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YouTube is no longer a secret way to make money. But that doesn’t mean you can start making money as soon as you make a YouTube channel. To do that, you need to build an audience base. Then you can take part in other YouTube programmes like ads, consulting, affiliate sales, and other ways to make money as a freelancer. In this article, we’ll talk about how to register your YouTube channel for GST.
Advertising is the main way that YouTube makes money. Some other ways are through Super Chat, Channel memberships, selling stuff, and so on. You can join the YouTube partners programme if you meet certain terms and conditions set by YouTube (YPP). As a partner, you let YouTube use your space to show its ads. Then YouTube gives you a certain amount of its money. When it comes to making money, tax payments are part of the next step. To run your YouTube business legally and well, you must get GST Registration.
Importance of GST Registration for YouTube channel
Everyone must register for GST if their annual sales are more than Rs. 20 lakhs (some states with a turnover limit of Rs. 10 Lakhs).
But everyone has to register for GST for their YouTube channel, even if it doesn’t make more than the threshold turnover.
First, let’s talk about how YouTubers fall under GST as service providers.
When a YouTube channel owner posts something to their channel, they are sending content to YouTube. And YouTube uses that content to make money through AdSense, which brings in money that YouTube then shares with you. This means that you’re running a business. Because it is against the law to put up ads without your permission.
As a YouTube partner, you let YouTube put ads on your channel; you become a service provider. This means you are following section 2(17) of the IGST Act 2017 of the GST Act.
And YouTube is a supplier because it lets people access and get information from online databases (OIDAR).
The GST law says that some suppliers are different and must register for GST no matter how much money they make. Because of the OIDAR service, a YouTuber is part of this group.
YouTuber supply service as an export service
Tax rules say that GST registration in India is based on the territory from which the supplier sells. But the contracting agency “Google Asia Pacific,” which is based in Singapore, is not in the taxable territory. The Indian YouTubers do work for the agency in Singapore. So, as far as the taxable territory goes, there is no way to charge GST.
But this service is one that can be exported. In this case, the YouTuber (who is providing the service) is in India, while Google Asia Pacific (who is getting the service) is outside of India. The YouTuber is paid in USD, which is easy to convert. So, the YouTuber is selling online content services to other countries.
But then, under section 16(1)(a) of the IGST Act, 2017, these services fall under “Zero Rated Supply,” which includes exporting goods or services. So you don’t need to pay GST. And your income as Zero rate supplies is proof of this.
After applying for GST Registration in India, you can choose either of these two ways to get a refund for a zero-rated supply under section 16(3) of the IGST Act, 2017.
If you have a bond or letter of undertaking, you don’t have to pay IGST when you export a service.
Or, you can pay integrated tax and then get your money back later.
Compliance with GST for YouTubers and Bloggers
For all services delivered, a GST invoice must be made, and it must include things like the invoice number, the date of the invoice, the value of the services, and the GST rate.
Even though there is no standard way for YouTubers or bloggers to make a GST invoice, the law says that all GST invoices have to have certain things on them. Form GSTR-1, which is the GST return, needs to have all of the information from all invoices. The GST laws say that all invoices must be made in the right way.
Like every other taxpayer, YouTubers and bloggers have to file a GST Return and send in forms GSTR-1 and GSTR-3B.
Final thoughts
As per GST law, YouTube’s service falls under “supply of service,” and the nature of the service is the same as “export of service.” According to the IGST Act of 2017, you don’t have to pay tax.
But you have to register for GST for your YouTube channel and file your GST returns under “Zero Rated Supply.”
You might not have to pay GST, though, if you report the income as a Zero-Rated supply.
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Tag : GST Filing, GST Registration, TDS Filing