GST billing for indian client

[#1]

I am taking up an Indian client and our discussions are stuck on the billing side. We are both GST registered. Under normal circumstances

1. I would raise a GST invoice to the client.
2. The client would pay the required amount and I will deposit the GST to the govt.

With the contract being through upwork

1.  Will upwork provide the client with a proper GST invoice?
2. If I have bid $100 and GST is 18% what will upwork charge to the client $118 or $100?

[#2]

Stuck with same problem.

[#3]

@vijayvithal / @omkar R, Are you able to get any solution? or We have to fill the GST from our pocket?

[#4]

There is no solution to this issue. I have stopped engaging with potential Indian clients inorder to aviod potential legal hassles.

[#5]

No. Understand the GST,  

[#6]

Upwork will not add GST on behalf of you. You'll have to add whatever may be the tax amount additionally. But at the same time please note that there will be % deduction on that amount too as Upwork's commission. 

[#7]

Have same issue and i am stuck

[#8]

can anyone help on this , we have pay GST for indian clients or not ?

[#9]

Hi Jaydeep,

India’s GST applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in India and have not provided us with a valid GSTIN.

We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. India requires that we collect GST on Upwork services and remit them to your government unless we have a valid GSTIN on file for you. For more information, please check this help article. 

[#10]

No. Client will pay the GST. Understand GST. 

[#11]

Hi VJ,

Under normal circumstances, 

1. You have to raise GST invoice to the Indian client. If you worked for 42 raise amount 49.65, and you cannot keep that extra 7.65 amount to yourself, you have to pay the 7.65 as GST. The inovice should include the proper GST number and registered address of you and client both. See if the invoice need to have IGST. 

2. The client will pay the required amount + GST (42+7.65). He may deduct 10% TDS from 18% GST but tell him to provide TDS certificate in case they pay the TDS from their side. However it will be good if client pays full 18% GST without deducting TDS, in that case you don't need TDS certificate. YES, you must pay GST to the govt on client's behalf.

[#12]

I must pay GST on client's behalf.

Upwork say's all financial transaction should take place through them and they will charge 12-13% on each transaction. i.e. on 18% GST that I am collecting from the client and giving to govt, Upwork will charge me an additional 12%!

So If I work for $100
I bill client for $118 (100 +18%GST)
Upwork takes $15

Govt takes $18
Bank takes $2
Clint pay's his CC provider and additional $8
----
So for a work contracted at $100, Client pays $125, I get $85

The CA's at client's and my end are furious because our GST records do not match and they have to

1. Explain why two indian entities are doing business in USD instead of INR.

2. Play around with exchange rates to not raise flags at GST department

[#13]

In that case, dont deal with any Indian clients in Upwork. Simple. 

[#14]

You are paying client's GST on client's behalf. When client purchases services they pay GST as it is the purchaser's liabiltilt to pay the GST and the seller(you) pays GST on purchaser's behalf. Client will pay GST amount to you and you will pay the same to govt. And same get reverted to the former on return filing. 

[#15]

Hi,

With the current set-up up to the best of my knowledge,

1) Upwork doesn't provide any GST invoices to clients on your behalf. 

2) If you have bid $100 and GST is 18%, Upwork will only charge whatever you have bid, i.e. only $100 and not $118. 

Let me know if you have more questions.

Thank you!

Abhimanyu Bind

Registered GSTP

[#16]

Hi AB

can we file the upwork invoice to GST. But it dosen't have 18% so will it be. deducted from freelancer's income?

[#17]

Hi Shashi,

Upwork invoices are not GST Compliant hence we cannot file them to GST. Thanks.

[#18]

Thanks AB.

But How will be the income justified to portal? 

[#19]

Generate your own GST Compliant invoice and share it with the client. It will solve most of the issues.

[#20]

AB

Hence the same . we cannot generate our own invoice on upwork with 18%

[#21]

But who said to generate invoices on Upwork? generate that in your system and share directly with the client, what's the problem, it is part of legal compliance.

[#22]

Still confusion

[#23]

Prepare a GST Bill at your end as you do in routine cases and share it with the client (subject to the client agreeing to pay GST). 

*That's my knowledge-based opinion and not legal advice.

[#24]

routine cases are  cases under normal circumstances  and its normal practice. The question is about working with Indian clients on Upwork.

[#25]

Absolutely and my answer is according to that only, working through Upwork with Indian clients doesn't make any difference with compliance requirements, you still have to keep the same records which are required in normal cases and you still have to pay taxes by generating a tax invoice. What difficulty are you or all other querist facing with this?