GST and Social Media Content Creators
Social Media Content Creators are on the rise due to technological advancement. Revenue generated from digital platforms contributes to the GDP of the nation. Social media content creators earn revenue from advertising and the media and advertising industry makes up for the 1% of GDP in 2025. The share of revenue is expected to rise in the upcoming years. Therefore, understanding the taxability of social media content creators under GST is vital to meet timely compliance. GST helped streamline the tax structure and simply the process. It has subsumed other indirect taxes and enabled the digitalization of the Indian economy. This article covers all aspects of the impact of GST on social media content creators and the advertising industry.
Who is A Social Media Content Creator under GST?
Individuals who create content on social media platforms like YouTube, Instagram, Facebook, etc. are known as social media content creators. They receive payment from such platforms and other advertising agencies as well. Therefore, their services come under the scanner of GST.
Before the GST was implemented, a service tax was imposed on all advertising services including content creation as the major source of income for social media content creators is advertisement. However, GST has helped streamline the tax structure and optimize revenue for governments.
Taxability of Online Content Creators Under GST
GST at the rate of 18% applies to social media content creators. All services under the digital media advertising field are taxable at the rate of 18% under the goods and services tax. This uniform rate applies to all digital platforms.
If social media marketing services are provided to clients located outside the state, in such cases, integrated GST is applicable. Those who are registered under the composition scheme do not have to comply with the standard GST rate of 18%. There are lower rates applicable to composition scheme taxpayers.
In case the social media content creator is registered under the Reverse Charge Mechanism, the service recipient is liable to tax under the GST. If content is created through newspapers or magazines, conventional means of advertising, attract GST at the rate of 5%.
GST Registration
To provide online services and create content on social media platforms, individuals require registration under GST. The registration is mandatory if the total aggregate annual income of such creators exceeds Rs 20 lakh.
Other than GST registration requirements, invoice management and regular filing of GST returns are also required to meet timely compliance.
Social media content creators spend a lot of money on the purchase of several pieces of equipment but they cannot claim ITC on such expenses.
SAC Codes for Social Media Services
| Group | Provisions for space and time |
| 998361 | Services |
| 998365 | Purchase or sale of space or time on commission |
| 998366 | Sale of other space or time than on commission |
Get Started with Started
Input Tax Credit is also available for social media service providers. It is to conclude that the services provided by social media content creators are entitled to GST registration, regular filing, and annual threshold. Reach out to TaxDunia to get professional advice on how to manage your finances. We provide personalized services on business, taxation, finance, and other accounting services.
