Several taxes were imposed on goods and services in the old tax regime, such as Value Added Tax, Excise Duties, and Cess. The Goods and Services Tax (GST) was introduced in India to avoid multiple taxes. GST came into effect on 1st July 2017. GST is a kind of indirect tax imposed to avoid the cascading effect of taxes.
Under the system of Value Added Tax, the tax was imposed only at the final stage, which proved to be a burden on the final consumer. Under the Goods and Services Tax, the tax is levied at each stage of the sale of the goods. In addition to the Central Taxes, GST also subsumed the taxes such as entry tax, State VAT, Purchase Tax, Central Sales Tax, and so on.
Did You Know?
The highest-paid YouTube channel in 2021 had a record of earning ₹406 crores in that year.
Youtube is an online platform for free video-sharing and is operated across the world to let you watch online videos easily. Besides watching the videos online, you can also create and upload your videos on Youtube. Many users do this to generate income. It takes time to generate youtube income in India. But you can still earn big time through it. Many people happily use this platform to generate their passive income. You must keep in mind certain points to generate youtube earnings in India. These points are –
1. You must have a Gmail ID to become a youtube account holder.
2. You must meet specific criteria, after which you can start monetising your content on Youtube.
3. You must stick to the guidelines issued by youtube to upload your content.
Suppose you are generating income through creating Youtube videos. In that case, it is also very important to understand the youtube income tax in India and the impact of GST on youtube earnings.
Youtubers' Earning in India
Youtube is a US-based company that is a subsidiary of Google. Anyone can freely open their own channel and post videos on the platform as long as they stick to the guidelines.
A person who runs a youtube channel is a YouTuber. As per the policies of youtube, there is a certain limit on the number of subscribers and the number of views on the videos, after which a YouTuber can start monetising. They can also take the help of Google AdSense to earn through advertisements by placing them in their youtube videos.
When starting a youtube channel, every YouTuber wants to know how much a YouTuber can earn in India.
To be eligible for youtube income, a channel must have 4000 valid public watch hours in the last year and have more than 10000 subscribers. On average, YouTubers can earn between ₹3000 to ₹5000 per thousand video views.
The highest-paid YouTubers may earn approximately ₹150 crores per year. You can also calculate your youtube earnings through YouTubers’ income website check by filling in the required details.
Is there any GST on Youtube Income in India?
As per the provisions of the GST Act, 2017, a transaction comes under the scope of GST only if it comes under the definition of Supply. A supply of goods and services is considered only when there is a consideration in it.
Youtubers provide content to the users in the form of videos. They monetise their channel and provide a platform for advertising. They can be a supplier as per the GST Act. Since these services can be considered a supply, there is GST on the Youtuber’s earnings in India.
Do YouTubers have to Register under the GST Act?
If the total turnover on an All-India PAN basis exceeds the total limit of ₹20 lakhs in the preceding financial year, it becomes mandatory to get themselves registered under the GST Act.
For the special category states of India, this turnover limit becomes ₹10 lakhs. The special category states for registration as per the GST Act are – Assam, Arunachal Pradesh, Manipur, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Tripura, Nagaland, Sikkim, Himachal Pradesh, and Uttarakhand.
For example – If Shyam is a YouTuber residing in Delhi and his annual turnover in the preceding financial year is ₹15 lakhs, he doesn't need to get himself registered. But, if he is a resident of any of the special category states mentioned above, it becomes mandatory to get himself registered.
YouTubers can also opt for the composition scheme if their annual turnover in the preceding year exceeds ₹50 lakhs and they satisfy some other conditions. To verify their annual turnover, YouTubers have to submit the details of their youtube income details to the government.
Rate of GST on YouTuber Salary in India
The GST rate of 18% (9% CGST and 9% SGST) applies to youtube earnings in India. YouTubers must pay such youtube income tax only if they are liable to get themselves registered under GST.
However, in the case of YouTubers exporting services, it is considered a zero-rated supply. Hence, no GST is charged on such exports.
One must also understand the concept of a place of supply to understand whether the supply is domestic or exported. Now, we must keep in mind that the exports would be considered as zero-rated supply only if these other conditions are satisfied –
1. The location of the service provider is in India.
2. The location of the service receiver is outside India.
3. The place of supply is outside India.
4. The payment for the services provided is made in convertible foreign currency.
GST Compliances with a YouTuber’s Salary
There are some GST compliances that the YouTubers must follow as per the provisions of the Act. These compliances are –
1. For all the services provided by YouTubers, a GST invoice needs to be issued to the government. This invoice must have specific details, like the date on invoice, invoice number, the value of services rendered, the rate of GST applicable, etc.
2. There is no specific format for GST invoices raised by YouTubers. But the GST law has made the inclusion of certain details mandatory in invoices.
3. The details of all the invoices must be mentioned in Form GSTR-1.
4. All invoices must be raised while keeping in mind the guidelines issued by the government.
5. Like other GST taxpayers, YouTubers have to file the return of GSTR-1 and GSTR-3B to pay the tax on youtube income.
From work to leisure, everything is digitalised today. People are generating more and more revenue through online platforms. Most people have found their calling in Youtube vlogging. Due to the pandemic, there has been tremendous growth in new youtube channels. Besides starting a well-developed youtube channel, a YouTuber must also know the impact of GST on youtube earning.
Gaining success through youtube channels depends entirely on finding your target audience. One of the best advantages of finding a career on youtube is that it doesn’t require any degree or minimum age. You can just pick up your phone or a laptop and start shooting. You don’t need to secure any funding from outside. You just have to be talented and enthusiastic about your work. Also, to run your profession on youtube smoothly, you must stick to the GST compliances on Youtube tax.
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