India requires Upwork to collect goods and services tax (GST) and remit it to India’s government unless we have a valid Goods and Services Tax Identification Number (GSTIN) on file for you. GST is a tax on goods or services, including our services to you, and “remit” means to send money for a payment.
Examples of services that GST applies to in India
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Marketplace fee, Contract Initiation Fee, conversion fee, and recruiter fee
When we charge tax, it’s because your government requires us to, which means this tax may change or apply to additional services in the future.
Tax rate
In India, the GST rate is 18% of the cost of the service being taxed. For example, if you pay $100 USD in marketplace fees, you will pay $18 in tax, for a total of $118.
You’ll see the estimated amount of tax on your invoices and Transaction History.
GSTIN
If you provide a valid GSTIN to Upwork, we will not have to collect this tax from you. You can enter or edit your GSTIN in your account’s Settings > Tax Information.
We’ll check whether the GSTIN you provide is valid and email you when we have confirmed it is valid, which usually happens within a few days. We’ll also email you to let you know if we are unable to validate your ID or if there is a delay.
Your India GSTIN number is different from your tax identification number. It is a unique ID that you may request from your government by registering for GST in India.
It has 15 alphanumeric characters and can start and end with a letter or number. It might look like this, for example: 27ABCDE1234F1Z5.
To learn more, visit the India tax authority website for indirect taxes.
Exemption
India does not offer any exemptions from GST that are applicable to Upwork’s services, but you can avoid GST charges being collected by Upwork on your behalf by providing a valid GSTIN.
Location and information changes
If you change locations and update this information in your account by visiting Settings › My Info › Company Contacts, we will automatically adjust your GST to correspond with the rates in your new country of residence or stop collecting if there is no GST, or a similar tax, in your new country.
However, you may have to revalidate your GSTIN when you change locations.
You may also have to revalidate your GSTIN if you make other changes to your information, such as changing your legal name.
Disclaimer
This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.
Frequently Asked Questions
India’s GST applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in India and have not provided us with a valid GSTIN.
We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. India requires that we collect GST on Upwork services and remit them to your government unless we have a valid GSTIN on file for you.
No, if you provide a valid GSTIN, we will not have to collect and remit GST for you. To enter your GSTIN, go to your account’s Settings > Tax Information.
We will email you to let you know when we have validated your GSTIN. We’ll also let you know if we were unable to validate it. Usually we will contact you within a few days.
Please check to make sure you are entering the correct number. The GSTIN has 15 alphanumeric characters and can start and end with a letter or number. It might look like this, for example: 27ABCDE1234F1Z5. If the number you entered is correct but we were not able to validate it, you may want to talk with a tax advisor.
You are not required to have or submit a GSTIN. However, if you do not provide a valid GSTIN, we are required to charge you GST and remit it to the government of India.
If you provide a valid GSTIN, we will not be required to collect the tax. To enter your GSTIN, go to your account’s Settings > Tax Information.
If you do not currently have a GST number, you may wish to consult with a trusted tax advisor. Upwork cannot provide tax advice.
We are still required to collect GST even if you are only residing in India temporarily. If you move to another country, you can update your information in your account’s Settings › My Info › Company Contacts. We will automatically adjust your GST to correspond with the rates in your new country of residence or stop collecting if there is no GST or a similar tax, in your new country.
No, we remit any GST collected directly to the government of India and will not be able to refund it. You may be able to claim a credit with your local tax authority for what you paid. We recommend that you consult with your local tax authority or your tax advisor for more information.
