mail-box-lead-generation

written by | April 11, 2022

How does GST on YouTube Income Work?

×

Table of Content


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.

What is Youtube Income?

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.

Also Read: 12 Great Ways to Earn 1 Lakh Per Month Online

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.

Also Read: Things You Need to Know About GST Explained in Details

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.

Conclusion

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.

Do you have issues with payment management and GST? Install the Khatabook App, a friend-in-need and one-stop solution for all issues related to income-tax or GST filing, employee management, and more. Try it today!

FAQs

Q: Do I need to pay GST if I provide content to a foreign audience?

Ans:

No,providing content to a foreign audience is considered zero-rate supplied. Hence, no GST is applicable on it if you have followed the other conditions issued by the government.

Q: Is there any tax on Google Adsense?

Ans:

No,the earnings which YouTubers get from Adsense are exempt from the GST.

Q: Is there any tax on youtube earnings?

Ans:

Yes,if you have started getting a response in the form of reviews from people and have started earning, you have to pay youtube income tax. Youtube has started deducting these taxes from your earnings from June 2021.

Q: What is the rate of GST rate applicable to Youtube income?

Ans:

The combined GST rate on youtube income is 18%, which is a combination of 9% CGST and 9% SGST.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
×
mail-box-lead-generation
Get Started
Access Tally data on Your Mobile
Error: Invalid Phone Number

Are you a licensed Tally user?

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.