India GST
IMPORTANT: Information in this article does not constitute tax, legal, or other professional advice. If you have questions, please contact your tax, legal, or other professional advisor.
What is Goods and Services Tax (GST)?
Goods and Services Tax (GST) is a broad-based consumption tax levied on the import of goods and certain services in India. In other countries, GST is known as the Value-Added Tax or VAT.
Why is WP Engine collecting India GST?
WP Engine was recently notified by the India tax authorities of our requirement to register for and charge GST to consumer customers located in India under their OIDAR rules.
Section 2(17) of the Integration Goods and Services Tax (IGST) Act, 2017, defines OIDAR (Online Information Database Access and Retrieval) as services whose delivery is mediated by information technology over the Internet. Website hosting and cloud services are covered by the definition of OIDAR services.
Does India GST apply to me?
WP Engine will charge GST to customers with an India address beginning May 1, 2021. GST will not apply to India business customers (B2B) with a valid GST Number on file.
Please note that WP Engine will charge GST on sales to all India customers who have not provided their GST Number, by default.
How do I obtain an India GST Number (GSTIN)?
Businesses must register with the India tax authorities to obtain a GST Number. For information on how to register, please visit:
https://services.gst.gov.in/services/quicklinks/registration
How do I enter my India GST Number (GSTIN) into the User Portal?
To provide your India GST Number, login via the User Portal and click the “Update Contact Info” dropdown caret. Once here, enter your India GST Number in the “VAT/GST ID” field and click Update.
How does WP Engine calculate the GST amount for each sale?
If WP Engine determines that India GST should be collected, WP Engine will charge the India GST rate of 18%.
Will I be retroactively charged for GST?
WP Engine will not retroactively charge customers GST, but will charge GST beginning May 1, 2021 on a prospective basis. GST will be based on the invoice date.
Example 1
If an annual subscription renews and is invoiced on April 30, 2021, GST will not be included on that invoice. However, the following annual renewal date of April 30, 2022 will include GST.
Example 2
If an annual renewal date is August 1, 2021, the renewal invoice will include GST for the August 1, 2021 – July 31, 2022 period and no additional GST will be added for the retroactive period of August 1, 2020 – July 31, 2021.
