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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
munendraparmar
Community Member

Totally understand, If there was an extra 0, I would have been jumping too. Smiley Happy.

 

Also, I think full details are yet to come out. This GST amount should be on Upwork services sliding fee (20%, 10%, 5%) and not on total earning. Once Upwork register in India, they have to pay taxes to the Indian Government based on what they earn from us in fees. For more details, you can search for Australia and EU GST thread.

 

Well, I am also waiting for full details as of now.

nabhassy
Community Member

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.

nabhassy
Community Member

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?

arulk8smx
Community Member

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.

samrat3
Community Member

 

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.

 

mandar_gharat
Community Member

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

nabhassy
Community Member

But GST is applicable to only services/goods sold to Indian customers and the rates are 

0%, 5%, 12%, 18% and 28%. and colected from customer

These are applicable only if annual turn over is over 40 Lakh

 

samrat3
Community Member

Regarding exemption of INR 20 lakh from GST registeraton- You are correct.

I've also sent a message regarding this to one of the Upwork employees. Looking forward to their reply.

 

nabhassy
Community Member

20 has been increased to 40 this year

samrat3
Community Member

Yes, you are correct.