Google’s subsidiary Youtube exists. It is a website that lets people make, share, and watch videos. Online adverts that are broadcast on YouTube generate revenue for the service. The platform enables the user to access their Youtube channel.
The channel owner might start receiving payments after the video and channel reach a certain threshold for visitors and subscribers. Youtubers is the millennial slang term for these people.
In contrast, bloggers work with brands to produce films that promote their goods and services. Bloggers and brands work together for compensation. Collaborations are the main way that bloggers make money.
Can you term the revenue from blogging and watching YouTube “Supply”?
A “supply” under the GST is defined under Section 7 of the CGST Act. Only if a transaction falls under the supply definition will it be subject to the GST. In addition, supplying goods or services in exchange for money will count as a supply.
The CGST Act also defines “service” as anything other than goods, money, and securities. Activities involving money are likewise included, unless their conversion is individually paid for a fee.
By uploading videos and other content to their channel with the intention of making money and offering a platform for advertising, YouTubers provide services. By giving advertisers a platform to display their ads and make money from them, bloggers provide a service. So, it seems sense to classify bloggers and YouTubers as service providers.
Blogger services can be categorised as database and online information access or retrieval services. Online Information and Database Access or Retrieval (OIDAR) services are those where information is delivered using information technology over the internet or another electronic network, including online advertising services, according to Section 2(17) of the IGST Act. Supply is automated, requires little human involvement, and cannot be shared without information technology.
Bloggers and YouTubers should register for GST.
The key question that now emerges is whether or not all bloggers and YouTubers are registered under the GST Act. Do they pay GST on revenue from YouTube? Do they send Google invoices? Can they get a reimbursement?
The GST Act mandates that service providers with annual sales of over Rs. 20 lakhs register under the GST Act and pay GST on their YouTube revenue. They must also send out invoices and then submit IT returns.
GST rate for YouTuber salaries in India
India’s GST rate for youtube earnings is 18% (9% CGST and 9% SGST). YouTubers are only required to pay this type of YouTube income tax if they are required to register for GST.
YouTubers exporting services, however, is seen as a zero-rated supplier. As a result, no GST is applied to these shipments.
To determine whether the supply is domestic or exported, one must also comprehend the idea of a place of supply.
We now need to keep in mind that the exports would only be regarded as zero-rated supply if these other requirements are met:
1. The service provider is based in India.
2. The service recipient’s location is outside of India.
3. The supply location is outside of India.
4. Convertible foreign currency is used to pay for the services rendered.
For bloggers and YouTubers, GST compliance
For each service rendered, a GST invoice must be issued, and this invoice must include details such as the service’s value, the date it was supplied, the GST rate, and more.
YouTubers and bloggers can raise a GST invoice in any format, but the law requires that certain items be listed on all GST invoices. All invoice information must be included in the GST return’s Form GSTR-1. According to GST regulations, all invoices must be raised properly.
Bloggers and YouTubers alike must submit GSTR-1 and GSTR-3B tax returns.
What are the covered Penalties?
YouTubers who are subject to GST are subject to a direct fine of Rs. 25000/- if they fail to register. The late fee for submitting a GST return after the deadline is Rs 100 per day per return.
Conclusion
Today, everything is digitalized, from business to recreation. Online platforms are being used by people to make an increasing amount of money. Most people have discovered their vocation through Youtube vlogging. The number of new YouTube channels has grown dramatically as a result of the pandemic. A YouTuber needs to understand how GST affects YouTube earnings in addition to launching a well-developed YouTube channel.
Finding your target audience is the one factor that will determine your success on YouTube. The lack of a prerequisite degree or minimum age is one of the best benefits of finding a job on YouTube. Simply pick up your phone or laptop and begin taking pictures. You are not required to obtain outside funding. All you need to be is talented and committed to your work.Additionally, you must adhere to the GST compliances on Youtube tax if you want your profession on YouTube to work successfully.
Do you have problems with GST and payment management? Connect with Srvassociates, your will get professionals who will help you in your entire journey whether its income tax filing or GST filing, and more. Do it now.