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Money earned from this scheme of Twitter, users will have to pay 18% tax, know why experts said this

If you are thinking of earning money from Elon Musk’s social media platform X from Ad Revenue Sharing Scheme, then you have to be ready to pay tax on it as well. In fact, the income received by users from X (formerly Twitter) under the Ad Revenue Sharing Scheme will be considered as a supply under the GST law and will be taxed at the rate of 18 percent. Experts said .

He said that if the total income of a person from various services including rental income, interest on bank fixed deposits and other professional services exceeds Rs 20 lakh in a year, it will be taxed.

X terms for ad revenue sharing
Recently, the Elon Musk-owned social media platform X has started sharing advertising revenue for its premium customers or verified organizations. To be a part of this revenue sharing program, the account should have 15 million ‘impressions’ on posts and at least 500 ‘followers’ in the last 3 months.

Expert explained the calculation of GST
Several users have recently tweeted about getting a revenue share from X. Experts said that for computing the limit of Rs 20 lakh, such income would be included which are generally exempt from GST. However, GST will not be levied on the exempted income.

At present, individuals and entities earning revenue or income from services above Rs 20 lakh are eligible to take Goods and Services Tax (GST) registration. For some special category states like Mizoram, Meghalaya, Manipur, this limit is Rs 10 lakh.

GST registration will have to be done in this situation
AMRG & Associates Senior Partner Rajat Mohan said that if a person earns interest income of Rs 20 lakh annually from banks, and who neither pays GST nor has GST registration.

He further added that now, if that person earns any additional taxable income, say Rs 1 lakh, from a platform like Twitter, he will have to take a GST registration and the amount above Rs 20 lakh, ie Rs 1 lakh, will attract 18% GST.

Sandeep Jhunjhunwala, partner, Nangia Andersen LLP, said if the content creator receives income from Twitter, it would be considered as ‘export of services’ under GST, as Twitter is outside India and consequently, the place of supply is outside India.

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