𝐆𝐒𝐓 𝐢𝐬 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞 𝐨𝐧 𝐗 (𝐟𝐨𝐫𝐦𝐞𝐫𝐥𝐲 𝐓𝐰𝐢𝐭𝐭𝐞𝐫) 𝐀𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐒𝐡𝐚𝐫𝐢𝐧𝐠 𝐁𝐞𝐲𝐨𝐧𝐝 𝐑𝐬 𝟐𝟎 𝐋𝐚𝐤𝐡 𝐀𝐧𝐧𝐮𝐚𝐥 𝐓𝐡𝐫𝐞𝐬𝐡𝐨𝐥𝐝

The tax will be levied at 18% on the amount above Rs 20 lakh.

The threshold of Rs 20 lakh is applicable to all individuals and entities, including social influencers.

The income from ad revenue sharing will be aggregated with other income from all sources, such as rental income, interest income, and professional fees, to determine whether the threshold has been exceeded.

If the threshold is exceeded, the individual or entity will be required to register for GST and collect GST on all supplies made, including the ad revenue-sharing income.

The GST liability will be on the recipient of the ad revenue sharing income, i.e., the social influencer.

𝐆𝐒𝐓 𝐨𝐫 𝐈𝐓𝐂 𝐑𝐞𝐟𝐮𝐧𝐝𝐬 𝐢𝐬 𝐚𝐥𝐰𝐚𝐲𝐬 𝐬𝐮𝐛𝐣𝐞𝐜𝐭 𝐭𝐨 𝐑𝐞𝐟𝐮𝐧𝐝 𝐜𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐭𝐨 𝐭𝐡𝐞 𝐬𝐚𝐭𝐢𝐬𝐟𝐚𝐜𝐭𝐢𝐨𝐧 𝐨𝐟 "𝐏𝐫𝐨𝐩𝐞𝐫 𝐎𝐟𝐟𝐢𝐜𝐞𝐫".

There are many Service Exporters who Export Services but receive money through PayPal or similar payment gateways.

These do not issue FIRCs, and the department rejects their Refund claim.

This is a hardship, in my opinion, as they fulfill all other conditions, but due to a lack of FIRC, they are denied a Refund.

Warm Regards,

TEAM CHARTERED ACCOUNTANTS
Beri R & Associates
(Registered with ICAI on 1st February, 2023)
E Block Pocket-5 House No.1,
Sector-16, Rohini, Delhi