APPLICABILITY OF GST ON YOUTUBE CONTENT CREATOR
YouTube content creators are individuals or organizations who create and publish videos on the YouTube platform. These videos can be in the form of vlogs, comedy skits, how-to tutorials, music videos, or any other type of content.
Many YouTube content creators make money from their videos through advertising revenue, sponsorships, and product collaborations. Some content creators have also turned their online presence into successful businesses, with merchandise, tours, and other revenue streams.
Can a Youtuber & Blogging Income be said as a ” Supply”?
Section 7 of the CGST act mentioned the supply beneath the GST. Any transaction would arrive beneath the GST if it is covered beneath the supply definition. Moreover, the supply of goods or services with the consideration of executing the business would be a supply.
The service is also described beneath the CGST act to mean anything excluding goods, money, and securities. The same includes the activities along with money, or its conversion is charged individually for some consideration.
In the context of GST, a supply refers to the sale or transfer of goods or the provision of services in exchange for a consideration (money or something else of value). So, if a YouTube content creator is creating and publishing videos in exchange for monetary compensation or other forms of compensation such as free products or services, it could be considered a supply of services and therefore subject to GST.
Similarly, if a blogger is providing written content in exchange for monetary compensation or other forms of compensation, it can be considered a supply of service and subject to GST.
Is GST enrollment mandatory for Bloggers & Youtubers?
In India, businesses with annual turnover above a certain threshold (currently Rs. 20 lakhs) are required to register for GST. If a blogger or YouTube content creator’s income from their blog or channel exceeds this threshold, they would be required to register for GST and charge GST on their income.
They would also need to file regular GST returns and pay GST on any goods or services they purchase for their business. It’s important for them to keep records of all their income and expenses to ensure compliance with GST laws.
However, if the income of a Blogger or Youtuber falls below the threshold limit, they are not required to register under GST and can still carry on their activities.
It is always advisable to check with local tax authorities or a tax professional for specific guidance regarding GST registration and compliance.
For example, when Mr. Akash, Lucknow, writes blogs about food and poses Rs 5 lakh. He has contracted a devoted space on his blog to Pinstorm, advertising the agency enrolled in Delhi, for kitchen appliances ads on pay-per-impression grounds.
If the turnover of the YouTuber and blogger is Rs 50 lakh and if they meet the conditions they might indeed choose the composition scheme available for the service providers.
GST Rate Imposed on YouTubers and Blogger’s Income Earned
The GST rate subjected to apply towards the services rendered by the YouTubers and bloggers is 18% (that is, CGST of 9% and SGST of 9% or IGST of 18%). This GST rate applies only when the YouTuber is responsible for GST registration or is GST enrolled.
Wherever the YouTubers or bloggers are exporting services these will be recognized as zero-rated supplies and no GST is imposed.
GST Compliance Requirements for Bloggers and YouTubers:
If a blogger or YouTube content creator is required to register for GST, they must comply with the following requirements:
- Register for GST: They must obtain a GST registration number and include it on all invoices and other official documents.
- Charge GST: They must charge GST on the income they earn from their blog or channel and collect it from their customers or advertisers.
- File GST Returns: They must file regular GST returns (monthly or quarterly, depending on their turnover) to report their GST liability and pay any GST owed to the government.
- Keep Records: They must maintain proper records of all their income and expenses, including GST invoices, to ensure compliance with GST laws.
- Comply with GST laws: They must comply with all GST laws and regulations, including those related to GST rates, input tax credits, and GST compliance ratings.
It’s important to note that the GST compliance requirements may change over time and differ by state, so it is advisable to check with local tax authorities or a tax professional for specific guidance.
When YouTuber & Blogging Services are Exported and Taxable as per GST?
When services such as YouTube content creation and blogging are exported, they are considered as an “export of services” under GST laws in India. Export of services is defined as the supply of any service when:
- The supplier of service is located in India
- The recipient of the service is located outside of India
- The place of supply of service is outside of India
- The payment for such service has been received by the supplier of service in convertible foreign exchange
For such services, the supplier (YouTuber or Blogger) can claim a refund of the GST paid on inputs and input services used in providing such services. They also need to file a claim for a refund with the proper authorities.
Additionally, the supplier of the service is required to obtain a Letter of Undertaking (LUT) or Bond from a Chartered Accountant or a Cost Accountant. This is a legal document that declares that the supplier will follow all the GST compliance regulations and will not claim any input tax credit.
It’s important to note that the GST compliance requirements for the export of services may change over time and differ by state, so it is advisable to check with local tax authorities or a tax professional for specific guidance.