YouTube is a platform where YouTubers uploads the videos and earns revenue when their video gets minimum viewers.
Revenue depends upon the agreement signed with YouTube. Today YouTubers are earning in crores. They works as a freelancer and receives money in their saving bank accounts without taking GST registration. They don’t even think of GST registration thought their payment are in crores.
In a recent case, one of my clients earned a hefty amount from Youtube but he did not comply a single law. Now he is worried as he has become aware about consequences of Non-Compliances and well known statement that ignorance of law is not an excuse.
You must always be aware of basic requirements/compliances of your business. No matter whether you are working as a Freelancer or a company. So Let’s first understand the requirement which every YouTubers need to comply. One of the basic requirements is GST registration when revenue is more than Rs.20 lakh in a year. If one failed to get registered under Gst the penalty for Non registration, Non Filing of returns as well as Non payment of tax may be levied.
Receiving hefty amount in saving bank may invite notice for Income tax. Always prefer current account for your business.
Here agreement signed with YouTube is important document because all GST compliances are depends on it.