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Re: Upwork collecting GST from Indian Freelancers

Moderator
Valeria K Moderator Member Since: Mar 6, 2014
1 of 52

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.

~ Valeria
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Ace Contributor
Rana Pankaj K Member Since: Apr 21, 2016
2 of 52

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

 

Active Member
Vijay S Member Since: Feb 28, 2015
3 of 52

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.

Ace Contributor
Jithin T Member Since: Oct 2, 2018
4 of 52

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!!

Moderator
Avery O Moderator Member Since: Nov 23, 2015
5 of 52

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. 


-Avery
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Ace Contributor
Mandar G Member Since: Mar 2, 2017
6 of 52

Hi Avery and everyone,

 

I am a freelancer from India and i have received the similar mail from Upwork for providing GST number like other freelancers, Here in india GST tax exemption limit is Rs 40 lakh for one financial year. As many freelancer including me dont earn that much of money in one financial year so i havent register with GST and i guess many are not registered too. I would like to know that is it mandatory to provide GST number despite not applicable to pay GST tax?

 

Regards,

Mandar

Ace Contributor
Anil C Member Since: Oct 23, 2015
7 of 52

I also got email that 1% of every payment will be taken and paid to Indian government

 

Indian GST rates are 0%, 5%, 12%, 18% and 28%

 

1) How the 1% is taken as it is not in the Indian GST rate list

2) In India, GST is collected from client/consumer, not from (service provider/manufacturer)

3) Do foreign clients come under Indian GST law?

Ace Contributor
Anil C Member Since: Oct 23, 2015
8 of 52

I got an email from upwork that Upwork will be collecting 1% GST on any earnings and will pay it to Indian government.

 

Indian GST rates are 0%, 5%, 12%, 18% and 28%

 

1) I would like to know how the 1% is taken as it is not in the Indian GST rate list

2) In India, GST is collected from client/consumer, not from (service provider/manufacturer)

3) Do foreign clients come under Indian GST law?

 

Please see the attached email.

Please clarify.

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Ace Contributor
Arul R Member Since: Sep 8, 2016
9 of 52

A freelancer only has to pay Income tax in India. Plus there is no need to even register for GST for most freelancers as there is exemption upto 40 lakh rupees..

 

is upwork offloading some of their tax burden on to Indian freelancers.

Community Guru
Samrat C Member Since: Jun 1, 2016
10 of 52

 

As per the email that I too received from Upwork, they are most likely to remit that taxable amount to the Indian Government. Please correct me if I'm wrong.

 

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