Let’s examine whether GST is applicable for bloggers.
Bloggers earn revenue from ads placed on their website. In the general course of the business, advertising is taxable and tax dues of the GST Act will be taxed.
The person who displays and demands advertisements in a medium will be the recipient of the services and the distributor will be the person who publishes the ad in advertising / TV / Radio / Print. Say that a television channel shows ads for a toothpaste company. So the TV service is a service distribution and a toothpaste company. The TV channel will raise an invoice in a toothpaste company and buy GTT.
However, in the case of a blog, there are certain aspects to consider:
Is Blogger Distributor? Bloggers provide internet real estate for companies to host their ad. There is a service supply. So Blogger is a distributor.
Who is the receiver? When payments are made to Google Payments, the Clearinghouse works because Google will pay directly to the paid companies. Hosted advertising these companies do not directly interact with the blogger. Blogger does not know exactly how much money was to be charged on these blogs.
Do you know Blogger about GSTIN or other details of companies that place ads on the blog? Here Blogger interacts with Google Ads. He does not know what ads were placed on his website. Who should give those ads? Are these companies registered under GST? Blogger needs to raise an invoice for anyone.
Who gives payments to blog?
Bloggers payments through Google AdSense based on the traffic and ads on the blog. Even though acting as a distributor, Blogger did not raise an invoice. In the meantime, Google charges the companies for the ads they make. So there is no direct connection between the issuer and the receiver.
Google will not accept a distributor or advertising service.
When various aspects of the GST Act are addressed, such a setup is not addressed separately. Until further clarification, we ask bloggers to avoid unnecessary concerns about whether to register or not. We will post our readers if the government announces the changes. This has been referenced by our readers. However, we do not believe that registering is needed immediately, there is not enough specification based on the above points.
All the discussions below are just a concept. Because the GTA Act does not have sufficient clarity about whether or not the bloggers need to register.
This scenario may only change the variation on a report/statement made by Google to be invoked by Google to the extent that Google decides invoice for the advertiser. The transaction may be broken in two stages. [Note: This is just a hypothesis, there is no need for GST to make these transactions disappear].
- Transaction 1-> Google (Distributor), Advertiser (Ticket)
- Transaction 2- 2- Blogger (Distributor), Google (Recipient)
You can raise an invoice, it is important to identify where the service is.
Distributor of India and the recipient
The advertising company provides India-based and invoicing information from Google India
– Where IGST is charged where advertisers and Google are based on different states.
– SGST + CGST advertiser and Google will be placed at the same level.