GST for freelancers/agencies in India

Anil C · Jan 13, 2020 09:41:22 PM

But GST is applicable to only services/goods sold to Indian customers and the rates are

0%, 5%, 12%, 18% and 28%. and colected from customer

These are applicable only if annual turn over is over 40 Lakh

Samrat C · Jan 13, 2020 09:45:50 PM

Regarding exemption of INR 20 lakh from GST registeraton- You are correct.

I've also sent a message regarding this to one of the Upwork employees. Looking forward to their reply.

Anil C · Jan 13, 2020 09:48:10 PM

20 has been increased to 40 this year

Samrat C · Jan 13, 2020 09:49:49 PM

Yes, you are correct.

Petra R · Jan 13, 2020 09:54:41 PM

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

Sumitra M · Jan 13, 2020 10:04:10 PM

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!

Anil C · Jan 13, 2020 10:06:57 PM

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 · Jan 13, 2020 10:42:45 PM

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.

Kirti U · Jan 13, 2020 11:34:45 PM

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.!

Tarun M · Jan 14, 2020 09:23:04 AM

A customer do not need to have a GST to buy any Goods or Services.

only Seller (whose turnover cross 4 million rupee) are obliged to register for a GST number