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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
ankittulsyan
Community Member

You can claim refund of input (on both goods and services) in case of export of services. You will have to make sure that all the sale invoices were cleared within 180 days in foreign convetibe currency.  

mayurakshikotwal
Community Member

okay thank you

mayurakshikotwal
Community Member

My  CA is still of opinion that  "ITC refund on zero rated export under LUT cannot be claimed on capital goods such as computers",and on searching on youtube and google everyone is of same opinion,very confused.

honeyv
Community Member

I think this GST thing is not applicable to most of guys here - as mostly all individuals are freelancers and threshold limit range which comes under GST is not applicable , though it can be thought to apply this thing on companies / agencies but it's not yet decided yet which compnies whil come under thing I think it's abstract for time being there.
But we're waiting for future updates on this - and I think this notification should be on mute for freelancers who don't come under GST prerequisites. And no need for them to provide any details over here... Let me know your thoughts

keyur2020
Community Member

Hi Anup, 

 

I am registered under Indian GST and have GSTIN.

As we know from 1st Oct,2020 Upwork charging TDS on Gross amount client pays.

Also we are paying service fees in USD and get separate invoice from transaction history section , do we need to pay GST on Service fees and membership fees paid by us to Upwork?

 

Before TDS , accounting was done as net off from what client pays and what we pay to upwork.

Example:

Before 1st Oct,2020 if client pays $100 , Upwork deduct $20 and we book revenue of $80.

 

Now after 1st Oct 2020 , Upwork charges TDS on Gross amount which is $100 that means , Indian Govt will get the reporting of income from Upwork as Mr. X was paid $100 and for that , TDS was charged $0.75.

 

Based on what upwork will show to Indian Govt as our turnover would be $100 coz they have deducted TDS on that. If we net off the charges paid on upwork then our turn over would be $80 which will be a mismatch in records. So if we show $100 as our turnover and shows $20 paid to upwork as Fees , it should be considered as import of services and will be liable to pay 18% GST on the same.

 

This is my understanding. Can you anyone please help if this accounting is correct or not?

 

If I am getting revenue from Upwork that is export of services then if I pay service fees to them is HOW NOT import?

 

PS I am paying 18% GST since 1st Oct,2021 on Services Fees and Membership as well as connects expenses. Kindly share refund process as well.

 

**Edited for Community Guidelines**

vigneshhc
Community Member

If I register under GST and even though Upwork doesn't have GST as of now. Can you tell me how I can file GST using your invoice ? Or if export of services doesn't come under GST can I use this OIDAR (Online Information and Database Access and Retrieval) clause to show it as a zero rated service ? as almost all works for clients outside India.

mayurakshikotwal
Community Member

Hi upwork and other platforms are not issuing invoice of 20% deduction,in this case how can we show 20% as import of service?

suren904
Community Member

Hi fellow freelancers, I would love it if you guys could help me.
I have a lot of doubts regarding the GST identification number.
In general, I want to know everything about freelancer tax in India, if anyone could guide me to an article or consolidate everything a newbie should know about tax, It would be amazing.

But if that's not possible, I kindly request you to answer these questions at least.
Do I need to have a GSTIN in order to withdraw from Upwork?
Can I just continue to do freelancing without registering for GST?
If no, after registering, will I owe tax to the Indian government even my income is less than 20 lakhs.

Kindly help me with these questions, It's so confusing. I've searched the internet for days to find the answer but in vain. 
Hope some experienced Indian freelancers who have gone through all this could help newbies like me.

Thanks in advance.

bijujx0a
Community Member
No need to register for GSTIN inorder to withdraw money from upwork.
You need to register your PAN number with upwork.
princekapoor
Community Member

As pr recent guidelines by Indian Govt., we have to pay equalization levy on any amount paid to non Indian entity( In this case, Upwork).

Since we freelancers/agencies owners pay service fee to Upwork, do we also have to pay 6% levy on upwork fees?