Nowadays there is confusion among bloggers / internet marketers / designers / developers / providers regarding applicability of GST on their earning from outside India including AdSense / advertisement Income.
Most bloggers receiving payments from Google Singapore / Facebook USA, which is considered as Export of Services. In Previous tax regime, exporters of Services were not required to pay service tax or submit any Bond or Letter of Undertaking before or after export of services. Further, they were not required to pay any Tax on such Export of Services before or after exports are affected and to claim refund of the same later.
But with the introduction of Rule 96A in Central Goods and Services Tax (GST) Rules, 2017, Tax Treatment of Export under GST Regime is not as same as it was earlier. GST Regime and has created additional documentation and procedural requirements.
With the Introduction of Rule 96A Exporters can export Goods &Services by Paying IGST on the same and can claim refund after paying the same or can Export the same without payment of IGST under Undertaking or Bond.
Now what this means for Bloggers / Online Marketer / Designers / Developers or Internet service providers who are receiving money from outside India
As per norm, they first need to pay GST @ 18% and then claim refund under Zero rated supply by providing proof of payments under GST. There is NO GST on foreign Incomes, only need to have proper paper of proof of Income.
Query: If my Turnover is less then 20 lakh
Answer: Under GST regime, even if your turnover is less then 20 Lakh Rs. And you are doing Export of services or serving outside of your state you must register under GST. For export of services you need to pay IGST and claim it back on realization of payments by providing supporting documents (FICR document, which is provided by all banks when you receive money is foreign currency)
There is option of providing a Bond / Bank Guaranty / Letter of undertaking, in which you may need to pay GST every time, but simply it can be covered with respective method with proper document submissions.
Query: What is FIRC, how to get that.
Answer: FIRC, Foreign Inward Remittance Certificate. For each incoming transaction one Transaction key generated which is provided in this. All Indian banking institutes providing the same at time of money received via mail / physical. If you are not getting, coordinate with your bank.
Query: I am getting payments from PayPal / Payoneer, what I need to do
Answer: You need to ask paypal / payoneer to provide you FIRC document, here problem is both of these companies charges for the same.
Query: When can I claim refund
Answer: Refund can be claimed after payment realisation. So for most Internet service provider, generally they receive payment immediately after invoice, so with filling GST immediate after that they can file for a refund with FICR document.
Query: If I am individual then also I have to register ?
Answer: Yes, If you are receiving money from outside India, you have to register in GSTN with your individual PAN Card and comply the taxes.