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GST for freelancers/agencies in India

anupshinde17
Active Member
Anup S Member Since: May 3, 2016
111 of 120

Can somebody from Upwork legal answer this?

Based on Keyur's case:

Not sure how we can show $20 as an expense . The money never came in our account and Upwork is not a bank. If we claim these as expenses, it cannot be legally proven. Upwork's transaction history and invoice will not stand legal. (I know PayPal's reports don't). This is forcing freelancers to over-report their income.

 

Freelancers - Has anybody verfied TDS deducted by Upwork in 26AS?

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
112 of 120

Keyur and Anup,

 

I encourage you to refer to my reply here. Thank you!

~ Valeria
Upwork
vigneshhc
Active Member
Vignesh C Member Since: Oct 26, 2018
113 of 120

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 Manager
Valeria K Community Manager Member Since: Mar 6, 2014
114 of 120

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.

~ Valeria
Upwork
vigneshhc
Active Member
Vignesh C Member Since: Oct 26, 2018
115 of 120

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.

ankittulsyan
Active Member
Ankit T Member Since: Jul 23, 2017
116 of 120

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

honeyv
Ace Contributor
Honey V Member Since: Aug 28, 2015
117 of 120

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

mayurakshikotwal
Active Member
Mayurakshi K Member Since: Mar 6, 2021
118 of 120

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
Active Member
Surendhiran S Member Since: Jun 14, 2021
119 of 120

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
Active Member
Biju J Member Since: Apr 7, 2015
120 of 120
No need to register for GSTIN inorder to withdraw money from upwork.
You need to register your PAN number with upwork.