Many people are choosing to pursue careers in blogging, and with the growth of social media, influencers and bloggers have become crucial players in the marketing sector. The burden of paying taxes, meanwhile, comes with the increase in blogging revenue. Whether or not bloggers must pay GST is one of the most often questioned queries.
In India, all indirect taxes on goods and services were replaced by the Goods and Services Tax (GST), a new tax structure. It is an extensive tax structure imposed on the provision of goods and services. The three categories of the GST are CGST, SGST, and IGST. The central government imposes CGST, the state governments SGST, and the interstate supply of goods and services (IGST) is subject to IGST.
A well-liked platform for bloggers to make money from adverts on their websites is Google AdSense. The income from AdSense is taxable under the Income Tax Act since it is regarded as income from a business or profession. According to the GST Act, a business must register for GST if its annual revenue exceeds Rs. 20 lakhs (Rs. 10 lakhs for North-Eastern and hill states). Thus, GST registration is necessary if AdSense income exceeds the threshold limit.
As a blogger, you might have to pay for things like clothing, accessories, and other things needed for content development. However, unless they are used only for business reasons, such expenses cannot be written off as business expenses. For instance, if you buy clothes purely for the purpose of producing content, that purchase may qualify as a business expense and be deducted from your taxes. However, it cannot be deemed a company expense if the clothing is also utilized for personal reasons. What Tax Deductions Do Influencers Have?
Influencers are people who are well-known on social media and are recognized for their skill in a certain field. The expenses that an influencer can deduct will vary depending on the type of business. For instance, if an influencer is an expert in fitness, then expenses like gym dues, nutritional supplements, and fitness gear might be deducted as company costs. Similar to this, expenses like makeup, skincare, and beauty treatments can be deducted if an influencer is a beauty expert. Then, what do you have to offer as an influencer?
Influencers are eligible to deduct expenses that are only used for professional activities. Equipment and tools needed for content creation, such as cameras, laptops, and software, are some of the costs that might be claimed. 2. Business costs like rent, internet, and phone bills. 3. Travel-related costs including lodging and car rentals. 4. Marketing costs, such as those for advertising and promotions.
In conclusion, GST registration is required if a blogger or influencer’s yearly revenue surpasses the threshold amount. Bloggers and influencers may deduct expenses that are used only for business reasons, and only expenses like clothing and accessories that are used only for business purposes may be deducted. To file accurate tax returns, it is crucial to keep thorough records of all transactions and expenditures.