11 Issues answered on GST impact on blogging in India
by Paras Mehra 4.65K
There has been a lot of talk and discussion about the GST impact on bloggers. Further, after my first article of impact of GST on bloggers I got a hell lot of queries from bloggers all over India. Further, I was also invited by Mr. Raj owner of Hostmyblog.co to have twitter chat to answer the questions of bloggers.
From that discussion, we got certain important question that were in the mind of bloggers and hence thought of sharing these answers.
Let us discuss these questions in depth:
Q1: Paras, if a blogger gets no advertising revenue, but gets commission based design work, under OIDAR there's no need for GST, right?
First of all, we need to understand that OIDAR is. OIDAR is the short form of online information and database access or retrieval. OIDAR is only one of the defined categories of services.
One must understand that whether it is OIDAR or any other service, GST is leviable and it is only exempt if government comes up with any specific notification which is not there currently.
Further, if you have no advertisement income but earning only any other income, then you must see whether you fall under OIDAR or not. If you fall, then you need to pay GST as defined.
However, if you are not covered under that definition, then you shall fall under other categories of services. Further, if you are earning those income from outside your state, then GST registration shall become mandatory and you shall liable to pay tax as usual.
Q2: Paying tax isn't a problem. It's figuring out if we need GST. & if we do, small bloggers may as well stop monetizing
I understand that GST is impacting a lot of industries and it is a genuine hardship on kids who are using their skills to blog.
However, the GST law is very new and hence you should give this law some time to settle down and you never know that government may come up with any specific notification. However right now, there is no exemption as such.
Q3: Where is a blogger going to find her Division Code, Range Code or Commissionerate code?
These codes are defined by the government of India based upon the jurisdiction of the offices. You can search it in the following link: Know your location
Q4: For bloggers who are not incorporated what should we upload in 'Proof of constitution of Business'?
Any blogger or any other person who is not incorporated as LLP or private limited company is said to be doing business as proprietorship. Hence, even if you are not incorporated, that does not mean that you cannot do business.
Proof of constitution of business is not required in case of bloggers/proprietors.
Q5: Paras what to click for 'Reason to obtain registration under GST?
Reason to obtain registration can be different in each case. Suppose, if you are a blogger and earning from outside India. Then you need to select interstate supplies.
Hence, reason may be different which depends upon case to case basis.
Q6: Date of commencement of biz' 'Date on which liability to register arises?
Date of commencement of business can be any date on which you started earning the blogging income substantially or if any government registration is taken then the date of such registration.
Further, if there is no such documents then you should choose the date which is more realistic as per your own judgment.
Q7: if I register for GST in my personal name & 1 yr later incorporate a company under my blog name, do I delete my old registration?
Yes, in that case, you need to cancel the existing GST license and take the new GST registration in the name of the company. This is because GST registration is completely based on PAN and for individuals and company, we have different Pan and therefore, new GST registration shall be required.
Q8: Paras, most Bloggers have not incorporated their business of blogging as either sole proprietorship, LLP, OPC or PVT LTD. Does Government expect bloggers to incorporate? Because parts of GST registration form asks for 'Legal name of the Business'&' trade name'.
No, government does not want each and every person to be registered as LLP or private company. An individual doing business independently is regarded as a proprietor. Further, part the GST registration form ask for two types of name:
- Name as in the PAN card: You need to write the name as exactly as written in your PAN card.
- Trade name: Trade name means the name which denotes your business like USHA international, LELO international etc.
Q.9 What should #Bloggers key into fields 'Legal name of the Business' & 'trade name' Our personal name as written on PAN card under GST?
Yes, for legal name of the business you should write the name as exactly written in the PAN card. Further for trade name, you can choose your blog url name as your trade name.
Q10: Paras in the 'Promoter/Partners' section of #GST form, do Bloggers have to fill in anything if we are not incorporated?
If you choose your form of business as proprietor, then promoter/partner section shall not be visible as all. Further, authorised signatory in case of proprietorship is also the owner itself.
However, you may also choose any other authorised person as well.
Q11: If I'm getting paid small amounts by a US based entity, for ads on my blog, do I have to pay GST? Is that not an export?
For any service to be eligible as exports, needs to fulfill the condition mentioned in section 2(6) of Integrated GST act. However, if you are from India and all your clients are from US and they pay you in US dollars, then you services shall be treated as export of services.
But make sure you comply with the procedure as laid down in section 16(3) of IGST act.
Conclusion
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