Invoicing a freelance website, w.r.t. gst requirements

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2017 Hello.

I am a freelancer writer based in New Delhi, whose primary source of income is through the online hire-&-work site freelancer.in. This is an Indian subsidiary of Australia based website freelancer.com.

I work with clients from multiple countries, who pay me in their own currencies (typically USD). I periodically withdraw these payments into my bank account via NEFT transfer. The transfer receipts state that the payments are made by 'Freelancer Online India Pvt Ltd.', which is registered in Gurgaon.

I have been treating these bank receipts as my source of income (since payments received on freelancer.in itself are in multiple currencies and don't necessarily reflect in my actual bank account). From this, I gather that for the purpose of tax calculations, my client is freelancer.in (and not the people I might be working with on the site itself). Which also means that if I am to generate any invoices for payment, these would have to be addressed to freelancer.in (or Freelancer Online India Pvt Ltd).

So far, I was making less than 9 lac per annum, and as such wasn't registered for service tax. Now, however, I will need to register for GST - which brings me to my query.

I gather that I have to generate and upload 'tax invoices' for all payments that I receive. Currently, there is no way to invoice freelancer.in itself (individual clients on the website can be invoiced, but this again invokes the matter of multiple currencies and no real sanctity to the transaction).

Could somebody advise me on how I could possibly approach this invoicing process? I could generate invoices for each and every withdrawal that I make from freelancer.in, stating my fee and GST charged on it. These invoices would reflect the exact sum of money received in my bank account, and I would then proceed to paying GST as required. The issue is that there is no way to actually send these invoices through to freelancer.in. Would simply emailing them these invoices (whether they choose to accept them or not), and keeping a record of the same, suffice as far as the new requirements for GST are concerned?

Would appreciate some advice or perspective on this. Thank you!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 June 2017 GST not applicable on either export of services or goods. You can continue with invoicing whatever done earlier.

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2017 Thank you for your response. Could you please guide me as to how the work I do becomes an 'export of service'? I understand that I'm working with foreign clients on the website itself, but for tax purposes, my client is an Indian entity (Freelancer Online India Pvt Ltd, Gurgaon), and I am receiving payments in my bank account in INR. So, since the 'place of provision or service' is in India, and I am NOT receiving payments in 'convertable foreign exchange', am I mistaken in thinking that thia does not count as export of services? Really appreciate the help, thanks again!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 June 2017 Your client is an Indian entity (Freelancer Online India Pvt Ltd, Gurgaon), and you are receiving payments in your bank account in INR, hence your services will not be export of service. You are liable for GST if your annual receipts exceed 20 lacs.