India

Effective since 1 of July 2017.

As per IGST Act, on online information and database access or retrieval services provided B2C or to non-taxable entities by foreign companies are subject to Indian GST if the location of the customer is India.


Standard rate
18 %


VAT Reduced rate
There is no reduced rate established for digital sales.


VAT calculation peculiarity
VAT= Total revenue * 19/119


Threshold
Revenue threshold is €0 for digital services.


Pieces of evidence
The person receiving DIGITAL Service would be deemed to be located in India if any 2 of the following non-contradictory conditions are satisfied:

  1. 1. The location of address provided by the service recipient via the Internet is India.
  2. 2. The Credit/Debit/any other card by which the service recipient settles the payment has been issued in India.
  3. 3. The service recipient’s billing address is in India.
  4. 4. The service recipient’s bank in which the account is used for payment is maintained is in India.
  5. 5. The country code of the subscriber identity module (SIM) card used by the service recipient is in India.
  6. 6. The location of the service recipient’s fixed land line, through which the service is received by the person, is in India.


E-services list

  • website supply, web-hosting, distance maintenance of programmes and equipment
  • supply of software and updating thereof
  • supply of images, text and information and making available of databases
  • supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events
  • supply of distance teaching


Registration procedure
Company need to fill a single registration in Form GST REG-10, then present this form at principal commissioner of central tax, Bengaluru west.

The average time taken to obtain GST Certificate is about 5 - 10 working days.  E-merchant can instead appoint a tax agent which will bear all GST obligations instead of the merchant.


VAT returns filling date
Digital service providers will have to file return monthly by 20th of the month succeeding the month for which return is filed as well as an annual return, amounting to 13 returns per annum.

The return is to be filed even if there is no business activity for any period under tax (Nil return in such cases).

No Input Tax Credit is available.

The return can be filed only after payment of due taxes and any other amounts due.

Return for current period can’t be filed before filing return for the previous tax period.


VAT payment date
Due date for the period July-December 2017 for Non-Resident foreign taxable person is 31 st January 2018.


Penalties
If GST Returns are not filed within time, a company will be liable to pay interest and a late fee.

Interest is 18% per annum. It has to be calculated by the tax payer on the amount of outstanding tax to be paid. Time period will be from the next day of filing to the date of payment.

As per latest update, late fees for GSTR-5A earlier reduced stands withdrawn. So, the Late fee of Rs 200 per day (or Rs. 100 per day in case of NIL return filing) shall apply with effect from 7th March 2018.