G.S.T.

Dear Sir/ Madam,

         G.S.T. Rate as below,
       
         A blogger is someone who provides space for brands to place their advertisement. Before we get into a detailed interpretation of GST applicability on Bloggers / You Tubers, it is essential to understand their working pattern. There are facilitator agencies, who work as advertising channel between the companies and the blogger. Most of the bloggers use advertising portals like AdSense from where they earn revenue when ads place on their blogs receive clicks. AdSense works as a medium and bloggers do not know the advertisers behind the system.

GST Applicability on Bloggers

According to section 7 of CGST Act 2017, every supplier whether goods or services are treated as supply under GST. Bloggers supply services by providing a platform to the advertisers to display their advertisement. A blogger is considered as a supplier of services.

Nature of Supply

Nature of services provided by blogger is considered as online information and database Access or Retrieval services. According to section 2(17) of IGST Act 2017 – 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 electronics services such asadvertisement on internet

Place of Supply

Sec 13 of IGST Act 2017 shall apply to determine the place of supply of services where the location of the supplier (Blogger) of services or the location of the recipient (Google AdSense) of service is outside India. As the location of Google Adsense is out side India (Singapore) section 13 of IGST Act 2017 provision will be applicable to ascertain place of supply.

In accordance with the provision of section 13(12) of IGST Act, the place of supply of online information and database access or retrieval services shall be the location of the recipient of services. It means, bloggers covered under sec 13(12) of GST Act and the place of supply of service is the place of Google AdSense / You Tube. (out of India).

Whether it is Export of Service or not:

Section 2(6) of IGST Act 2017 defines Export of Services as the supply of any service when, ––

1. the supplier of service is located in India;

2. the recipient of service is located outside India;

3. the place of supply of service is outside India

4. the payment for such service has been received by the supplier of service in convertible foreign exchange; and

5. the supplier of service and the recipient of service are not merely establishments of a distinct person;