I'm a blogger and basically earns money through Affiliate Marketing and AdSense and receive all the earning in Dollars after the foreign exchange. I called to GST helpline and tell them my situation and they said you'll to register for GST, and will need to pay GST under the RCM because you're providing services to the none-registered person.
OK, If I registered for GST then how I will pay GST to the government because If I generate invoices in Dollars, And affiliate earning receive after the foreign exchange then it will not an actual amount which I have invoiced.
eg: I have received $50 affiliate commission from a US based affiliate marketing company. and after the foreign exchange, it will be converted to the value of $44 I also checked GST portal do not accept earning report in Dollars then on which amount I'll need to pay GST.
I heard Export is a zero rated supply but you'll need to pay 18% GST on the earning then after will need the claim for zero rated supply. But I don't understand what procedure I will need to follow. GST helpline helpless on this matter they said you'll need to register but they don't know what is the procedure.
Can anyone help me? What to do?
For everyone making zero rated supplies registration is required.
You will have to register under GST.
Government has to come with a solution for online services. It is not possible in case of bloggers to follow the procedure which is provided by government.
As per the procedure, you have to pay tax at 18% on income you received and claim refund of it.
Also the tax has to be paid before making supply, how it is possible.
Second option is to have a bond/LTU with bank guarantee. You may not understand these terms well, but let me tell you that the current GST provisions are not at all practical for your type of suppliers.
This is another issue that you have to take registration and pay tax at the time of filing return.
Tips for you:
- Register under GST
- Pay tax at the time of filing return
- Collect Foreign Inward Remittance Certificate from your bank
- File for refund of tax paid
Now the practical challenge is on what basis the refund will be given, which documents are required remains a mystery.
Government has to answer the practical difficulties of service providers.
Thank you for your reply, can you help me to understand? on which amount I'll need to calculate GST, Suppose AdSense issued me $512.95 dollars but bank deducts $5 dollars (don't know which bank is deducting this money.) and my bank then converts this money 507.95@62.6+ 57 GST charge and I received the Rupees 31740.43 into my account. Then on which amount I will need to pay GST on $512.95X18% or 31740.43X18%. I'm totally confused. One another thing, I have not registered yet and so I have not filed GSTR 3B and I know I will not able to file GSTR 1 because If I do register today then it takes some time to get GSTIN.
So there will be any problem if I'll file these returns later. Actually, I have only received AdSense earning in July and August and did not receive anything. Did you have any detailed article on this how to file returns for Adsense or affiliate earning and claim the refund? Thanks in Advanced!
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