Instabill - GST Invoice, Payment & Inventory Software Download for FREE

03 Jul 2019Posted By: Mudit Handa


What are the rules of GST for Freelancers in Digital Marketing?

It is beyond any doubt that the Goods & Service Tax has altogether changed the way we used to conduct our business. The GST regime has simplified compliance in almost every kind of business.

Now, if we talk about the freelancer business, it has really become a profitable economic activity these days. The advent of the GST regime has made this an even more lucrative business for young entrepreneurs. The freelancers having GST registration have much more scope than the unregistered ones.

Let us see how GST has benefitted the freelancers in recent years. 

 

1. Who is a freelancer?

A freelancer is someone who independently performs various short-term as well as long-term jobs on a contractual basis. This means that he is not employed by anyone anywhere yet he earns a certain income for his services. Since freelancing is also a kind of service, the government has included it under the ambit of GST. 

 

2. Which Freelancers have to get GST registration?

Freelancers who are offering services to their clients and are having a turnover beyond ₹20 lakhs must get GST registration. 

 

3. Which Freelancers need not get GST registration?

Those who are having a turnover up to ₹20 lakhs and whose services are restricted within their state are exempted from GST Registration.  

 

4. How does GST apply on freelancers in special category states?

The applicability of GST law is however different for the freelancers in the North-east states of Uttarakhand, Jammu & Kashmir, and Himachal Pradesh. In these special category states, you must have a turnover up to ₹20 lacs annually to be exempt from GST Registration. Besides, you must provide your services to the clients within your states to be eligible for GST exemption.

 

5. How does GST apply to freelance writers?

One such profession that has flourished these days is of independent professional bloggers or freelance content writers. However, the applicability of GST is doubtful in this case.

  • Now, it’s important to remember that the service provided is of advertisement. A freelancer basically sells space on your blog section to various companies. 
  • The advertisers may belong to the same state or may be located beyond the state boundaries.
  • If they belong to a different state the GST rules for services would apply. 
  • In case, the advertising space is provided to companies using Google Adsense, there might not be any information about such companies. Some of them may be located abroad. In such a case, the GST invoice can’t be raised. 

From May 2018 onwards, the GST law hasn’t made clear as to GST would apply in this case.

 

6. How has freelancing become easier after GST?

Earlier, in the service tax regime, it was mandatory to get tax registration if turnover exceeds ₹9 lacs. Now, GST registration is required if turnover exceeds ₹40 lakh (₹20 lakh in case of North-east states). Hence, there is much relaxation to the freelancers. 

However, those who provide services via e-commerce, have to compulsorily get GST registration, irrespective of their turnover.

If you need any sort of assistance on the GST registration, please feel free to contact our business advisor at 8881-069-069.

Download E-Startup Mobile App and Never miss the latest updates relating to your business.

Give a Reply

E-startupIndia Mobile App

GET E-STARTUP INDIA IN YOUR
POCKET!

Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Providing business banking solutions in association with ICICI Bank.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

IN THE MEDIA

  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9

CONNECT WITH US