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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
aslams
Community Member

Upwork should pay that from fees/earning that they collect from us. They planning to charge extra 1% apart from regular cut ?

petra_r
Community Member

Samrat, You guys still pay GST on stuff you buy. Such as things in shops etc.

Upwork only charges the GST on what they sell to you- such as the Service fee and membership and connects (the same way that they charge VAT for European freelancers and the Australian equivalent to Australian freelancers) - In this scenario you are the customer and Upwork the vendor.

 

It has nothing to do with GST registration which would then mean you charge your clients from India, it is purely Upwork collecting the GST for what you buy from Upwork (service fee and membership and Connects...)

 

 

Anil C wrote:

But GST is applicable to only services/goods sold to Indian customers

 


You ARE an Indian customer and Upwork sells you services. (service fee / membership / connects

 

madgulkar
Community Member

Yes we need a detailed explanation from Upwork on this issue and from GST/Tax consultant in india.Most of the freelancers are not registered under GSTIN as we pay income tax instead.


1) Will GSTIN number will be mandatory to work on Upwork or it will be optional?.

2) Is 1% additional deduction by upwork is applicable for all as we have slab of annual turnover 20L/40L to be  eligible to register for GST.

3) Does Upwork Freelancer will be liable to register for GSTIN?,99% clients on upwork are outside india, though we receive payment from Upwork not client directly.We cannot charge our foreign clients GST.So main question,is any freelancer having all clients outside india required to register under GST and need to submit gst returns considaring eligibility slabs provided by Indian GST law 20L/40L?.

4) If we register for GSTIN number (currently cancellation not possible) then ideally GST rate is 18% for freelancers and we have to fill 37 reurns in year,so its not easy change,all this money will go from our pocket/hard earned money.

So a brainstorming is required on this issue.

madgulkar
Community Member

Hi Petra,

The email reads as follow:

Do you mean that upwork is not going to charge 1% to each and every payment we receive but only on connects and monthly fee?

 

 

 

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.

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!
nabhassy
Community Member

If GST is on your Service Fee, your Indian GST registration number has to be mentioned and a receipt has to be given to the customer (Freelancer)

(Freelancers do not need have GST number as they are customers)

The email asks for GST registration number of customers (Freelancer) which is not applicable here.

petra_r
Community Member

Anil C wrote:

If GST is on your Service Fee, your Indian GST registration number has to be mentioned and a receipt has to be given to the customer (Freelancer)

(Freelancers do not need have GST number as they are customers)

The email asks for GST registration number of customers (Freelancer) which is not applicable here.


Same with European freelancers and VAT - If the freelancer is VAT registered, Upwork does not charge the VAT on the services they sell to us as freelancers.

The receipts for the VAT appear in the transaction history.

dttsaswata
Community Member

Its not mandatory. The idea is: If you are registered under GST in India, provide your gstin. If you are not registered no need to provide number, just mention you are not registered under gst.

pradeep_k_srvstv
Community Member
Yes this is what it looks like but maybe better to wait for specifics as of now they charge gst extra from australian freelancers as well google upwork gst australia
kirti-umrigar
Community Member

Anil C wrote:

If GST is on your Service Fee, your Indian GST registration number has to be mentioned and a receipt has to be given to the customer (Freelancer)

(Freelancers do not need have GST number as they are customers)

The email asks for GST registration number of customers (Freelancer) which is not applicable here.


Exactly.!

mukherjeetamal
Community Member

I've surrendered (filed REG-16) my GSTIN and it's under process for months now. Do I still have to add it in Upwork?