Tax information for India

Developers located in India

If you are located in India, it is your responsibility to determine whether you need to obtain a Goods and Services Tax Identification Number (GSTIN) and to determine any applicable tax on the sale of apps/in-app purchases to users in India. Furthermore, it is your responsibility to determine and pay applicable taxes on any Google Play service fees charged by Google to you.

Google is responsible for deducting and depositing appropriate income withholding tax (Tax Deducted at Source) and GST TCS (Tax Collected at Source), if any, on account of paid apps and games (including in-app purchases) sold by you.

For purchases made by customers in India using an alternative billing system, Google will collect from you such income withholding tax (Tax Deducted at Source) on sales of in-app purchases to customers in India that are processed on such alternative billing systems. Google will remit such taxes and levies to the appropriate authorities.

Developers located outside India

Due to tax laws in India, Google as a marketplace service provider, is responsible for determining, charging and remitting GST and equalisation levy on your behalf for all Google Play Store paid apps and in-app purchases made by customers in India.

For purchases made by customers on Google Play's billing system, Google will deduct such GST and equalisation levy from your proceeds and remit such taxes and levies to the appropriate authorities. Equalisation levy will be reflected in your earnings report as 'India equalisation levy'.

For purchases made by customers in India using an alternative billing system, Google will collect from you applicable GST and equalisation levy on sales of in-app purchases to customers in India that are processed on such alternative billing systems.

What must India-based developers do under GST law/income tax law?

Submit your PAN

You are required to submit your Permanent Account Number (PAN) to Google. Your PAN is a unique number allotted by the Income Tax Department of India. We will verify this against the information in the government database. If the fourth character is 'P', representing an individual, we need to verify whether the Aadhaar card is linked with a PAN card.

Submit your GSTIN

Developers located in India who are required to obtain a registration under GST law must provide their GSTIN to Google. This helps Google to correctly withhold applicable GST TCS on GST-taxable sales made by Indian developers and ensure the accuracy of its filings with the Indian GST department. We will verify the number against the government database. If this check fails, we will reject the form.

Why are we collecting taxes?

The government of India requires Google to comply with certain tax laws that are applicable to an e-commerce operator. This includes withholding applicable income withholding tax under Section 194O of the Income Tax Act, 1961 and the collection of applicable GST under Section 52 of the Central Goods and Services Tax Act, 2017 (read along with the relevant provisions of the State/Union Territory Goods and Services Tax laws). The above-mentioned tax provisions require Google to collect taxes from India-based entities and individuals who partner with us on the Google Play platform.

We rely on the business address/billing address provided by developers (you) to determine the appropriate taxes and comply with the tax regulations in India. We do not require a tax residency certificate for India. You're responsible for the accuracy of the tax ID/information and business address that you provide to Google.

SEZ tax status

Supplies made to SEZ customers are not subject to India GST as Google's services qualify for a zero-rated benefit under the India GST law. To avail of the zero-rating benefit, SEZ customers should submit the following documents to Google:

A Letter of Approval (LOA) issued by the relevant Development Commissioner.
A GST registration certificate clearly stating the registration type as 'SEZ Unit' or 'SEZ Developer'.
Google may request additional documentation or clarification as needed.

This guidance is for informational purposes only and should not be considered as tax advice. SEZ customers are advised to consult with their tax advisors for specific guidance on their tax obligations.