GST in India guide

Indian GST for digital service providers

Digital services provided to consumers resident in India are subject to 18% GST. Indian registered providers of digital services must GST register once their annual sales raise above INR 10 lakh.  Non-resident providers selling to Indian consumers must register immediately prior to their first sale.

List of digital services that are the subject of Indian GST

• Streaming/downloads of music, e-books, films etc.;
• Cloud-based or downloadable software;
• Membership fees to online sites, dating portals etc.;
• Online gambling services;
• Online advertising.

VAT rates

The GST rates for goods and services are 0.25%, 3%, 5%, 12%, 18% and 28%. Some goods and services are exempt from tax, while items of gold and precious stones attract lower GST rates of 0.25% and 3%, respectively.

Late – registration penalties

A penalty of INR 20,000 may apply for failure to obtain a registration