GST implication on Youtubers / Bloggers / Consideration Received Via Google AdSense

Hello Here we will Give a Relevant Coverage to GST implication on Money Earned Via YouTube /Bloggers by Way of Advertisement on their Websites/Videos/Blogs

– Supply As per section 7 of CGST act 2017

(1) For the purposes of this Act, the expression “supply” includes––

(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

Hence it’s a Supply As per Section 7 of CGST Act 2017 .

– Supply of Goods or Supply of Services?

As per section 2(102)

(102) “services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;

Hence no two views its Service , Supply of Service. Specifically Temp/Permanent Use of IPR

– Whether it Is Export of Service?

This will vary from case to case , under the case of Monetization of YouTube , AdSense etc. , it depends upon

i) Location of Supplier (LOS) and

ii) Location of Recipient (LOR)

which will be judged from the Contract Agreement which the Person has entered into.


Upon the fulfillment of Export of Service Definition which is

“export of services” means the supply of any service when,––

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and

(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

So it has to be make sure that For Export of Service all of the Conditions have to be satisfied.

Ques: What if Supplier is in India and Receiver outside India but Place of Supply in India?

Ans :Then it will not be considered as Export of Service.

Ques: What if Payment is Received in INR?

Ans :Then it will not be considered as Export of Service, Since No Convertible Forex has been Received.

Ques: Whether Required for Registration?

Ans : Yes if his Turnover Exceeds Rs. 20 Lakh Rupees. As per Section 22 of CGST Act 2017

Ques : Type of Supply and Rate?



This will Be

  • Interstate Supply if Supplier and Recipient Are in Different States.
  • Intrastate Supply if Supplier and Recipient Are in Different States.

Rate of GST on Temp/Permanent Use of IPR

Chapter / Section / Heading Description of Service CGST
Heading 9973
(Leasing or rental services, with or without operator)
(i) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of goods other than Information Technology software. 6 6 12

Whether Any Benefit of Export of Service?

Important To Understand :

“zero rated supply” means any of the following supplies of goods or services or both, namely:––

(a) export of goods or services or both; or

(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:––

Option – I Without Payment of Tax Under LUT

  • he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure in FORM GST RFD-11, without payment of integrated tax and claim refund of unutilized input tax credit; or

Option – II With Payment of Tax & Them Claim Refund

  • he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.

As Per Chapter X , Rule 89(2)(C)
Statement containing

  1. the number and date of invoices and
  2. the relevant Bank Realization Certificates or Foreign Inward Remittance Certificates,

as the case may be, in a case where the refund is on account of the export of services;

In Either of The Case The Foreign Remittance has to be brought into India and FIRC (Foreign Inward Remittance Certification Has to be obtained )

My Fellow Members Correct me , If I’m Wrong.

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January 2021