About GST in India

[padak08]

My annual turnover not exceed twenty lakhs . So, I want to know why are deduct gst from november month ? 

If any option for refunt deducted gst?

[rekasesh]

This should clarify. They are charging for services they rendered like service fees, membership fees and connects much like in local shops or restaurants. https://community.upwork.com/t5/Freelancers/GST-from-exempted-Indian-taxpayer/m-p/1468842/highlight/...

[padak08]

Means this GST amount get back if when I  Apply ITR return file ??

[rekasesh]

I don't think so. I am not well versed with GST rules but you generally need a GST account to claim reverse credit. 

So a normal freelancer account will only get you the refund for only the 1% TDS, not the GST. 

Opening a GST account is not worth the trouble for these small amounts due to paperwork and numerous bookkeeping rules.

Think of it as the money you never get back after grocery buying, shopping in a mall or eating out. 

[ArjayM]

Hi Paramita,

Unfortunately, we remit that money directly to the Indian government and will not be able to refund it. You may be able to claim a credit with your tax authority for what you paid.

However, If you provide a valid GSTIN to Upwork, we will not have to collect this tax from you. You can enter or edit your GSTIN in your account’s Settings > Tax Information.

Furthermore, we recommend that you consult with your government’s tax authority or tax advisor for more information.

[padak08]

I think GST not required if yearly turn over less than 20 lakhs. But I suddenly check GST amount deduct from my every project (my yearly turnover less than 20 lakhs). I dont understand that why deduct GST amount because my annual turnover less than 20 lakhs ?

[759e32fa]

Hi Paramita,

India now requires Upwork to collect goods and services tax (GST) and remit it to India’s government unless we have a valid Goods and Services Tax Identification Number (GSTIN) on file for you. GST is a tax on goods or services, including our services to you, and “remit” means to send money for a payment.
 
In India, the GST rate is 18% of the cost of the service being taxed. For example, if you pay $100 USD in freelancer service fees, you will pay $18 in tax, for a total of $118. You’ll see the estimated amount of tax on your invoices and Transaction History.
 
India does not offer any exemptions from GST that are applicable to Upwork’s services, but you can avoid GST charges being collected by Upwork on your behalf by providing a valid GSTIN.
 
If you provide a valid GSTIN to Upwork, we will not have to collect this tax from you. You can enter or edit your GSTIN in your account’s Settings > Tax Information.