If you’re wondering whether you have to pay taxes when offering services on your personal website, the answer isn’t as complicated as it may seem. Let’s break it down in simpler terms.
There’s a tax rule called Section 24 that says if you’re running an online business and collecting something called Tax Collected at Source (TCS), you have to register for GST, no matter how much money you’re making. However, this rule applies mainly to big platforms, not individual website owners.
If you provide services on your own website, you’re not required to deal with this TCS thing. So, the rule about mandatory registration under Section 24 doesn’t apply to you. Sounds good, right? But hold on, there’s a catch.
Even though you’re off the hook for TCS, you still need to pay attention to another rule in Section 22. This rule sets a limit on how much money you can make before you must register for GST. If you supply cross this limit, you’ll have to register and start paying taxes.
To sum it up: if you’re just running your own website and not acting as a middleman like big online platforms do, you don’t have to worry about TCS. But keep an eye on your supplies – if they go above a certain limit, you’ll need to register for GST and start paying taxes.
Understanding these rules and keeping an eye on your business earnings will help you stay on the right side of the tax system. So, whether you’re a big business or a small one, knowing the rules and staying informed is the key to smooth sailing in the world of online services.
