So far, the blogging community had no place in the Indian tax system. But in GST i.e., GST – Goods and Services Tax bloggers have been brought to the Indian tax system.Bloggers will have to pay GST return from 1 July 2017.
Some rules have been made under which bloggers will have to pay GST return. This is because many bloggers earn money from Google ads or Flipkart and Amazon Affiliate programs.
Bloggers in new GST have been included to fill GST returns. No tax registration in this tax system takes huge penalties.
By publishing this article, we are looking forward to helping bloggers. In this article, we have tried to include all the major points associated with GST.
What is blogging? How did bloggers fill tax before GST?
Writing online content in simple language is blogging. Perhaps today, all the companies present on the Internet have created a blog to deliver information about people, products and services to the people.
When the content of the blog is searched in the search engine, the visitors grow on the blog, and blog traffic becomes popular due to increase in blog traffic. If there is more traffic on the blog then it can be monetized by placing advertisements.
In Indian Taxation Law, there is a tax on earnings made from advertisements, so advertisements made from blogs come within the scope of tax.
But in the old service tax law, it has not been clearly told that service tax registration is necessary or not necessary for such bloggers.
Most of us earn money from bloggers from abroad. The payment sent by Google AdSense does not come from Google India and comes from Google Asia Pacific Singapore.
The old service tax system will expire soon and instead it will introduce new Goods and Services Tax since 1 July 2017.
GST registration and tax for bloggers
Bloggers will have to pay GST return from 1 July 2017. The new GST Law is very clear that who should register under it.
According to the Central GST Act, the person who is earning from outside the state or outside the country will have to register the GST and the exemption limit will not be applicable to it.
In other words, there is a discount of up to 20 lakh for small dealers and service providers working within the state limits.
But people earning from abroad, such as bloggers, require GST registration and will not get a discount.
In addition, according to GST, the blogging service is kept inside the online information and database access or retrieval service.
Penalty on non-registration
If a blogger does not get a GST registration, then it will take two types of penalties.
Not to register – up to Rs. 25,000
Non filing of returns – Rs 100 per day
Bloggers will not get a discount of 20 lakhs
As I mentioned above, bloggers who are earning outside their state or abroad, they will not get the benefit of the rebate given to earning up to 20 lakhs.
Will the bloggers have to fill GST returns?
Yes, now bloggers in India will have to fill GST returns. Because bloggers now earn from India and not only earn from outside India and therefore, it will not be considered as a service export.
This will make it mandatory for all bloggers who make more than Rs 20 lakh annually to fill the GST return. But if you are earning in dollars then earning 1 dollar will also have to pay a GST return.
Apart from this, if you earn anything out of the house, then you have to verify that the payment is export service or not.
When will the income from the blog be considered as an export service?
– Blogger does blogging in India.
– The service provider lives outside India. If you receive payments from Google India, then it will not be considered as an export service. So you have to give GST.
– The place you are giving your service is outside India. The place to provide service has been given in detail in detail.
– The payments that the blogger gives to the service are available after the foreign exchange.
If these things apply to you, then blogging will be treated as Income Support Service and you will not have to give 18% GST.
When the service was given outside India or India
The Blogger, which is providing its services, will be considered in India if at least two of the below conditions are met.
1. The person who receives service from the internet or the company’s address has tax rules.
2. Credit card or debit card or store value card or charge card or smart card or any other card through which Blogger’s service provider pays its payment, the rules of tax apply to the address at which the address is issued.
Apart from this, the recipient / service provider …
3. Tax rules are applicable on the billing address.
4. The Internet protocol of the device comes in the taxable area.
5. The bank account used for the payment comes in the taxable area.
6. The country code of the Subscriber Identity Module card is of the taxable area.
7. Fixed landline location comes in the taxable area.
Simple words, if any of the above two conditions are mentioned together, then blogging will not be treated as a service export. Hence, exemption from GST will not be available.
How much is GST tax for bloggers?
Bloggers will have to give 18% GST tax on income above 20 lakhs. Adsense income and foreign affiliate marketing professionals who earn less than Rs 20 lakh, also have to register a GST and fill the quarterly returns.
When will GST be paid on AdSense?
Some important things are that if you apply it, then the Adsense Income will not be considered within the Export of Services. Please read the next post carefully – when you get 18% GST on the AdSense income.
What documents do bloggers need to register for GST?
1. Blogger’s photos
– Proprietor photo when proprietorship
– Photo of Managing Partner / Designated Partner on being firm / LLP
– Photo of Managing Director / Whole Time Director on Company
2. Certificate of Registration
– Partnership Deed on being a Partnership Firm
– LLP and registration certificate for the company
– Documents are not required when they are proprietorship
3. Certificate of Business Key Address
– If you have a property then electricity bill, tax receipt or property tax receipt or registry document
– If the rental is a property then the bill of the agreement with the agreement of the agreement or lease agreement,
– If you are neither owner nor on rent, copy of NOC with electricity bill
4. Other papers
– Scanned copy of bank statement or bank passbook; Cancellated check on which name, bank account number, MICR, IFSC and branch data and codes
– Authorization Form
Compilation after GST registration
After GST registration, bloggers will have to do this work regularly every three months.
– Outward Returns (Sales Returns) must be filed by the 10th of the Falling Month
– Inward Returns (Purchase Returns) must be filed by the 15th of the Falling Month
– Consolidated Returning Fellows will be filled up by 20th of the month
– All urgent tax filling will be filled up by 20th of the month
– Every single invoice (receipt) will be uploaded on the official portal
Will the bloggers get the benefit of the composition scheme?
Small traders and dealers now earning up to Rs 1.5 crore now get the benefit of the composition scheme. According to which they have to work on quarter-line instead of every month. Apart from this, 18% of total revenue is taxed and 2% is taxed.
Because the earnings of bloggers are mostly of Interstate Service Nature (between two or more states), the benefits of the Composition Scheme will not be applicable to Indian bloggers, i.e. the quarterly GST return will be required.
Visit the official website of GST registration for more information.
I have tried to cover every important aspect related to bloggers’ GST. Despite this, GST is very complex, so even after reading this article, understand it with your CA. If you have questions about GST then ask us by commenting.