YouTube is no more a secret revenue generator. But that does not mean that you start earning as you start your YouTube channel. For that, you should create a base of audience. Then participate in other YouTube programs such as YouTube advertisements, consultancy services, affiliate sales, and other freelance earnings from YouTube. In this article, we will understand GST Registration for Youtube channel.
YouTube earns most of its revenue from advertising. Some other ways are Super Chat, Channel memberships, merchandise, etc. On satisfying certain terms and conditions of YouTube, you become eligible to participate in the YouTube partners program (YPP). As a partner, you allow YouTube to show its ads on your space. Then YouTube shares some percentage of its revenue with you. When it is a matter of earning, then tax payment becomes a part of the further process. To successfully and legally run your youtube business, you must get GST Registration.
Importance of GST Registration for YouTube channel
GST registration is a mandatory requirement for everyone if the annual turnover exceeds Rs. 20 lakhs (some states with a turnover limit of Rs. 10 Lakhs).
However, everyone is liable to do GST registration for YouTube channel, even though it does not exceed the threshold turnover.
Before that, let’s understand how YouTubers come under GST as a supplier of services.
When a YouTube channel owner uploads content on YouTube, the owner is delivering content to YouTube. And that content is used for monetization purposes by YouTube through AdSense, which generates income, and YouTube shares the earning with you. This means you are involved in a business. Because without your consent placing ads will be unlawful.
As a partner of YouTube, you permit to place their ads on your channel; you become a supplier of services. This means you are complying with the GST Act, under section 2(17) of the IGST Act 2017.
And YouTuber acts as a supplier because it offers online information database access and retrieval services (OIDAR).
As per the GST law, some suppliers are different, for whom GST registration is mandatory without considering their turnover value. And a YouTuber belongs to this category because of the OIDAR service.
YouTuber supply service as an export service
As per Tax regulations, GST registration in India is based on the territory of the supplier from where it supplies. But the contracting agency ‘Google Asia Pacific’ is not in the taxable territory because they are based in Singapore. The YouTubers in India supply services to the agency in Singapore. So as per taxable territory, there is no question of levying GST.
But this service qualifies as an export of services. Here the YouTuber (the service provider) is in India, and Google Asia Pacific (the service recipient) is outside India the YouTuber receives payment in convertible USD. So, the YouTuber is exporting online content services.
But then these services fall under ‘Zero Rated Supply’ under the section of 16(1)(a) of IGST Act, 2017, which includes exporting goods or services. So, you are not liable to pay GST. And you show this through your revenue as Zero rate supplies.
To claim your refund through Zero Rated Supply, you can opt for any of these two methods under section 16(3) of the IGST Act, 2017 after applying for GST Registration in India.
- You can export service under a bond or letter of undertaking without paying IGST.
- Or you can pay integrated tax and later claim the refund.
Compliance with GST for YouTubers and Bloggers
For all services delivered, a GST invoice must be produced, and the invoice must include the invoice number, date of invoice, value of services provided, and GST rate, among other things.
Despite the fact that there is no standard structure for YouTubers or bloggers to use when creating a GST invoice, the law requires that certain things be included on all GST invoices. The information of all invoices must be included in Form GSTR-1, which is the GST return. All invoices must be properly raised in accordance with the GST laws.
YouTubers and bloggers also need to do GST Return Filing, like all other taxpayers and must submit GSTR-1 and GSTR-3B.
YouTube service falls under ‘Supply of service,’ and the nature of service complies with ‘export of service’ as per GST law. You may not pay tax as per the IGST Act, 2017.
But you have to do GST registration for YouTube channel and file your GST returns under ‘Zero Rated Supply.’
However, you might not need not pay GST when you show the revenue as a Zero-Rated supply.
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