Gst on royality

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PRARTHANA PATIL

Doctor

60 Points Posted on 18 June 2021

I'm planning to start a PRINT ON DEMAND business on US based e-commerce platform, where I just have to upload designs and rest including receiving order, processing and delivering the orders will be done by that ecommerce site. I will get paid through PayPal depending upon the sales. Will this payment be considered as royality? If, yes who will be responsible for GST? Because, if such ecommerce site or publisher is located in INDIA ,then it's that publisher's responsibility to pay GST on reverse charge basis. But, if such publisher is situated OUTSIDE INDIA, then who will pay GST & at what rate will it be charged?

Replies (2)

Quick Summary

This discussion explores the Goods and Services Tax (GST) implications for a UK-based individual operating a print-on-demand business through a US e-commerce platform. The core question is whether payments received for uploaded designs constitute royalties and, if so, who is liable for GST, especially when the platform is located outside India. The consensus leans towards classifying this as an export of services, potentially exempting it from GST if the place of supply is outside India.

Amartya Ghoshal

28 Points Posted on 19 June 2021

Your qestion is not clear to me but as far i understood from above that u r paying some service to that company from where your remuneration will come then i will tell you that the gst is a destination based taxation if your place of supply of services is outside of india then it will be treated as export of services. then no gst attracts on it.

PRARTHANA PATIL

Doctor

60 Points Posted on 19 June 2021

It is a print on demand US based e-commerce platform where I am the artist / designer , where I upload my designs and create virtual listing of various clothings, home accessories etc and e-commerce platform receives order from customers and that platform handles everything including printing and delivering the material to customers . The designer/ artist will get paid depending upon sales of his/her designs/ art work. My questions are

Will this payment be considered as export of services or royalty ? (Because I am not issuing any invoice to them as I'm getting paid at later date for my art work / design depending on sales of products containing my design.)

If it is a royalty, then is GST applicable and who will pay it?

In case of royalty, under which head of income tax, royalty will fall and how much tax rate royalty attracts and which ITR to be filled if one of your source of income is Royalty ?