Why was I charged GST.

[865e9f5d]

I was charged with GST. Before I was not charged with any GST. Why is it so NOW? I had already provided my PAN Card details. 

[NikolaS]

Hi Nadeem,

Thank you for reaching out to us. India 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.

I checked and it looks like you selected "I don't have a GSTIN." on your account. If you do not provide a valid GSTIN, we are required to charge you GST and remit it to the government of India.

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. We’ll check whether the GSTIN you provide is valid and email you when we have confirmed it is valid, which usually happens within a few days. You can find more information in this help article. 

[865e9f5d]

Hi Nikola. Appreciate your response. But in India an individual does not have to apply for GST. Also the slab for charging GST is when annual turnover is above 20 Lakh rupees. How am I supposed to be charged with GST ?

[LuiggiR]

Nadeem, as Nikola mentioned, if you don't provide a GSTIN, Upwork must charge GST and remit it to India's government. We recommend that you consult a local tax advisor for more information on obtaining your GSTIN.

[tony2107]

Hello Nikola,

I think Upwork made a mistake about understanding GST,

GST is applicable on exports service from India. However, exports are treated as zero-rated supplies under GST. You only have to pay GST if your client is indian. If client is Indian then your GST will be 18%.

As already mentioned by people here, GST is not needed unless the yearly transaction goes above 20 Lacs Rupees. so individual can submit thier PAN. 

Thank You!

Parth

[hitesh29889]

Same thing happend to me as well.

For last 2 weeks I am getting charged with GST.

For last 5 years I am using upwork and never get this GST charges.

I have already added my PAN details, which is only thing required for individual freelancers.

GST is only required for an agency I think.

[rekasesh]

They are charging it on the services they provide like fees, membership and connects.

This is much like the GST we pay as consumers on groceries, hair cuts, movie tickets and more.

[33d4fc38]

Why I am charged with GST? I already provided my PAN number to Upwork and for individuals, GST is not needed unless the yearly transaction goes above 20 Lacs Rupees. Please resolve this issue

[JoanneP]

Hi Purnima,

India 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.

Upon checking your account, it seems like you selected "I don't have a GSTIN." on your account. If you do not provide a valid GSTIN, Upwork is required to charge you GST and remit it to the government of India.

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. We’ll check whether the GSTIN you provide is valid and email you when we have confirmed it is valid, which usually happens within a few days. You can find more information in this help article. 

[abhishek-srvs]

The GST tax rate is 18%, what is the formula for charging 1.8% GST and remit to Govt of India? Also since GSTIN is available only when you register for GST in India and one doesn't need to register until his annual income exceed Rs 20 lac in a fiscal year. Do you consider checking the total income for a freelancer in a fiscal year before deducting GST. Is this some sort of GST deducted at source like TDS that we can refund at the time of filing of ITR? You cannot just start a process like this without properly informing the freelancers about the procedures.

[abhishek-srvs]

The GST tax rate is 18%, what is the formula for charging 1.8% GST and remit to Govt of India? Also since GSTIN is available only when you register for GST in India and one doesn't need to register until his annual income exceed Rs 20 lac in a fiscal year. Do you consider checking the total income for a freelancer in a fiscal year before deducting GST. Is this some sort of GST deducted at source like TDS that we can refund at the time of filing of ITR. You have initiated this process of tax deduction without informing freelancers about the entire procedure that we have to follow. Isn't explanation of this your liability.

[dataextract]

There is a misunderstanding here it seems.

Upwork is not charging GST on your income. They are charging GST on the service fee they are charging you. Also if you buy connects from Upwork, for that also they are charging GST.

Meaning that, if you get $100 from a client, you are paying $10 as a service fee to Upwok. (10% commission). For this $10, they are charging 18% GST which is $1.8

Apart from that they are charing withholding tax too for Indian users.

https://support.upwork.com/hc/en-us/articles/360044709894-Indian-Tax-Deducted-at-Source-TDS-or-Withh...

[abhishek-srvs]

Thanks for clarifying. It means that this 18% GST on service tax is an additional tax that freelancers have to bear. What is the purpose of GSTIN here and why they don't charge GST if we provide GSTIN?