India Tax Help — Goods and Services Tax (GST)

Overview

The Government of India implemented the Goods and Services Tax (GST), effective July 1, 2017, raising the GST rate from 15% to 18%. The services offered by DigitalOcean are OIDAR services (Online Information and Database Access or Retrieval Services), which are subject to 18% IGST.

Customers from the state of Jammu & Kashmir (J&K) must pay GST. Prior to July 1, 2017, customers from Jammu & Kashmir (J&K) were exempt from paying service tax.

If your business has a GSTIN number, you can enter it into the GST Identification Number field on the Billing Settings page. If your business operates in more than one state and has more than one GST Identification Number, enter the GSTIN corresponding to your primary place of business, i.e. the GSTIN corresponding to the state where your registered office is situated.

If you have not entered your GSTID into your DigitalOcean account, we will charge GST and it will appear on your invoice. After you update your GSTIN on your account, you will not be charged for GST; in this case, as the service recipient, you are still responsible for paying GST under the Reverse Charge Mechanism (RCM). You can set off these payments against your output liability or claim them as a refund. You cannot claim credits for GST you paid before updating your GSTIN.

FAQ

Why is my invoice in USD? Can I get an invoice in INR?

Because USD is currently the only currency we can accept for payments, all invoices are in USD. We cannot provide invoices in INR or other currencies.

Do invoices need to be in INR for them to be GST compliant?

No. Invoices do not have to be in INR for them to be GST compliant.

Why is the GST breakdown missing from my invoice?

When you add your GSTIN to your account, we no longer charge GST and no longer display a breakdown on your invoice. Instead, you are responsible for paying the GST under the Reverse Charge Mechanism (RCM).

When your account does not have a GSTIN, then DigitalOcean will charge the GST and your invoice will include the breakdown.

Why doesn’t the term “reverse charge” appear on my invoice?

The services offered by DigitalOcean are OIDAR services. Unlike services offered by domestic companies, there is no fixed invoice format for OIDAR services, so the term “reverse charge” does not need to appear on your invoice for you to be responsible for paying it.

If you have not entered your GSTID into your DigitalOcean account, we will charge GST and it will appear on your invoice. After you update your GSTIN on your account, you will not be charged for GST; in this case, as the service recipient, you are still responsible for paying GST under the Reverse Charge Mechanism (RCM).

Can I claim credits for the GST I paid before I entered my GST ID?

Unfortunately, no. You cannot claim credits for the GST you paid before you added your GSTIN to your account.

From the date you add your GSTIN to your DigitalOcean account, you will not be charged for GST. As the service recipient, you are still responsible for paying GST under the Reverse Charge Mechanism (RCM). You can offset such payments against your output liability or claim them as a refund. Please check with your finance team/auditor on how to claim credits.

Does DigitalOcean have an HSN/accounting code?

Yes. Our invoices include a service tax number for affected customers. The HSN/SAC code of the services not mentioned in the invoice is 998439, which corresponds to “Other on-line contents n.e.c.”.

Your GST number does not look like an Indian GST. Will I still be able to get GST credit?

DigitalOcean is a non-resident OIDAR service provider, so the format of our GST number is different than the format for resident service providers. This does not affect your ability to claim GST credits or pay the GST under the Reverse Charge Mechanism (RCM).