GST Applicability & Tax Rates on Digital Marketing
GST Applicability: Digital marketing services are considered services and, therefore, are subject to GST in India. GST is applicable to all businesses providing digital marketing services if their annual turnover exceeds the prescribed threshold limit for GST registration. As of my last update, the threshold limit for GST registration varied depending on the type of business and the state in which it operates, but it was generally set at ₹20 lakhs for most service providers.
Tax Rate for Digital Marketing Services: Digital marketing services typically fall under the category of "Online Information and Database Access or Retrieval Services (OIDAR)." The GST rate for OIDAR services was 18% at the time of my last update. However, it's essential to check the GST rates applicable at the current date, as they might have changed since then.
Reverse Charge Mechanism (RCM): In some cases, the liability to pay GST might be on the recipient of the digital marketing services rather than the service provider. This is known as the Reverse Charge Mechanism (RCM). RCM is applicable when the service provider is located outside India, and the recipient of the services is in India.
Place of Supply Rules: The GST liability can also depend on the place of supply rules. The place of supply rules can vary based on whether the recipient is a registered business, an unregistered individual, or located outside India.
Please note that the above information is based on the GST laws and rates as of September 2021. Tax laws are subject to change, and rates may have been updated since then. It's advisable to consult with a qualified tax professional or refer to the official website of the Goods and Services Tax Network (GSTN) or the Central Board of Indirect Taxes and Customs (CBIC) for the most up-to-date and accurate information regarding GST applicability and rates for digital marketing services in India
Income Tax Expert at TAXAJ
TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else visit TAXAJ
Watch all the Informational Videos here: YouTube Channel
TAXAJ Corporate Services LLP
Address: 1/11, 1st Floor, Sulahkul Vihar, Old Palam Road, Dwarka, Delhi-110078
Related Articles
GST Applicability and Tax Rates on Social Media Marketing in India
Introduction: Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It has replaced various indirect taxes and aims to create a unified tax system. In recent years, social media marketing ...GST Applicability & Tax Rates on Export of Goods & Service
GST Applicability & Tax Rates on Export of Goods & Service As of my last knowledge update in September 2021, I can provide you with information on the applicability of Goods and Services Tax (GST) and tax rates on the export of goods and services in ...GST Applicability & Tax Rates on Health Care
GST for Health Care The 47th GST Council meeting has clarified that doctors’ services provided in the form of Assisted Reproductive Technology (ART) or In vitro fertilisation (IVF) will be exempt from GST, as they fall under the definition of ...GST Applicability & Tax Rates on Consulting Services
Introduction The Goods and Services Tax (GST) is a value-added tax system that was introduced in India on July 1, 2017, replacing the previous complex tax structure. GST is designed to streamline the taxation process and make it more transparent and ...GST Applicability & Tax Rates on Construction
Introduction The introduction of the Goods and Services Tax (GST) in India in 2017 marked a significant shift in the country's tax regime. This comprehensive indirect tax reform aimed to streamline the taxation system and promote ease of doing ...