Tax & GST implication of earnings from Upwork or other such service providers

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Freelancers in India earning through platforms like Upwork need to understand GST implications. While Upwork handles TDS, GST registration might be mandatory, especially for interstate supplies or if you're considered an e-commerce operator. Export of services to overseas clients is generally treated as such, but the Rs. 20 lakh exemption limit's applicability depends on specific conditions and whether you're already registered.

vaibhav sultania

vaibhav sultania (Querist)

17 September 2021 Upwork is an online platform where freelancers can bid for projects.
I am residing in India and registered as a freelancer on this platform and bill my clients (some based in India & some abroad) in USD.
Upwork charges service charge on the total invoice amount and is also required to deduct TDS. Upwork is depositing this TDS with govt of India under section 194-O.

I would like to understand if I am required to pay GST in this case? If yes, then does the 20Lac exemption limit is applicable for me? Can this income from Upwork be counted as export of service or will it be e-commerce?

Lekhraj sood

Lekhraj sood (Expert)

17 September 2021 You will have to register under GST without any benefit of Rs.20 lakhs. For overseas assignments if you are billing and getting in USD, then it will be treated export of service.

Udaya Chandran

Udaya Chandran (Expert)

17 September 2021 However, export of service is treated as inter-state supply, GST registration is not required if the supply of service turnover is within Rs.20 Lakhs (Rs.10 Lakhs in special category states) vide Notification No.10/2017 - IGST dated 13/10/2017.

Lekhraj sood

Lekhraj sood (Expert)

17 September 2021 Section 24 makes it compulsory to obtain registration for interstate supply. This service is provided through e-commerce operator so that also makes it mandatory.

CA Altamush Zafar

CA Altamush Zafar (Expert)

18 September 2021 If your turnover is less than 20 lakhs per annum and you are engaged only in supply of services even if they are export of services benefit is available under Notification and therefore you don't need to register.
If you are already registered then you have to comply with all GST provisions.

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