GST Registration: IMPORTANT! Goods and services tax act applies on your income even in this eventuality
GST Registration: Post-COVID-19 lockdown, a good number of businesses are coming from the social media and those who were already monetizing their presence on platforms like YouTube, Facebook, Twitter, etc. have been able to increase their net volume.
GST Registration: Post-COVID-19 lockdown, a good number of businesses are coming from the social media and those who were already monetizing their presence on platforms like YouTube, Facebook, Twitter, etc. have been able to increase their net volume. However, for their information, they need to know that like any other income, their income from these social media platforms do fall under the purview of GST (Goods and Services Tax) Act.
Your Income
According to tax and investment experts, if a person's net annual turnover from the social media platforms touches Rs 20 lakh per annum, then it is mandatory for them to get GST registration. Photo: PTI
Income from YouTube, Facebook, Twitter, others
Speaking on the GST registration rule applicable on one's income from YouTube, Facebook, Twitter or any other social media platforms SEBI registered tax and investment expert Manikaran Singhal said, "If someone is earning to the tune of Rs 20 lakh or above in one financial year, it becomes mandatory for him or her to get GST registration against one's name or or the organisation owned by the earning individual." Photo: PTI
GST calculation on Income
On how the GST calculation will be applied post-GST registration Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "When you get GST registration, it's not that only you will file GST return, but you will have to charge GST to the people subscribing your social media services. For example, if you charge Rs 100 from your subscriber, and 18 per cent GST is applicable, then the voucher generated by the service provider will be Rs 118 (Rs 100 + Rs 18)." Photo: Reuters
GST calculation on Income if GST not charged
Jhaveri adds "If the person doesn't charge GST to customer then Rs 18 will go from one's pocket and in that case his or her social media income will be Rs 82 (Rs 100 - Rs 18) and that needs to be kept in mind while filing the GST return after GST registration. Photo: PTI
Where it is applicable
Singhal said that this Rs 20 lakh annual turnover is applicable on other service industry income too. So, if someone is earning Rs 20 lakh or more while providing any kind of service, then it becomes mandatory for getting the GST registration for that earning individual too. Photo: Reuters