![\"GST](\"https:\/\/www.cuelinks.com\/blog\/wp-content\/uploads\/2017\/06\/Gemini_Generated_Image_xyeslxyeslxyeslx-300x157.png\")
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Goods and Services Tax (GST)<\/b> is India\u2019s unified indirect tax on goods and services, introduced in 2017 to replace older taxes like excise, VAT and service tax. It is a destination-based value-added tax, meaning it is levied where the service is consumed. Digital creators: bloggers, YouTubers, affiliates and influencers provide advertising or promotional services, which fall under GST. In fact, the GST law specifically classifies online content and advertising services (Online Information and Database Access or Retrieval Service, OIDARS) as taxable services. That means earnings from affiliate links, ad revenue, or sponsored content are subject to GST just like any other business income.<\/span><\/p>\n Small creators can be exempt if their turnover is low, but the current <\/span>threshold<\/b> is \u20b920 lakh per year for most states (\u20b910 lakh in certain \u201cspecial category\u201d states). In other words, once a blogger or influencer\u2019s total income from <\/span>all<\/b> sources (affiliate commissions, ads, sponsorships, etc.) exceeds \u20b920 lakh in 12 months, they must register for GST. <\/span>Even below that<\/b>, registration is <\/span>still<\/span><\/i> required if any of these apply: (1) the creator provides services across state lines (inter-state supply), or (2) they supply OIDARS from outside India to Indian clients. For example, if an Indian blogger earns commission from an out-of-state e-commerce sale, GST registration is mandatory even if annual income is under \u20b920L. Likewise, foreign-based creators selling services to India must register if revenue exceeds \u20b920L.<\/span><\/p>\n Most creator incomes are taxable at the <\/span>standard 18% rate<\/b> of GST. This includes commissions from affiliate programs, advertising revenue, and paid promotions. For instance, when an influencer charges a brand for a sponsored post, that is a promotional service at 18% GST. Similarly, affiliate commissions which are essentially referral services, attract 18% (under SAC 997157 for commission agents). Ad revenue (e.g. YouTube or blog ads) is treated as business income and also taxed at 18% if the advertiser is in India.<\/span><\/p>\n However, income earned from <\/span>foreign sources<\/b> (e.g. AdSense from Google US or brand deals paid in USD) is generally treated as an export of service. Exported services are zero-rated (0% GST), provided conditions are met (service provider in India, foreign recipient, payment in foreign exchange). In practice, this means a blogger\u2019s AdSense earnings from overseas are not subject to GST (0% rate), although one must register and report them to claim this treatment. (In all cases, the total income: even zero-rated: counts toward the \u20b920L threshold.)<\/span><\/p>\n Registered creators must file regular GST returns. Typically this means <\/span>monthly GSTR-3B<\/b> (summary of sales and tax) by the 20th of the following month, and <\/span>GSTR-1<\/b> (detailed sales) by the 11th (or 13th) of the next month. (Smaller taxpayers may use the QRMP quarterly scheme.) If these returns or payments are late, a penalty of \u20b950\/day (\u20b925 CGST + \u20b925 SGST) applies for each delayed day (up to a statutory cap).<\/span><\/p>\n Failure to register or pay due GST can incur heavier fines. The law prescribes a penalty of 10% of the tax due (minimum \u20b910,000) if someone with GST liability fails to register or pay. For deliberate fraud or evasion, the penalty can rise to 100% of the tax evaded. (Note: For completeness, India\u2019s income tax rules also impose TDS: typically 10% under section 194H: on many advertising\/affiliate payments.)<\/span><\/p>\n In practice, platforms like Cuelinks treat Indian publishers as service providers. When publishers earn commissions or ad revenues via Cuelinks, they invoice <\/span>Cuelinks<\/b> (the aggregator) for the earned amount. An Indian publisher who is GST-registered must add 18% GST to that invoice (forward charge). Cuelinks then pays out this invoice amount to the publisher (after standard deductions). The Cuelinks terms note that payouts are made \u201cnet of statutory deductions\u201d such as <\/span>TDS<\/b>, which implies that GST is treated as part of the invoice value rather than an extra charge borne by Cuelinks. In short, the publisher is responsible for charging and remitting GST on their earnings. If a publisher were unregistered or based outside India, Cuelinks (as the service recipient) might have to handle <\/span>reverse charge<\/b> GST according to law, but Indian publishers are expected to register and charge GST themselves.<\/span><\/p>\nWho Must Register for GST?<\/b><\/h2>\n
GST Rates on Affiliate, Ad and Promotion Income<\/b><\/h2>\n
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<\/p>\nFiling Returns and Penalties<\/b><\/h2>\n
How Cuelinks Handles GST?<\/b><\/h2>\n
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