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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
work_connect
Community Member
OK. Thanks. Also are you paying GST under reverse charge for Upwork Fees.
sridhar_orion
Community Member

Dipika,

 

I'm not very sure about the reverse charges. I have registered for GST and have taken LUT. 

work_connect
Community Member
I mean the after Oct (since TDS is getting deducted) how are you dealing
with the Fees which Upwork charges as we have to show invoice at gross value

So are you paying GST (Under reverse charge) on the Upwork fees.
sridhar_orion
Community Member
vigneshhc
Community Member

If I get a GST number and add it here then will upwork generate a invoice with 18% GST (not sure about the percentage) and will this be deducted from my earnings in addition to the the upwork commission and WHT ? Please clarify

kochubei_valeria
Community Member

Hi Vignesh,

 

I'd like to confirm that Upwork is not collecting GST at this time. We are not registered in India and we will not assess the GST on transactions there now. We are collecting GST numbers from Upwork users in India in case they are needed in the future in order to collect the tax. For more information, please see this help article.

You may want to also check this information about Indian TDS.

ankittulsyan
Community Member

Hi Keyur,

You are correct. Turnover to be reported in GST should be INR equivalent of $100. You will have to report $20 (Upwork Charges) as import of services and pay reverse charge on it. You can claim reverse charge as input in the GSTR-3B of the next month.

Other thing that I will recommend is that you withdraw money in USD i.e either via Wire Transfer or PayPal. Reason of this is that as per GST law, in case of export of services assessee is not required to pay GST if the sale amount is received in India in convertible foreign exchange within 6 months of the invoice.

Regards,

CA Ankit Tulsyan

mayurakshikotwal
Community Member

Hi can you please confirm in case of only zero rated service export can ITC claimed on devices like iPads & computers?

ankittulsyan
Community Member

Hi Mayurakshi - Yes, you can claim itc involved in all business related expenses (including ipad and computers) even if you are only providing zero rated services.

 

You will have to make sure that the expense invoice has your company's name & gst number, you are paying the invoice within 180 days and it is appearing in your GSTR-2B of the month in which you want to claim.

 

Regards,

CA Ankit Tulsyan

mayurakshikotwal
Community Member

Hi thank you so much for replying,my CA said i can only claim inputs (as refund in bank) for GST paid on services in india not on purchase of goods like computer equipments,he further said i will need to do domestic billing to claim input credits on computer parts,since i am only doing export of service this way i wont be able to utilise inputs if there is no provision of refund in bank account.