Home Forum Goods and Services Tax - GST Month 5 2020 2020 (5) This
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Tdayment to content authors - Goods and Services Tax - GSTExtract In case of online education platforms, agreements are done with content authors and exclusive rights are transferred to the publishing platforms. In the instant case, an online education platform entered into a agreement with an author for providing video recordings of a course content and related support services. The consideration agreed to was divided into two parts: the first consisted of a guaranteed agreed value and the other part worked on a revenue sharing model under which the author would get a specific % of the revenue generated from the fee collected from subscribers. Now, two question arises: 1. Would it be considered as sale of content or would fall under royalty income. 2. If it is under royalty, would GST on reverse charge be charged on it? The online platform in question is an unregistered party under GST.
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