GST & ITR Reporting for YouTuber with US Viewership and Adsense Income
This query is : Resolved
15 May 2025
One of my clients is a YouTuber earning income via Google AdSense. He has filed LUT under GST and receives income primarily from viewers in the USA. He has submitted Form W-8BEN, so YouTube deducts 15% US withholding tax on gross earnings.
Example:
MONTHLY AdSense income = $10,000
US withholding tax @15% = $1,500
Net remittance = $8,500 → Credited in INR (e.g., @ Rs.100/$ For simplicity) = Rs. 8,50,000
Doubt: How should this income be reported in ITR & GST returns?
Approach 1 (Which I think is correct):
Report gross income (i.e., $10,000 = Rs. 10,00,000) in GST returns, converted at the RBI reference rate/date of remittance.
Similarly, report gross receipts in ITR and compute net profit accordingly.
Then File Form 67 and claim Foreign tax credit u/s 90 for 15% US tax deducted by youtube.
Approach 2:
Report only net amount received (i.e., Rs. 8,50,000) in both GST & ITR.
Ignore the 15% US tax for Indian reporting.
The goal here is not to claim any refund but to follow the legally correct and compliant approach, just to ensure proper treatment. Kindly advise which approach is correct with respect to Indian GST & Income Tax law.
Example:
MONTHLY AdSense income = $10,000
US withholding tax @15% = $1,500
Net remittance = $8,500 → Credited in INR (e.g., @ Rs.100/$ For simplicity) = Rs. 8,50,000
Doubt: How should this income be reported in ITR & GST returns?
Approach 1 (Which I think is correct):
Report gross income (i.e., $10,000 = Rs. 10,00,000) in GST returns, converted at the RBI reference rate/date of remittance.
Similarly, report gross receipts in ITR and compute net profit accordingly.
Then File Form 67 and claim Foreign tax credit u/s 90 for 15% US tax deducted by youtube.
Approach 2:
Report only net amount received (i.e., Rs. 8,50,000) in both GST & ITR.
Ignore the 15% US tax for Indian reporting.
The goal here is not to claim any refund but to follow the legally correct and compliant approach, just to ensure proper treatment. Kindly advise which approach is correct with respect to Indian GST & Income Tax law.
15 May 2025
Approach 1 is right.
16 May 2025
Thanks sir for your reply
16 May 2025
You are welcome...
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