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YouTube pays Indian creators through Google Asia Pacific (Singapore entity). This means AdSense income is foreign income received in INR after conversion.
Digital economy · Creator
YouTube / AdSense: GST, FEMA, and income tax treatment
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
IT Act, Sec 28 | FEMA | GST, export of service | FIRC
Analysis
Income tax: Taxable as business income at slab rate. You can deduct expenses, equipment, editing software, internet, studio. Sec 58, Income-tax Act 2025 (old Sec 44ADA) not applicable (not a listed profession for "performing arts" in the context of YouTube). GST: Export of service, 0% GST. But you must file a Letter of Undertaking (LUT) annually to export without collecting GST. Without LUT, you'd have to collect 18% GST and claim a refund, tedious. FEMA: Foreign income must be repatriated to India. AdSense deposits into your Indian bank account, your bank issues an FIRC (Foreign Inward Remittance Certificate). Keep all FIRCs, they prove source of foreign income. Maintain records for 7 years.
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