Google, Facebook, X, Edtech Cos likely to pay up to 18% IGST from October 1

Companies such as Google, Facebook, and X (formerly Twitter), along with some edtech firms, could be subject to an Integrated Goods and Services Tax (IGST) of up to 18 per cent on services provided to the government and individuals in India, effective from October 1, 2023.

This development follows a notification issued by the Central Board of Indirect Taxes and Customs, stating that these services will no longer enjoy an exemption from IGST, according to a report in The Economic Times.

A senior official commented, “This will cover overseas companies providing advertising, cloud services, music, subscription-based services, online education, and even information to all individuals and government, regardless of whether the services are used for personal or business purposes.”