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GST for freelancers/agencies in India

pravin_310
Active Member
Pravin S Member Since: Mar 27, 2016
61 of 105

Good thread, I checked with my CA and the GST limit is applicable for anyone with income >20L on services

Note: 40L is for good sold, not services

 

so if you are liable, do register and give your number to upwork, otherwise we can wait and watch what happens

 

 

sridhar_orion
Ace Contributor
Sridhar J Member Since: Sep 26, 2015
62 of 105

I did spoke to my CA and as far as I know, you need a GST no if you do interstate service business even if your turnover is less than 20 lacs.  As most of the business we do in Upwork is for foriegn clients, you need to register for GST, even if your turnover is less than 20 lacs.  As most of the clinets we serve are from foreign countires, you should only use Wire Transfer to withdraw money from Upwork. When you use wire transfer, you get FIRC as a proof that you are remiting your income in USD.

 

If you are using LFT to withdraw money from your Upwork account, there is very little chance that you can prove your income is for export services.  And you are liable to pay GST in 18% or 28% slab based on the service you provide.

 

Now, when we provide our GST number to Upwork and as they mention, if they deduct 1% from our billing and deposit to Indian government as GST collection with our GST numbers, we will be considered as people who are  evading GST and may be fined.

 

I request Upwork to  explain this in detail as this move can possibly make several freelancers as tax evaders.

anupshinde17
Active Member
Anup S Member Since: May 3, 2016
63 of 105

Sridhar J wrote:

I did spoke to my CA and as far as I know, you need a GST no if you do interstate service business even if your turnover is less than 20 lacs. 


 

@Sridhar J , No offense, but I think you need to fire your CA. Did you speak with him/her recently? Either you CA does not know about the policy changes from 2 years ago - or is just unethical and trying to make money with unnecessary documentation

 

This is from an official source On 6th October, 2017

"It has now been decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services. "

Official Source: http://www.cbic.gov.in/resources//htdocs-cbec/gst/20171006_PressRelease_22ndGSTCMeeting.pdf

 

It was true when GST was first introduced, but within approx 6-7 months the policy change was known and clear to most CAs

 

Please do cite the source of information if you find something contradictory to the above.

vishalmaihdwan
Active Member
Vishal M Member Since: Jun 2, 2020
64 of 105

Hey Anup Bhai, am not that active on upwork, but am getting on this thread after searching FIRC certificate standard Charted Bank. Am also affiliater, i recived approx 40k usd from my network, they did me Lft through Standard Charted Bank Mumbai, Recieved money through NEFT in my bank account , and i have to withdarw 1 lakh usd, am going mad over this 18% gst & after than income tax that's too much bhai , please help how to deal with this. how to save 18% gst. this is the page where i landed first - https://community.upwork.com/t5/Freelancers/FIRC-certificate-from-Upwork/td-p/376583

you or angad S please reply me & help me with best it seems u already face this & delt with

ravi_iitian
Community Guru
Ravindra B Member Since: Sep 27, 2015
65 of 105

Sridhar J wrote:

 

If you are using LFT to withdraw money from your Upwork account, there is very little chance that you can prove your income is for export services. 


First, when we use LFT to withdraw money from our Upwork account, the bank transaction clearly shows the money has come from Upwork.

 

Second, Upwork does provide a certificate of earning that shows our earnings in USD.

 

Reports > Certificate of Earnings

 

"Certa bonum certamen"
ankit_rathi
Active Member
Ankit R Member Since: Feb 9, 2020
66 of 105
You might have received wrong advice from CA there is amendment in this regards have attached it .

It is not required GST no for interstate supply below 20L
a_sri_ram
Active Member
Dharmender Yadav A Member Since: Apr 19, 2020
67 of 105

I am a freelancer from India.Can I put my GSTIN under "I am not registered under GST"?Will this stop me from withdrawing my funds.Please reply

g_vasilevski
Moderator
Goran V Moderator Member Since: Mar 24, 2017
68 of 105

Hi Dharmender,

 

Did you mean that you don't have a GST number at the moment? 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. Thank you.


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sunnyjaryal7
Active Member
Amit K Member Since: Nov 12, 2016
69 of 105

Is it compulsory to provide GSTIN details for Indian freelancers? 

vladag
Community Manager
Vladimir G Community Manager Member Since: Oct 31, 2014
70 of 105

Hi Amit,

 

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. You can find more information in the previous conversation on this announcement thread and in this Help article.

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