Now every blogger worrying about GST and how it will effect on their income after announcing that the GST will be applicable on Bloggers by the Indian Government. In this post, I’ll try to answer the most of the doubts raised by Indian bloggers about what is GST and How GST Will Impact On Bloggers.
What is GST?
Goods and services tax (GST) is an indirect tax which was introduced by the Government of India and effect from July 1st 2017. GST applicable throughout India and it replaced the multiple taxes levied by the State and Central governments which includes central excise duty, customs duty, service tax, surcharges and VAT. Direct taxes like income tax and corporate tax are not affected by GST.
GST is levied on all transactions and all types of services such as purchase, sale, transfer, lease and import of goods/services. GST rates are separated in 5 different slabs 0%, 5%, 12%, 18% and 28%.
How GST Will Impact On Bloggers:
Now coming to our topic, how GST will impact on bloggers?
As per IGST act 2017, below clause was clearly explained and almost all internet services are fall under GST.
(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