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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
shahyash84
Community Member
Hi Anup, thanks for the revert. I agree to both the options but I think second option is better since I have always abided by law throughout my life till now and would like to continue. I am going to pay GST on the complete amount (Prior to deduction by Upwork) by assuming that the gross amount includes GST and will also issue invoice with GST to the client hence I don't think authority will have any issue i.e. In other words for this purpose I am treating upwork like Paypal who is collecting money on behalf of me and deducting charges for that collection hence that doesn't have any effect on GST payment amount. This is only going to give loss to me hence I agree that working with Indian clients is a loss making proposition. I have learnt the lesson to ask client Upfront GST over and above the contract amount before proceeding
drupaldev92
Community Member

I have the same question, I am also freelancer, I don't have GSTIN, what to do?

Do we really need this?

AleksandarD
Community Manager

Hi there,

 

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

 

Thank you.

sridhar_orion
Community Member

Hi,

 

I recently had a call with my bank (HDFC), as they are updating their system, they enquired more about the exact services we offer. During the conversation, they also enquired if we could produce any work relation document between Upwork and us. Similar to Certificate of Earnings.

 

As we are an agency, we do not have the option to download certification of earnings.

 

While searching the Upwork community, I came across this thread https://community.upwork.com/t5/Freelancers/India-GST/td-p/361564/page/15. And there it has mentioned that Upwork will assist by providing signing the confirmation of services document.

 

I had a chat with the Upwork customer care regarding this, but they said that they do not provide any such document and the confirmation of services document is only provided for EU nations.

 

I would like to if any freelancer or agency has come across this issue. Are they any supportive documents that can be provided by Upwork would prove that we provide our service in Upwork.

NikolaS
Moderator

Hi Sridhar,

 

I am sorry for the inconvenience this has caused. I shared your report with our team and one of our agents already reached out to you via a support ticket to assist you further. You can access your ticket on this page.

 

Thank you,

sridhar_orion
Community Member

Nikola,

 

Thanks for the timely response and I really appreciate it. I have received necessary information via support ticket and I will follow up with the agent

 

Thanks,

Sridhar

amaneetbrar
Community Member

Hello Shubham ,

 

Greetings 

 

We were raising invoice on Net Amount to be received from Upwork after deducting their service fees and membership fees.
Example : Gross Amount $ 1000, Service Fees, $ 80, Membership Fees $ 20 then invoice amount $1000 - $ 80 - $ 20 = $ 900
 
Now, from 1st October, 2020 Upwork has started deducting TDS ($ 7.5) from Gross Amount ($ 1000). And Gross Amount ($ 1000) will be reported in our Form 26AS. Now, we have to raise invoice for Gross Amount ($ 1000). 
 
Now, do we need to show Service Fees ($ 80) and Membership Fees ($ 20) as import and pay IGST ($ 18) on reverse charge or is there any other way.

 

Please share your inputs ,

 

Thanks

 

subratparida
Community Member

Received a notice from Service Tax office for the Financial year 2015-16 for not paying service tax. As we export software services and receive money in foriegn currency so service tax is exempted. I thought submitting the FIRC certificate would be enough but the service tax officer asking to submit Export of Software Service certificate from STPI (Software Technology Parks of India).  

 

I've never done registration in STPI. And also I always transfer money through Paypal. Looks like Paypal India also submit Softex form (from STPI)  to RBI that is mentioned in Paypal Purpose code.. 

 

Does anyone have any experience on this issue? How could I handle it? 

 

Thank you

subratparida
Community Member

I found one accountant in my town and he is going to help me on this issue.

 

Thank you

bbhadwal
Community Member

Hi Shubham,  If I am an Agency on Upwork, and I spend 5000 USD every month from the same account that I receive money from foreign clients, what are the GST norms.  I don't pay GST on services, however, do I need to pay for the import of services from Upwork.