GST Registration for those earning from FB Google Adsense

With the advent of digitization and online business models, the Indian government has made it mandatory for all business entities to register under the Goods and Services Tax (GST) regime. This includes small and medium business owners and startup founders who earn revenue from Facebook and Google Adsense. However, understanding the GST registration process can be quite confusing and time-consuming. In this article, we have compiled a list of frequently asked questions (FAQs) to help you understand the GST registration process for those earning from FB and Google Adsense.

1. Do I need to register for GST if I am earning money from Facebook and Google Adsense?

Yes, if you are earning revenue from Facebook and Google Adsense, you are required to register for GST. Any business entity that has an annual turnover of more than Rs. 20 lakhs is required to register for GST. If the turnover is below Rs. 20 lakhs, registration is not mandatory. However, if you are selling goods or services outside of the state, you are required to register for GST, regardless of your annual turnover.

2. How do I register for GST?

You can register for GST by visiting the GST portal (www.gst.gov.in). You will need to submit the necessary documents such as PAN card, Aadhaar card, proof of business registration, and bank account details. Once you have submitted the application, you will receive a GST identification number (GSTIN) within seven working days.

3. What is the GST rate for Facebook and Google Adsense earnings?

The GST rate for Facebook and Google Adsense earnings is 18%. This is applicable to all digital services provided by foreign companies to Indian customers.

4. Do I need to pay GST on the entire revenue or just the profit?

You are required to pay GST on the entire revenue earned from Facebook and Google Adsense. This means that if your earnings are Rs. 1 lakh, you will need to pay GST of Rs. 18,000.

5. What is the penalty for not registering for GST?

If you are required to register for GST but fail to do so, you will be liable to pay a penalty of 10% of the tax due or a minimum of Rs. 10,000. In addition, you may also face legal action by the government.

6. When do I need to file my GST returns?

You are required to file your GST returns on a monthly basis. The due date for filing GST returns is the 20th of the following month. For example, if you are filing returns for the month of January, the due date is 20th February.

7. What documents do I need to maintain for GST compliance?

You are required to maintain the following documents for GST compliance:

Invoice and bill of supply
Receipt vouchers
Credit and debit notes
Delivery challans
Payment vouchers
Refund voucher
Receipts issued for advance payments

8. Do I need to pay GST if I am earning revenue from outside India?

If you are earning revenue from outside India and your customer is a resident of India, you are required to pay GST. However, if your customer is a non-resident of India, you are not required to pay GST.

9. What is the threshold limit for registering under the GST composition scheme?

The threshold limit for registering under the GST composition scheme is Rs. 75 lakhs. If your annual turnover is less than Rs. 75 lakhs, you can opt for the composition scheme and pay a lower tax rate of 1% to 5%.

10. Can I claim input tax credit for Facebook and Google Adsense expenses?

No, you cannot claim input tax credit for expenses incurred for Facebook and Google Adsense as these are considered as services provided by foreign companies. Input tax credit can only be claimed for goods and services received within India.

Now that you have a better understanding of the GST registration process for those earning from FB and Google Adsense, it is important to ensure that you comply with the GST regulations to avoid any legal liabilities. Make sure to consult with a tax consultant or a GST expert to help you with the registration and compliance process.