, travel, food, fashion and entertainment. These days, they can’t stop obsess in excess of GST.
So, here’s how GST (One Nation One Tax) will Impact on bloggers, freelancers, affiliate, and digital marketers:
Nowadays, blogging is an amazing source of money making online which is followed by moms, students, professionals and travelers etc. Bloggers are earning money through advertising and partnering with brands and businesses are liable to pay 15% tax on income they earned through blogging in addition on tax on income. But with the Goods and Services Tax (GST) rule set to begin on July 1 2017, BENGALURU’s bloggers are grepping for clarity on what changes for them. What’s certain is bloggers will be required to pay an 18% GST on annual exceeding revenue of 20 Lac.
Beyond that, there’s confusion on how the new tax rules will apply to them given the liquefied nature of their business. GST Registration Under GST, bloggers and affiliate marketers fall under the online information sharing, data access, and retrieval services (OIDARS) i.e. those who provide an electronic services like cloud computing, digital data storage, digital content sharing (e-books, music, events, movies), online gaming, data or information technology etc.
According to the information so far received, all bloggers need to obtain GST registration compulsory, if you fulfill list of conditions, out of huge list of taxation, there are three conditions which concern bloggers and affiliate marketers as follows:
Your annual turnover exceeds Rs. 20 Lac. (Rs 10 lakh for special category states)You make inter-states supply of goods and services (often in case for a bloggers)
You are providing information and database access from place outside India to a person in India.
Although, according to second point, if you are not earning more than 20 lakhs or more annually from your blog but sharing online information and data retrieval services, you will have to obtain GST registration and certificate. If your blog is visited and read by inter-state and blog is making commission on products from outside of your state.
According to third point, blogger living outside India but supplying services in India are also liable to obtain GST registration even if their annual turnover does not exceeding Rs.20 lakhs
Apart from affiliate commissions, bloggers and affiliate marketers also earn via advertising. If you are earning via ads services within your state then you will be exempt from GST in case your annual revenue doesn’t exceed the limit. But if you are providing ad services outside of your state too, then you will not be exempted from GST even though you earn less than Rs 20 lakh every year.
What is liable individual does not obtain GST registration or commits a fraud?
In case, someone evades GST registration, does not pay tax or makes short payments, they will be charged with penalty of 10% of the tax amount due or minimum of 10k.
In case, if someone commits fraud while filing GST, they will be charged with a penalty of 100% of tax amount evaded etc. The offender will also be charge with prison term if tax amount exceeds 50 lakhs.
How blogging services handled under GST, if it is delivered outside India?
- A service will be considered export of services only if:The supplier of blogger is located in India
- The recipient of service is located outside India
- The payment of service is received in convertible foreign exchange
- The serving place is outside India
- If your blog or website is serving to a recipient who doesn’t fall under any of below mentioned category then your serving place would be considered as outside.
- Location of address given by the recipient of service in India
- Credit/Debit Card used for payment issued in India
- Billing address of services recipient in India
- IP address of device used by service recipient in India
- Bank of services used in India
- Country Code of SIM in India
- Location of fixed line through service is received in India
GST has impacted on all Indian bloggers; however all are not falling in this category. Stay up to date with the happenings of GST on bloggers and affiliate marketers. Subscribe Now !I did love to hear from you.