If you’re a blogger, content creator, or freelancer earning from Google AdSense, there’s a silent tax rule you might be breaking.
You receive monthly payments in INR from Google. You pay your income tax. All good, right?
Not quite.
The GST Department now wants a piece of that pie — and if you haven’t registered for GST, you could face notices, penalties, or even bank account freezes.
Let’s break down the AdSense-GST confusion in simple terms.
Why Google AdSense Is in the GST Net
Google pays Indian publishers through its entity Google Asia Pacific Pte Ltd, based in Singapore.
That means, under Indian GST laws, you’re providing services to a foreign company.
And under Section 2(6) of the IGST Act, 2017, this is classified as an “Export of Services” — which:
- Is zero-rated under GST
- But requires GST registration, LUT filing, and monthly returns
So yes, even if you’re earning just ₹30,000/month from AdSense, you may be required to register under GST and file returns, even if the tax liability is zero.
Here’s Where Most Freelancers Go Wrong
A typical blogger earning ₹3–5 lakh a year via Google Ads assumes:
- “Income tax is paid, so I’m safe.”
- “My earnings are small, so GST doesn’t apply.”
- “It’s a foreign payment, so no Indian tax applies.”
But this is flawed thinking.
The ₹20 lakh/₹10 lakh threshold for GST doesn’t apply when you’re exporting services to a foreign entity — you’re supposed to register regardless of income.
Real Case: Blogger Gets GST Notice
Let’s say Sahil runs a tech blog and earns ₹45,000/month via AdSense.
- He receives money from Google Singapore
- He doesn’t charge GST, doesn’t register, and doesn’t file LUT
- He thinks zero GST means no paperwork
Suddenly in April 2025, he receives an email titled:
“GST Compliance Alert – Export of Service Without Registration”
The GST department had matched his Form 26AS income with Google’s reported payouts and found that he had:
- No GST registration
- No LUT filing
- No zero-rated invoices submitted
The result?
He may now be asked to pay 18% GST on all earnings, with interest and late fee, since his income was technically “non-compliant”.
What the Law Says (In Simple Words)
If you’re exporting services from India:
- You must take GST registration (even if under ₹20 lakh turnover)
- You must file a Letter of Undertaking (LUT) to avoid charging GST
- You must file GSTR-1 and GSTR-3B every month
If you skip these steps, the government assumes you collected GST but didn’t deposit it — and you may be taxed at 18%.
But Isn’t AdSense Income Already Taxed?
Yes — under income tax.
But GST and income tax are separate:
- Income Tax: Based on your total annual income (profits, not receipts)
- GST: Applies on the services you provide, irrespective of profits
So even if you spent ₹50,000 on running the blog and earned ₹60,000 from AdSense, your GST is calculated on ₹60,000, not the ₹10,000 net income.
What Bloggers and Freelancers Must Do Now
If you earn from:
- Google AdSense
- Amazon Associates (foreign affiliate payouts)
- Teachable/Udemy sales
- Direct international client payments (via PayPal, Wise, etc.)
You must:
- Register under GST
- File LUT every year (Letter of Undertaking)
- Raise proper GST-compliant export invoices
- File monthly GST returns (even with zero tax)
This keeps your income legally “zero-rated” and avoids demand notices.
What If I Already Missed Past Filings?
Here’s how you can clean things up:
- Register for GST now
- Apply for LUT for FY 2025–26
- File pending returns voluntarily (via GSTR-1 and GSTR-3B)
- Maintain proper invoices from now on
If the department issues a SCN (Show Cause Notice) later, you at least have proof of voluntary compliance.
Bottom Line
If you’re earning AdSense income or international digital payouts:
GST is not optional, even if you pay zero.
The department now uses data from banks, PAN, and Google filings to match payouts. Non-compliance isn’t invisible anymore.
Stox N Tax 
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