Gst applicable
This query is : Resolved
24 July 2017
Hi,
GST Applicable on books royalty receivable (copy right) ???
GST Applicable on books royalty receivable (copy right) ???
28 July 2017
IS GST APPLICABLE ON BOOKS ROYALTIES TO AUTHOR ?
26 July 2024
GST applicability on book royalties, including those paid to authors, is an important topic for both publishers and authors. Here’s a detailed look at how GST applies in this context:
### GST on Book Royalties
1. **Royalty Payments to Authors**:
- **Definition of Royalty**: Royalties are payments made to authors or creators for the use of their intellectual property, such as books, under copyright laws.
- **GST Applicability**: Under the GST regime in India, royalty payments for the use of intellectual property rights (IPR), including books, are considered a supply of services.
2. **Taxability**:
- **Services Under GST**: Royalty payments for books are classified under the category of “Intellectual Property Rights (IPR) Services” in the GST framework.
- **Rate of GST**: As of the latest guidelines, the GST rate applicable on royalty payments for the use of intellectual property rights, including books, is **18%**. This rate includes both central and state GST components.
### GST Treatment
1. **For Authors**:
- **Receipt of Royalty**: Authors receiving royalties for their books will need to account for GST on these payments. They are required to issue a GST invoice to the publisher or any other entity making the royalty payment.
- **GST Registration**: Authors receiving substantial royalty payments might need to obtain GST registration if their aggregate turnover exceeds the threshold limit prescribed by GST laws. Even if registration is not mandatory, maintaining proper records and issuing GST-compliant invoices is advisable.
2. **For Publishers**:
- **Payment of Royalty**: Publishers who pay royalties to authors need to ensure that GST is properly accounted for and paid. The publisher may claim an input tax credit (ITC) for the GST paid on such royalties, subject to compliance with GST regulations.
### GST Invoicing and Compliance
1. **Invoicing**:
- **Invoice Details**: Authors should issue a GST invoice for the royalty payments received. The invoice should include:
- Author's GSTIN (if applicable).
- Details of the royalty payment.
- GST rate (18%) and amount.
- Total value of the royalty including GST.
2. **GST Returns**:
- **Filing**: Authors and publishers must include the royalty payments in their GST returns, showing both the output tax (GST on royalties) and any input tax credit (ITC) if applicable.
### Summary
- **GST Rate**: 18% on royalties for the use of books or other intellectual property.
- **Applicability**: GST is applicable on the royalty payments made to authors for the use of their copyrighted works.
- **Registration**: Authors may need GST registration if their turnover exceeds the threshold or if they are required to comply with GST regulations based on their total income.
For specific guidance tailored to your situation, including any updates to GST rates or exemptions, consulting with a GST professional or tax advisor is recommended.
### GST on Book Royalties
1. **Royalty Payments to Authors**:
- **Definition of Royalty**: Royalties are payments made to authors or creators for the use of their intellectual property, such as books, under copyright laws.
- **GST Applicability**: Under the GST regime in India, royalty payments for the use of intellectual property rights (IPR), including books, are considered a supply of services.
2. **Taxability**:
- **Services Under GST**: Royalty payments for books are classified under the category of “Intellectual Property Rights (IPR) Services” in the GST framework.
- **Rate of GST**: As of the latest guidelines, the GST rate applicable on royalty payments for the use of intellectual property rights, including books, is **18%**. This rate includes both central and state GST components.
### GST Treatment
1. **For Authors**:
- **Receipt of Royalty**: Authors receiving royalties for their books will need to account for GST on these payments. They are required to issue a GST invoice to the publisher or any other entity making the royalty payment.
- **GST Registration**: Authors receiving substantial royalty payments might need to obtain GST registration if their aggregate turnover exceeds the threshold limit prescribed by GST laws. Even if registration is not mandatory, maintaining proper records and issuing GST-compliant invoices is advisable.
2. **For Publishers**:
- **Payment of Royalty**: Publishers who pay royalties to authors need to ensure that GST is properly accounted for and paid. The publisher may claim an input tax credit (ITC) for the GST paid on such royalties, subject to compliance with GST regulations.
### GST Invoicing and Compliance
1. **Invoicing**:
- **Invoice Details**: Authors should issue a GST invoice for the royalty payments received. The invoice should include:
- Author's GSTIN (if applicable).
- Details of the royalty payment.
- GST rate (18%) and amount.
- Total value of the royalty including GST.
2. **GST Returns**:
- **Filing**: Authors and publishers must include the royalty payments in their GST returns, showing both the output tax (GST on royalties) and any input tax credit (ITC) if applicable.
### Summary
- **GST Rate**: 18% on royalties for the use of books or other intellectual property.
- **Applicability**: GST is applicable on the royalty payments made to authors for the use of their copyrighted works.
- **Registration**: Authors may need GST registration if their turnover exceeds the threshold or if they are required to comply with GST regulations based on their total income.
For specific guidance tailored to your situation, including any updates to GST rates or exemptions, consulting with a GST professional or tax advisor is recommended.
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