Question And Answer
Subject: Is GST applicable on Google Adsense income?
Querist: Dilip Sanghavi
Answered by:
Tags: , ,
Date: October 22, 2023
Query asked by Dilip Sanghavi

Sir, I am a YouTuber based in Ahmedabad. I have a channel on YouTube where I make videos on various topics. I also have a blog where I write articles.

I have monetized the channel and blog with Google Adsense.i expect my annual earning in FY 2023-24 from AdSense to exceed Rs 20 Lakhs. All income is received from Singapore.

The income is offered to income-tax under the head “business profits”.

I read an article in Tax Guru that as the AdSense income is received from Singapore, it constitutes “export of services” and is not liable for payment of GST.

However, I also read another article in ClearTax that if the income exceeds Rs 20 Lakh, registration is required though tax is not payable.

I would be grateful if you could kindly clarify the entire GST law on the subject. The problem affects a large number of people who have income from YouTube and blogs.


Dilip Sanghavi

File Uploaded: Not Available

Answer given by

The relevant GST law in respect of your issue can be analyzed as under:
1. As per GST provisions, supplying service is taxable event. However, if the services fall in the category of export services, then they are exempt from levy of GST. Since the money is coming from Singapore, it can be assumed that you are billing to the address of Google at Singapore. You facts should get covered by the judgment of Hon. Bombay High Court in case of Vodafone Idea Limited (WP No.3221 of 2021 dt.4.7.2022)(BHC). In this case, it is held that when the bill is on foreign address of the party the services are considered to be provided to such foreign entity and therefore export of service. Therefore, your reliance on tax guru article will be correct.
However so far as registration is considered the same is required to be obtained on exceeding 20 lakhs turnover, irrespective of the fact that such turnover is export turnover. There is no exemption from registration. This situation is arising due to section 22(1), which requires compulsory registration on exceeding 20 lakhs turnover. The said section is reproduced below.
“ Section 22. Persons liable for registration.-
(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees:
1[Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified:]
2[Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified:
Explanation.-For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.]”
It can be seen that if the aggregate turnover exceeds 20 lakhs, registration is required to be taken.
The definition of ‘aggregate turnover’ in section 2(6) is as under:
“(6) “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;”
It can be seen that export of services is also part of aggregate turnover and hence, if due to export of services there is turnover exceeding 20 lakhs, the registration is required to be obtained.
Accordingly, you may plan your activity.

Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of

Leave a Reply

Your email address will not be published. Required fields are marked *