Hi, I am a web developer providing online ads in my own website. I have registered under service tax as category Ad Agency. My revenue through ads has been between 2L to 3L per year till now. I do this more for passion and hobby but advertising for sustenance. No plans to grow big due to time constraints. Though my earnings are below ST exemption limit of 10L per year, I registered with ST because it was necessary to open bank account in business/trade name. Have been filing ST returns regularly and now migrated to GST. Nature of my services seem to come under OIDAR because it is online advertising. What I need to do further is unclear. I have GSTIN now. Number of questions:
1) Should I register for OIDAR? How?
2) Should I change category from Ad Agency to Online Data Processing ? How?
3) Should I add GST in invoice and collect from recipient and pass it on to Govt. ?
Or GST will be deducted by client from Ad cost (like TDS) and paid to Govt ? which I can file for refund?
Or I just invoice with my GSTIN and client responsible to pay GST to Govt. under reverse charge mechanism, without deducting?
As of now it is unclear to me and looks like there are too many compliance hassles for the small money that I make. Before I file GST for August I want to get it clarified. Also, going forward I don't know whether I should collect GST or not from my clients (below exemption limit 20L) before OIDAR registration. Someone please advicse as to what I should do. Help much appreciated.
Thanks
CAclubindia
