Impact of GST on YouTube Income

As we already know people are being bolted inside the house due to the second wave of COVID-19, new channels with vloggers are springing up on a quick note. So, in this blog, we will comprehend the impact of GST on YouTube income.  

When a YouTube Channel Starts Getting Revenue?  

YouTube is a platform owned by Google. It permits users or people to open a YouTube account/channel. A YouTube channel starts getting revenue when such a channel/uploaded video reaches a certain level of subscribers and views on the video. It shall be noted that YouTube also earns through promotions and advertisements on such videos. 

Impact of GST on YouTube Income 

Under the GST regime, any transaction attracts GST when it falls under the definition of supply. 

As per Section 7 of the CGST Act, the supply of goods or services attracts GST, when it made for a consideration 

YouTube Services Treatment – Domestic Supply or Export 

To know YouTube income treatment, whether it is domestic supply or export depends on the place of supply.  

As per Section 13(12) read along with Section 2(17) of the IGST Act, this service should be considered as online information and database access or retrieval (OIDAR) services and the location of the service recipient is the place of supply. 

However, to determine whether YouTube services are considered as export of services, the below-listed conditions must be met: 

1. The service supplier must be located in India 
2. The recipient must be located outside India 
3. The place of supply shall be located outside the Indian Territory. 
4. The payment must be received in convertible foreign exchange 
5. The supplier and recipient must not be an establishment of a distinctive person. 

In the case of YouTube, all the above conditions are getting fulfilled: 

1. The supplier of service is the channel owners in India 
2. The recipient is Google located outside India 
3. Place of supply is outside India 
4. Payment is also received in convertible Foreign Exchange 
5. They are not establishments of distinct persons. 

Hence, we can conclude that YouTube services shall be treated as export of services and GST is not applicable on such export of services. 

Is GST Registration, Billing, or Refund Mandatory for YouTube Channel Owners or Vloggers? 

So, the main question is whether YouTube channel owners need to register under GST. Do they need to issue e-invoices to Google? Are they eligible to claim a refund? 

As per the GST Act, every taxpayer whose aggregate turnover exceeds INR 20 Lakhs needs to register under GST, issue e-invoices, and claim a refund for the accumulated ITC. Hence, YouTube channel owners or entrepreneurs whose income is more than INR 20 Lakhs per annum are eligible and liable to register under GST, raise an e-invoice, and claim a refund for accumulated Input Tax Credit (ITC). 

However, it shall be further noted that any person can register under GST voluntarily irrespective of aggregate turnover. 

How Can GSTrobo® Help YouTube Channel Owners or Vloggers? 

GSTrobo® has established a unique GST software for all the YouTube channel owners or vloggers out there in the market. It is an easy-to-use GST software that helps them to stay GST compliant and dodge all the consequences under GST, such as penalties or fines.