Impact of GST for X Premium Subscribers (Blue) or Verified Organizations for Sharing of Ad Revenue with “X” (formerly Twitter)

The micro-blogging platform X, decided to share a portion of advertisement earnings from verified user’s organic impressions of ads displayed in replies to content creator post on X. Users could earn at least $10 at a time through this program. However, content creators benefiting from this program may be subject to an 18% GST on their earnings.

How can a creator be eligible for sharing ad revenue:
  1. He must be subscribed to X Premium or Verified Organization
  2. Have at least 5M organic impressions on cumulative post within the last 3 months
  3. Have at least 500 followers
What a creator need once they are eligible:
  1. A Stripe Account: X work with Stripe, payment processor, for payouts
  2. Adhere to our Ads Revenue Share Terms, which include, for example, Creator Monetization Standards and the X Rules
Where would a creator be able to access sharing of Ads Revenue:

Users will be able to apply for both Creator Subscriptions and Ads Revenue Sharing by accessing Monetization in Settings

  1. Go to the “Monetization” section in your settings.
  2. Access “Monetization” through the side menu on iOS and Android, or the overflow menu on the web.
Impact of GST on Sharing Ad Revenue by Creator(s) with X:

Tax Experts are of the Opinion that the Ad Revenue from X is considered to be a supply under the GST law and may falls into the category of “Export of Services” based on Place of Supply Rules under GST. This classification assumes Twitter operates outside of India. If there is any difference of opinion based on facts and circumstances then Aggregate Turnover, including the Twitter Ad Share program, exceeds ₹ 20 lakh in a year, 18% GST would be applicable. In some cases, GST liability may be on the recipient of the ad revenue i.e., the social influencer (content creator).

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