GST Implication for India
Comments
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@CA_Abhishek
I found below GST number for Udemy India LLP and it says it is registered in Harayana state.06AAFFU9763M1ZE
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@CA_Abhishek
Consider this as 2 partners running a business and have 1 GST number. After every sale of item they deduct 18% GST and whatever amount left they devide amoung themselves (percentage based revenue share)0 -
@Alfa-eLearning
@LearnAnywhe151That's great, it cleared all confusion considering Udemy india in involved. Sale to indian students is a domestic sale liable to gst by Udemy India's part.
You are being paid royalty/ like commision for both domestic and non domestic sale by Udemy. That's your revenue/turnover and it will be different from Udemy sales. So now where is the confusion?
Don't consider it as a double taxation on the same income. It's the nature of indirect tax, it keeps on passing from one layer to another and finally to customer.
(According to you, if A give part service to B and B give final service to C, who will charge Gst to whome? As per you, only B will charge to C on full amount. But that's not correct, A will charge Gst to B (say 18 on ₹ 100) & pay ₹18 to govt., then B will charge GST to C (Say 36 on ₹. 200) and B will pay to govt ₹ 18 (36-18). In this way govt gets Rs. 36 from A & B both. This is how indirect tax system works. So don't get confused considering it as a double taxation.
You are not providing service to Udemy india, you are providing the same to Udemy USA it's Export of service.
If you had provided service to Indian Udemy, you have to raised gst invoice and Udemy india will have taken ITC of that GST and and deducted this GST from the final GST which it would have collected from all students and paid the remaining to govt.
But in your case provisions related to export of service will apply. There is many provisions under gst which is applicable to exporter and can also make your export exempt. But it all gst provisions will be applicable to you like registration and filing return etc.
Also don't just think about sale to indian students by Udemy, Udemy also selling your courses to non Indians, what you will do for those transections? Will you say like Udemy has already paid taxes to other country so you will not paid to indian govt? No... This does not making any sense. You should have to consider tax based on activities. You can not take shelter behind tax compliance by Udemy. From your activities you are getting royalty/commision and on that you have to pay tax be it direct or indirect.
Well above information is provided by me based on my understanding of Udemy model and gst provisions applicable at this point of time. You are advised to consult with your CA for more details.
Thanks
Regards
CA Abhishek Jain
caabhisheksjain@gmail.com
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Please refer my comment on your reply containing gst number of Udemy. I don't know how to share link of particular reply. I hope you may get idea what I'm trying to convey.
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@CA_Abhishek
Here A & B both are collaborating to sell an item to C. A is providing it's expertise (content) and B is providing it's expertise (platform). Both are partners for selling an item to C. Do you think both partners will pay separate GST (18%) on same invoice ?0 -
It not called as partners, it's called service provider and receiver...in case of goods cycle are like, manufacturers, distributors, wholesaler, relater and then end consumer, goods moves from all this cycle to get to end consumer. Here in all steps gst is being charged and pass on to next layer until it is finally consumed by customer. It's very basic. I'll suggest you to read how pass on ITC works under indirect tax.
There is no partnership and partner relationship exists in this type of transections under GST.
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Let's assume GST is applicable then can't it's credit claimed just like other businesses ?
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This is getting very confusing now.
@CA_Abhishek
Can you summarize your understanding in a short summary? that should be helpful.0 -
Please check my first reply to this post, I have already summarised my understanding step wise. Just update is Udemy india providing service to indian students and I guess similarly Udemy might have registered in all countries w.r.t. gst/sales tax is concerned. But it doesn't matter to you as you are separate legal entity distinct from Udemy and hence all tax provisions will apply to you as well.
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@LearnAnywhe151
This we talked about individual purchases. How about earnings from UFB ? For that we don't know how much we earn from Indian Companies.0 -
No you can't, Udemy india can if you raised a bill with gst to Udemy india instead of Udemy USA. You are the starting point of service, how can you take credit of gst paid by second layer? What credit you can take is - GST Paid by you on purchase of service like when you outsource part of your service to outsiders and he issue a gst invoice, that credit you can take and for gst charged by you to Udemy india, ITC will be taken by Udemy india, (if you issue invoice to Udemy india only).
Bhai.. you need not to worry, you need not to pay even a single rupee on export subject to you fulfill the required conditions under gst act. Just consult with your CA he will explain you all provisions in detail.
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@CA_Abhishek
I am not worried bhai. My CA does all things for me. I just pass him all Udemy earning details. He said GST does not come in place for royalty income and here you have a different opinion from my CA so we are discussing.....1 -
I am sorry, but I don't know what UFB stand for or what is means? Further I would recommend you to take consultancy as you first have to explain me your doubts, show me documents supporting your doubts, and I have to study the same and then I would be able to give you fair advice.
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I think you might have misunderstood him, I don't think he said "gst is not applicable on royalty income", he must have told you that your export of service will be exempt subject to fulfilment of some conditions which he might be taking care of on your behalf.
Just ask him where it is written in gst act k gst is not applicable on royalty income, also try searching on Google for your reference. See...below given screenshot
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Simple thing is we as instructor are not selling the course from our inventory. The earnings would fall under purview of income tax and be subjected to same.
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Hey, did you hire a CA? Can you pass your CA information to me so that I can also connect with him and get some advice on my ITR filling?
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Hi Everyone,
We got mail from udemy saying, we(Instructors) have contract only with udemy inc (US) and nothing to do with Udemy India. Although few question remain answered, We will assume we can close with this.
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Yes I did. His name is CA Abhishek Jain. His contact no is - +91 9579647720
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In case of Udemy an instructor relation, Udemy is already paying GST on the same whatever applicable in India. Instructor will be providing services to Udemy USA and which will be considered as Export of Services and will not be chargeable to tax. Already discussed the same with few other people who are doing the same treatment.
There are certain requirements to declare the services as export of services.
You may please connect with CA Gorav Goyal +91-9910357301 , qualified and experienced chartered accountant for all the local India and International compliances.
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Transparency is always appreciated and if provided required information will be lot helpful for instructors to look into compliances and other aspects.
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Hi, I'm a CA Abhishek Jain. I have been doing ITR Filing and GST compliance of many Udemy instructors for a couple of years. This service is called export of service which is exempt but to claim it as exempt you have to apply for it which you can do only after you register under GST and report your export of service of every month/ quarter by filing gst returns to govt of India. Registering with GST will comes with many other advantages but if you are not still registered then you should start thinking now proactively else once you receive showcase notice from gst officer then you have to pay 18% gst along with hefty of penalty, fine and interest on all your income from udemy till the date you applied for exemption. So mind it its very important to register and do gst compliance. Many CA's are not familiar with these provisions. So choose your CA wisely.
If you want to get in touch with me you can email me at (E-mail removed) or whatsapp (number removed) I would be happy to assist you on this.
You guys can check my other posts as well by going to my account regarding this to get more information on it's taxability under income tax or at GST.
Thanks
Ca Abhishek Jain
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@CA_Abhishek For Udemy instructors that you are filing GST, ITR for, I had few queries:
- For GST filings, what amount to do you show during monthly filings? Is it the actual Gross amount (before withholding) or the actual amount that is received in the bank account in INR?
- Udemy deducts TDS on the actual gross income (before 15% withholding) and that is reported as part of AIS. Now this creates mismatch between actual income received in bank vs AIS reported income. How do you handle that? Can we simply pay tax on actual income received in bank and be good to go?
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@zealvora , No you have to show Gross revenue from Udemy in ITR as well as in the GST return. Gross revenue should always be matched with 26AS, AIS, TIS, and GST returns.
Hope It will solve your query.
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@CA_Abhishek Can Udemy income be added as part of presumptive taxation of 44AD or 44ADA? My guess is that if we treat it as royalty income, it won't be eligible but if we treat it as income from intellectual property, it might be.
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