reg GST, paypal, LUT

Komal762
Komal762 Posts: 11 researcher rank
in First-time course creation

Hi

I am based in India and just published my first course.

I read few posts and some people said that its not necessary to register for GST unless the earning reaches GST threshold. Some people said that it may be needed to pay for GST especially with business paypal account. Another one mentioned that one can use LUT to avoid paying GST as Udemy is accessed globally.

I am also about to sell it on my personal website. What would you all suggest who are in the same boat and based in India. Did you use paypal personal or business intially, register for GST and all, do LUT?

I would really appreciate your advice with how you handled funds transfer process..

Thanks

Comments

  • Bella
    Bella Posts: 3,694 traveler rank

    Hi @Komal762
    , I hope you're doing well! Please note that Udemy is not able to provide tax advice. Instructors are responsible for remitting any income tax relevant to them to their local tax authorities. We suggest consulting a tax professional for individual tax advice, or to understand your individual tax responsibilities for the income received from Udemy.

    Bella Almeida

    Udemy Community

  • TechiWIZ
    TechiWIZ Posts: 39 storyteller rank

    Hello Komal,

    I think Paypal personal you can not use to receive money and paypal business can be use.

    I think GST not requiere and you may give your PAN number in place of TIN in tax info if you are individual tax payer in India.

    By d way we are using Payoneer and no issue in receiving payments.

    But as Bella said you may also consult any tax expert to avoid any issue.

    Rrgards,

    TechiWIZ

  • Komal762
    Komal762 Posts: 11 researcher rank

    thanks..actually i already discussed with customer care.they said its fine to use paypal personal

  • Rahul Iyer
    Rahul Iyer Posts: 399 visionary rank

    Hi @Komal762
    ,

    Below are the details that you will find helpful:

    Paypal Personal vs. Business: I operate as a business on Udemy. Hence, I use Paypal Business. It looks like your question is already resolved.

    GST: Unless your overall turn-around doesn't exceed GST Threshold limit, you are not required to request for a GST number. Pan card will work just fine. If you do get a GST number, its no harm. But you are NOT paying GST initially, so in my opinion why spend the effort to do all the paperwork? You will find more information on GST Thresholds here: https://cleartax.in/s/gst-registration-limits-increased

    LUT: At this moment, since you are not paying any GST, LUT is NOT needed. On the recommendation of one Indian instructor, I tried the LUT route with my CA's help, but it is kind of messy and unclear. So we are NOT meddling with it at this point. If I get more inputs on LUT, I will definitely add in this forum.

    I hope this helps. Feel free to share any additional questions. And wish you all the success

  • CA_Abhishek
    CA_Abhishek Posts: 38 traveler rank

    @Komal762
    @Rahul Iyer
    @TechiWIZ
    I am a Certified Chartered Accountant and am already handling GST + Income tax of Indian instructors on Udemy income. I would like to reply on your post regarding GST & Income tax implications on income from Udemy income.

    GST is Applicable for interstate and Export services without any limit. For intrastate [within the same state] sales GST is not applicable until your turnover crosses the threshold.

    As you are providing service to Udemy US, you also have to apply for GST and do all the GST compliance throughout the year. However, you can apply for exemption from payment of GST as you are exporting the service out of India. However, you can claim an exemption from the export of service case by filing for LUT. But for that, you will need to get yourself registered under the GST.

    For Income Tax [withholding tax by Udemy from your income]: -

    Udemy deducts Tax from your royalty income. However, you can claim that withholding tax back while filing your Indian tax return as per the India - US tax treaty and accordingly reduce your indian income tax to that extent.

    Important Note: You may lose the FTC [Foreign Tax Credit] permanently for a particular year if you do not apply for a rebate before filing your ITR/Revised ITR and similar is also applicable for GST if you did not apply for GST exemption at the earliest.

    If you or anybody needs assistance or would like to know more about this topic on income tax return filing + Annual GST compliance for the income from Udemy US, you can have a one to one free on call consultancy with me and i I would be happy to solve each of your doubts. You can connect with me through my website www.tax2save.in or email caabhisheksjain@gmail.com

    Thanks & Regard

    CA Abhishek Jain

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