Digital economy · Apps & SaaS
App Store / Play Store revenue: GST on apps sold in India vs globally
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Facts
Revenue from apps sold through Google Play or Apple App Store has complex GST treatment:
Provisions and law
- CGST Act, Sec 13(12) | OIDAR services | GST Notification 9/2017
Analysis
Sales to Indian users: GST applies at 18%. Google/Apple collect GST on behalf of the government, they act as the "intermediary" and deposit GST directly. For most developers, Google/Apple handle this, but you must ensure they have your GSTIN to credit the GST properly. Sales to foreign users: OIDAR (Online Information and Database Access or Retrieval) service, export. 0% GST with LUT or refund route. Apple/Google may still deduct taxes at source in foreign jurisdictions, check country-wise withholding treatment. Subscription SaaS to Indian businesses: 18% GST. Issue GST invoices. Claim ITC on server costs, software tools, developer tools.
Conclusion
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