X started sharing revenue with users. Many Indian X users have received money from X.
Now questions are:
- Whether GST is to be paid on money received from X (TWITTER)?
- Income tax is to be paid on income received from X (TWITTER)?
GST ON MONEY RECEIVED FROM X
GST is charged when a service is provided in India and money is received in India. Export of services are zero rated supplies (GST is applicable but at 0%).
Now let's understand what is zero rated service.
As per section 16 of IGST definition of zero rates supply is:
16. (1) “zero rated supply” means any of the following supplies of goods or services
or both, namely:––
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
First point to be checked whether money is received from TWITTER India or Twitter foreign company. It seems money is received from foreign company since it is in USD.
If money is received from Indian Twitter company, then GST is applicable and needs to be paid.
However, if money is received from X (TWITTER) foreign unit and in USD GST is to be charged at 0%. People still need to register under GST, but no need to pay any GST.
On other hand, income tax is to be paid on all incomes unless specifically exempted. Since money received is income, income tax has to be paid reagardless of location of payee.
| Latest response: 03/09/23 | Sort by