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information Goods and Services Tax (GST) on Domain Names in India

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anantj

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The Indian government recently implemented a historic major overhaul of the tax system by implementing the Goods and Services Tax (GST). With the advent of GST, the earlier taxation regime has been replaced with a relatively simpler (albeit complex in its own right) tax structure. While I'll not get into details of the GST itself, there is a material and direct impact on Domain names and similar digital products (i.e. Hosting, SSL certs etc):

The earlier tax rates on Domain names was 15% + some cess. Now, under GST, the tax on Domain names will be 18% which effectively increases the price of domain names for buyers from India. GoDaddy has already implemented this I think (they don't break out the taxes so I'm not sure). Similarly, BigRock has split their operations between PDR for registrants from outside India and Directi for registrants from within India.

Long term, expect cost of domain investment to only go up in India as cumulative effect of GST makes an impact.
 
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ramkumaritrvs

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It's time to switch abroad services like namesilo.com, epik.com to save 18% fees.
 

anantj

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It's time to switch abroad services like namesilo.com, epik.com to save 18% fees.
Indeed. But GoDaddy cannot fully be avoided if you're an auctions user as they have some of the largest auction inventory.
 

siya

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It's time to switch abroad services like namesilo.com, epik.com to save 18% fees.
It's a good thought but we cannot avoid GoDaddy and BigRiock because they are the largest auction inventory in india with almost all domains which we prefer.
 

Shailendra Mishra

Shailendra MishraTop Contributor
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For some strange reason Godaddy India is charging 12% GST not 18%.
Furthermore, you can avoid GST if you buy from Godaddy US in USD. Isnt it?

My question: Forget domain registration for a while. Do you charge GST on domain sales of your own. especially high (end use) sales?
 

anantj

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For some strange reason Godaddy India is charging 12% GST not 18%.
Furthermore, you can avoid GST if you buy from Godaddy US in USD. Isnt it?
You need a valid US Address and payment method to register it from GD US in USD

My question: Forget domain registration for a while. Do you charge GST on domain sales of your own. especially high (end use) sales?
You should
 

Shailendra Mishra

Shailendra MishraTop Contributor
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You should

At what rate? Isnt it an export if you are selling to someone outside India (totally valid foreign sale) GST applies to buyers from India only.
 

Joe N

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If the GST in India works anything like the GST in Canada, then businesses who collect and submit (to the government) GST on their sales may be able to get that money back in tax credits (as long as the domain is used in taxable business operations).
 

Joe N

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For some strange reason Godaddy India is charging 12% GST not 18%.
Furthermore, you can avoid GST if you buy from Godaddy US in USD. Isnt it?

My question: Forget domain registration for a while. Do you charge GST on domain sales of your own. especially high (end use) sales?

Again, if the rules are similar to Canadian rules, you are only required to charge GST on your sales if you make a certain amount of income per year in taxable sales.
 
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@Joe Nichols it also makes a difference if you're sales are to Canadian buyers or other times it's even province specific, depending on the tax... I am from Canada, but 99.9% of my sales are to people around the world.. so I don't need to charge tax.. luckily
 
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anantj

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At what rate? Isnt it an export if you are selling to someone outside India (totally valid foreign sale) GST applies to buyers from India only.
Not a certified CA so you will need to consult with a GST Expert for advice on when to charge GST
 

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