GST on google Adsense publisher, GST on Direct online advertising
GST on google Adsense publisher: GST on online advertisements and impact on website publishers. Thousands of people write blogs, write articles, create sites on various topics. One common practice is to use the Google advertisement program Adsense to earn income from the traffic generated on their site. The specific question for this post is “Whether the earning of revenue through Adsense liable for GST ?” In my considered opinion, answer is NO. check out how?
In these days, online advertising has grown leaps and bounds over the decade. In this regard, Google has introduced new ad technology i.e called ‘Google AdSense’. The said technology can be broadly classified in two types. One is ‘AdSense for Search’, where the said technology is designed to enable website publishers who want to display targeted text, video or image advertisements on their website pages and earn money when site visitors view or click the ads. The another type is ‘AdSense for Content’ where ads are placed on content shared in Google online platforms like Blogger and You Tube and Google share a portion of revenue with the owners of the content. in this article you may check applicability of GST on google Adsense publishers.
As a blogger or website publisher, you make most of revenue from following online activities:
- By displaying online advertisements of client pitched directly or through 3rd parties such as Google adsense and other ad-networks.
- By selling E-books directly or by listing them on online portals such as Amazon, Flipkart etc.
- By affiliate marketing, and
- By sponsored posts or native advertisement.
GST on google Adsense publisher
Under CGST Act, 2017 and IGST Act, 2017 following 2 terms are defined which covers almost all services provided through internet.
(110) “telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means;
(17) “online information and database access or retrieval services” means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information technology and includes electronic services such as,––
- advertising on the internet;
- providing cloud services;
- provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet;
- providing data or information, retrievable or otherwise, to any person in electronic form through a computer network;
- online supplies of digital content (movies, television shows, music and the like);
- digital data storage; and
- online gaming;
(44) “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;
(45) “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;
Here is detailed reply for bloggers who have different source of income i.e Income form AdSense, YouTube, Affiliates, E-Book sells, referral income from Amazon or Flipkart and direct advertisements etc. Detail analysis of GST Act, Rules and Forms for Blogger earnings from AdSense, Affiliates Marketing, Referral programme and Direct Advertisements. However, detail analysis has also been done for each blogger categories in the next heading “How GST impact on Blogging income”.
GST on AdSense Income:
If you earn only from Google AdSense as publisher, then you are not required to pay GST. GST is not applicable for Adsense income. The reason is quite simple. GST is applicable on supply of goods or services. Even though you are providing advertising services on your website to advertisers, the advertisers are already charged GST by Google (Through Adwords). So Google has infact paid the GST on your behalf. So you don’t need to pay any GST on your Adsense income. 😉
Google sends you payment from Singapore. As a result, Google becomes your overseas client and your publishing of AdSense ads would be treated as export of services. The export of services comes under 0% GST tax slab.
There is another thing. Because you do not raise invoice to Google and Google does not give you 18% extra, so it does,’t make sense to pay 18% tax from our own pocket. If you could raise an invoice to Google to ask for your AdSense payment, then you could add 18% GST in that invoice… and then in turn you could pay this amount to the government. Thankfully export of services is taxed at 0% — so, AdSense publishers don’t need to pay GST from their own pocket.
GST ON Google AdX Ads:
If you’re using AdX ads, then you will have to pay 18% GST if your AdX supplier is located in India.
GST ON YouTube Income:
If you have created YouTube Channel and monetizing your uploaded videos on YouTube, then also you need not register for GST or pay any GST tax to Government.
AdSense and YouTube Income:
Those bloggers/publishers whose income source is AdSense as well as YouTube, they are also exempt from any GST rules and regulations. No need to pay GST for that blogger.
GST on Affiliate Income:
If you have joined affiliate program to earn commission on every purchase through the affiliate links, you have to register yourself for GST. If the client is located outside India, you don’t need to pay GST on affiliate income. But if your affiliate client in located within India, you have to pay 18% GST. For example, if you are running affiliate ads for a web hosting company whose office is located in USA, you don’t have to pay GST. But if you are running ads of an Indian web hosting company then you have to pay 18% GST.
GST on Selling Books:
If you sell either e-Books or paperback, you have to register for GST irrespective of the fact that you are selling that books in digital format or paperback i.e. physical form.
GST On Direct Advertisements:
If you receive income through direct advertisement, then also you have to get GSTIN. That means you have to register for GST in case of selling ad Space directly to advertisers. These are the advertisements that you source yourself. Unlike AdSense and affiliate ads, you have to raise invoice for getting direct ads. In that invoice, you need to ad 18% GST and then pay this 18% amount to the government.
Advertorials and Sponsored Articles:
Just like direct ads, you have to take 18% GST from your client and then pay it to the government.