Tax, GST and invoice

[ss_architect]

I'm a resident of India. Do I need to pay GST for earnings from my agency account even I get paid from clients outside of India?

And for invoice, Do I recieve in INR or USD?

Tax, GST and invoice  

[759e32fa · Accepted solution]

Hi Shivaprasad,

Thank you for reaching out to us. If you do not currently have a GST number, you may wish to consult with a trusted tax expert or advisor as Upwork cannot provide tax advice. For more information, please refer to this help article.

[ss_architect]

Hi Annie,

Thank you for the reply.  I do have the GST number, but wan't to know weather UPwork will deduct the GST or not. If I earn from Foregin clients and in what currency UPwork provides me Invoice?

Tax, GST and invoice 

[kochubei_valeria]

Shivaprasad,

Please, note that at this time, Upwork does not assess or collect GST on transactions. I encourage you to check the article AJ shared earlier for more information. Unfortunately, we are unable to provide specific tax advise and recommend that you check with a local tax adviser.

[4fc4e354]

Hi Shivaprasad,

Through upwork either you are providing services to your Indian client or foreign client.If you are providing services through upwork to a foreign client and receiving the money in convertible foreign exchange(in $) (Please take identity card of person to whom you are providing services as a proof to identify location of your consumer that is he/she is from outside India) then it amounts to export of services. In case of export of services , Government has provided two options:

A) To pay GST @18% and claim refund of the same.

B) Comply conditions mentioned in LAW and do not pay GST on your export turnover.

In my opinion, second option is better.

In case you provide services to a client residing in India ,through upwork, then it does not amount to export of services and normal provision of GST would apply and accordingly either Pay 18% from your pocket or while entering into contract with your consumer the total contract value should be contract value +18% GST.

I hope that I have solved your query and in case you are still not satisfied you can drop me a message on upwork.

Regards

CA Shrey Salecha

[95087c0e]

Hi Shrey,

Had a GST related question. 

I am new to Upwork. My annual income is to be below the 20 lac threshold due to which I thought I would not have to apply for a GST id.  But reading through one of the documents in upwork I saw this:

"According to India’s Goods and Services Tax (GST) laws, freelancing services are categorized under database and online information."

Going by this does it mean that the 20 Lac threshold does not matter and that work done through Upwork comes under OIDAR due to which I will have to file for GST id?  I opened a separate thread on this earlier.  I think I should probably have replied to this one....not sure. Thanks.

[4fc4e354]

As per CGST Act,2017, freelancing services do not fall under definiton of OIDAR services.Hence, limit of turnover of Rs.20 lakh shall apply for GST registration.

 I hope that I have solved your query and in case you are still not satisfied you can drop me a message on upwork.

Regards

CA Shrey Salecha

[95087c0e]

Thank you for clarifying, fully understand.  However a follow-up scenario. 

Do we have to pay reverse GST on the 10% service fee that Upwork charges, and due to which we have to apply for GST under Section24? 

Once again annual turnover is below the 20 lakhs limit.

[4fc4e354]

In my opinion, the service provided by the Upworkis in the nature of intermediary services.  And as per the GST law, the place of supply in the case of intermediary services shall be the location of the supplier of intermediary services.
Where a platform does not have its location in India, the place of supply will be outside India, and such services will not be covered under the RCM.

[db26b815]

It is based on you earning there is certain limit on registration of gst as well as for taxable turnover