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Am I liable to pay GST under Reverse Charge Mechanism?

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Tax_Noob

Taxpayer

39 Points Posted on 29 December 2021

Hi Everyone,

I'm a freelance software engineer working on Upwork. Upwork takes certain % as commission on my earnings and creates invoices to me for that commission, this invoice doesn't include GST.

For example if I get project worth $1000, upwork will take 10% as commission and create invoice for $100 to me.

Do I have to pay GST under RCM on this $100? If yes, under which service from this PDF I'm liable to pay GST? https://assets1.cleartax-cdn.com/s/img/2021/07/15211403/List-of-Goods-and-Services-notified-under-RCM1.pdf

Thanks!

Replies (2)

Quick Summary

This discussion explores whether a freelance software engineer working through Upwork is liable to pay GST under the Reverse Charge Mechanism (RCM) on commission fees charged by Upwork. The freelancer receives invoices from Upwork for these commissions, which do not include GST. They are seeking clarification on their tax obligations and the specific services that might fall under RCM, as advice from chartered accountants varies.