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GST for freelancers/agencies in India

kochubei_valeria
Community Member

Upwork is now collecting General Service Tax (GST) Identification Numbers for freelancers and agencies located in India. We are not currently implementing any tax collection. The GST rules in India are complex, and Upwork is currently working to determine how the GST rules apply to all Indian freelancer and agency transactions being facilitated through Upwork’s platform. At this time, we are only collecting GST ID Numbers. 

 

We have sent an email to freelancers and agencies located in India notifying them of this update. If you have a GST ID number, we ask you to click the link provided in the email to update your taxpayer identification information. Or you can input the information by going to your “User Settings” and then “Tax Information.” Once you input your taxpayer identification number, this system will confirm that we have received your number.  The system will also let you respond to indicate that you do not have a GST ID number if you are not registered.

 

If you have any questions about GST or Tax IDs, we recommend that you consult a tax advisor to determine how the law applies in your specific case.

140 Comments
designernic
Community Member

I would like some information on whether GSTIN is necessary.

I'm just an individual in India doing some freelancing. I do not have a company. Hence do I need to get a GSTIN or is a W8BEN form enough for tax purposes?

AleksandarD
Community Manager

Hi Nishanth,

 

The W-8BEN form under Settings > Tax Info is to confirm you're not a US taxpayer. You can use your own legal name as it appears in your passport or other official documents. For your other question, you need to consult with a local tax advisor.

 

Thank you.

designernic
Community Member

Thank you for the reply. 

 

I will definitely consult with a local professional but I think the question I need answered is whether adding a GSTIN is mandatory or not on Upwork. 

 

If my tax consultant says getting a GSTIN for freelance work is not necessary but Upwork says that it is mandatory means I'll have to change my game plan. 

 

So yeah, that is the questions. 🙂 

rana1307
Community Member

I got email from Upwork asking for GST ID. 

Under GST law in India, I am not liable to get registered under GST Law as my income is less than the threshold limit.

My question:

 Is it mandatory to provide Indian GST ID in order to continue working on Upwork and what happens to those who don't have GST ID as they are not liable to get registered.

 

Thanks

 

svijay84
Community Member

I would like to get some clarifications as well. From my understanding, Indians need to register for GST only if the annual revenue is above 20,00,000. Since most freelancers won't be making any anywhere close to that, it's likely that they have not registered for GST. So we need clarifications on who needs to submit the GST number and how long do we have to submit it.

jithintv
Community Member

I received an email from upwork asking for GST number and implementing a small fee on it. I'm fine with the fee but I'm not sure of why I need a GST number and how to get one.

 

Any info/help is appreciated!!

AveryO
Community Manager

Hi everyone, 

Thank you for your questions. The Goods and Services Tax is the indirect tax that applies to the supply of most goods and services in India. This includes e-commerce operators who are located or registered in India. At the present time, Upwork is not registered in India and therefore will not assess the GST on transactions there. We are only collecting GST numbers from Upwork users currently. If we as a company are required to register in India in the future and start getting assessed GST, we will let you know.

 

Since we cannot offer tax advice, we suggest you reach out to a trusted tax expert or advisor to learn more about GST and your tax obligations. 

pradeep_k_srvstv
Community Member
Just got this mail from upwork that means are they going to charge 1% of total money freelancer makes on upwork ?????????? So that means if someone is making 6k usd on upwork a month he will have to pay 600 usd ???? This is crazy!!!!! We are already paying taxes to goveremnt the way they want then what is this ?????????? Someone from upwork should post back specifics asap


Hi PRADEEP,
We are writing to let you know that starting in early 2020 we will begin collecting the Indian Goods and Services Tax (GST).

As an e-commerce operator, Upwork will collect 1% on any earnings that are subject to the tax, per Indian law.

While we will follow up with specifics and a more detailed timeline regarding the collection, we do ask that you provide your GST tax id number now, if you have one.

To provide your GST number, click here. GST number, click here.

Important things to remember:
• At this time we are only asking you to provide your GST number (if you have one).
• The 1% tax on Upwork earnings will not be charged until early 2020.
• Once we start collecting GST on the earnings that are subject to withholding, we will remit that tax to the Indian government, as required by law.
If you have questions about the GST or do not currently have a GST number, you may wish to consult with a trusted tax expert or advisor. Upwork cannot provide tax advice.

Thanks in advance for taking the time to provide your GST information. And thanks for using Upwork!
munendraparmar
Community Member

It's 1% that means for $6k it will be $60. And that too will go to Government and not Upwork as we are already saving a lot by being a consultant in taxes! I believe that's a good thing, no?

 

Anyway, this will only be applicable once Upwork register in India which I believe would be very soon.

pradeep_k_srvstv
Community Member

Yep Sorry i calculated it later $60 is fine i guess and that will cover a lot of freelancers like me when i woke up this email immediately prompted at my face so you can well imagine how that extra 0 came after 60 Smiley Very Happy anyways tks for replying back its great to keep this thread active as now upwork is gearing up for GST india so alot of people like me will be jumping here