FAQs: GST Registration for those earning from FB Google AdSense

If you are earning money from Facebook or Google AdSense, you must be aware of the Goods and Services Tax (GST) registration and compliance requirements. GST is a revolutionary tax reform in India that has brought transparency and uniformity in the taxation system. The GST applies to businesses and professionals whose annual turnover exceeds a specified threshold limit. In this article, we will answer some of the frequently asked questions regarding GST registration for those earning from FB Google AdSense.

1. Who should register for GST?

The GST registration is mandatory for businesses and professionals whose turnover exceeds Rs. 20 lakhs in a financial year. However, if you are earning from Facebook or Google AdSense, you may have to register for GST even if your turnover is below Rs. 20 lakhs. This is because the GST law considers the aggregate turnover, which includes the income from all sources, while calculating the threshold limit.

2. Do I need to register for GST if I am earning from Facebook or Google AdSense?

If you are earning from Facebook or Google AdSense and your income exceeds Rs. 20 lakhs in a financial year, you must register for GST. However, if your income is below Rs. 20 lakhs, you may not be required to register for GST. But, it is advisable to consult a GST expert to determine your GST liability.

3. How to register for GST?

The GST registration process is online and can be completed in a few simple steps. You need to visit the GST portal and fill in the required details such as your name, PAN, address, email ID, and mobile number. Once you submit the details, the GST officer will verify your application and issue the GST registration certificate.

4. What are the documents required for GST registration?

The following documents are required for GST registration:

1. PAN card

2. Aadhaar card

3. Bank account details

4. Proof of business address

5. Details of the business owner/partner/director

6. Photographs of the business owner/partner/director

5. Do I need to pay GST on my Facebook or Google AdSense earnings?

Yes, you need to pay GST on your Facebook or Google AdSense earnings. The GST rate applicable to online advertisements is 18%. You need to charge GST on the invoice raised to Facebook or Google and deposit the GST amount with the government. Failure to pay GST can attract penalties and fines.

6. Can I claim input tax credit (ITC) on my Facebook or Google AdSense expenses?

Yes, you can claim input tax credit (ITC) on your Facebook or Google AdSense expenses. ITC is the credit available to a GST registered person for the tax paid on the purchase of goods and services used in the course of business. You can claim ITC on the GST paid on the expenses related to online advertisements.

7. What if I fail to register for GST?

If you are required to register for GST and fail to do so, you may be liable to pay a penalty of up to 10% of the tax due or Rs. 10,000, whichever is higher. The penalty may increase to 100% of the tax due if the non-compliance is intentional.

Conclusion

Thus, if you are earning from Facebook or Google AdSense, you must register for GST and comply with the GST law. The GST law has strict penalties for non-compliance, and it is advisable to consult a GST expert to ensure that you are complying with the GST law.