GST for freelancers/agencies in India

[Vladimir G]

Hi all,

Please note that I've closed the previous main thread discussing the Indian Goods and Services Tax (GST) and moved recent posts to this thread, in order to streamline the discussion and more efficiently communicate the information related to the recent update.

Hi Pradeep,

Thanks for your questions. Upwork is currently working with its tax advisors to determine under what circumstances GST must be collected on transactions between Upwork and its users. If it is determined that tax is to be collected, we will contact our users in India to provide an explanation of what transactions will be assessed and the date any collection will start. Since we cannot offer tax advice, we suggest you reach out to a trusted tax expert or advisor to learn more about GST and your tax obligations.

[Saumya s]

Is it mandatory to provide GSTIN ( even if we don't have one) to withdraw our earnings  ?

[Bojan S]

Hi Saumya,

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. Please check this help article for more information. 

[Shubham K]

Hi Saumya,

You shall be able to withdraw your earnings without GSTIN too (via PayPal account). However in many cases PayPal has also started to mandatorily ask for a GSTIN for foreign receipts. Initial withdrawals should not be a problem though.

However a better approach would be to get a GST number, apply for LUT and get your export of service returns filed. This way you will be compliant and expect no troubles in future. This will also establish your business as a formal entity in government records.

Happy to help further, Thanks!

[CS Amrut L]

Is it mandatory to levy GST when payment is received in INR (i.e LFT) from upwork

[Tamal M]

> As per my knowledge GST is for business accounts. I person cant have a GST number.

Any professionals or business entity with valid PAN can register for GST. As per new rule, you must register for GST if your gross receipt is above ₹20L. 

[Drupal D]

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

Do we really need this?

[Aleksandar D]

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.

[Subrat P]

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

[Subrat P]

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

Thank you