GST on Social Media Influencers: Complete Guide!

Social Media is no longer just a space for sharing photos and opinions, over certain years it has become a major source of influential marketing engines resulting in making decisions for users. Brands have moved marketing budgets from traditional media to digital platforms, particularly collaborating with influencers across social media, vlogs, YouTube, and other digital content platforms. As brands are shifting, influencers have emerged as powerful drivers of consumer behaviour. With all this shift to influencer monetization, tax implications become a major need to overlook. 

In this blog, we will discuss in detail Who is considered an Influencer, why influencers fall under GST, GST Registration requirement for influencers, GST Return for Influencers, Concept of Export of Services and Input Tax Credit, Treatment of Free Gifts/Products and many more. 

Who is considered an Influencer?

The term “Influencers” refers to anyone who uses it to build a grassroots online presence to promote products or services, resulting in changing or influencing consumer decisions. Influencers can be content creators, vloggers, or even social media personalities promoting industries including fashion, beauty, fitness, tech, travel or even social responsibilities, etc.  

Influencers income source typically includes brand collaboration, product review, sponsored posts & reels, affiliate marketing, etc. When influencers supply information of any brand or business in exchange for consideration either monetary or non-monetary, it becomes a supply of “service”. However, depending on certain factors, the tax implications for influencers changes. Let’s understand in detail why influencers fall under GST. 

Why Influencers fall under GST?

Under the GST Laws, GST shall be levied on supply of services by the service providers. The list of supply includes the supply of goods and services or both including sales, barter, exchange, transfer, license, lease, etc, as per Section 7 of CGST Act, 2017. 

Influencers earning through promotional content of any brand or business will be considered as sale (in case of monetary), barter/exchange/transfer (in case of non-monetary). Thus, it becomes essential to implement GST on influencers. However, there are some other factors as well under GST law which are important to understand the taxability of services provided by influencers.  

GST Registration Requirement for Influencer

Registering under GST for Influencers is applicable in certain conditions. These conditions includes the following:

• Influencers need to register themselves under GST in case if their annual aggregate turnover exceed the prescribed threshold i.e., ₹20 lakhs (similar to other taxpayers)
• In case of some special category states, this limit can be limited to ₹10 lakhs

GST Rate on Influencers: There is 18% GST levied on all the services provided by the Influencers. However, it can vary depending on the contract between both the parties. It is important to understand, GST and its implication is complex and varies depending on the services provided. Also, the GST rate can be changed based on the SAC code as per the service provided by them. 

GST Return for Influencers 

In India, the GST Registration is not limited to only its registration but brings its monthly/quarterly returns. For Influencers, there are some GSTR that must be filed before their due dates to avoid penalties. Following is the concise chart for influencers including the GST return, its details, periodicity and due date:

Check Due Date for January 2026 here!

Concept of Export of Service & Input Tax Credit 

Export of Service: 

In case influencers within India offer information about any brand/business located outside India then the supply is treated as “Export of Service”. It is important to note, it is only possible when the payment is received in convertible foreign exchange and the parties involved are not mere establishment of a distinct person.

In such cases, influencers have an option to file LUT and export such services without levying IGST. Also, in case of IGST, 18% GST is levied and later they may file refund under GST. 

Input Tax Credit: 

Another concept of ITC is considerable for influencers, as per Section 17(5) of CGST Act, influencers are allowed to take Input Tax Credit on inputs, capital goods, and input services used for providing their services or used or intended to be used in the course or furtherance of his business subject to blocked credit. 

Treatment of Free Gifts/Products

It is usual to receive free gifts or products by brands or businesses to influencers. This supply is treated as a barter or exchange between the influencers and brands. These gifts and products include the open market value and thus are considered to be treated under GST. The implication of GST on different products in different scenarios varies from each other. It is important to check the treatment of gst on such products before its implication. 

Conclusion

GST is a vast concept with multiple complexities. Levying any certain rate or percentage of tax is difficult in the case of influencers. Certain tax implications issues arise in the case of considering the influencers category. Also, in case of freebies (Gifts or Products) the tax treatment varies depending on the situations. However, influencers need to register themselves under GST in case their annual aggregate turnover exceeds the prescribed threshold i.e., ₹20 lakhs (similar to other taxpayers). It is advised to consult with any GST expert in order to file their GST.