Frequently Asked Questions – India GST
What is GST?
GST is the abbreviation of Goods and Service Tax. GST is in general due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in India. It is a consumption tax because it is ultimately borne by the final consumer.
Who must pay GST?
Generally, GST is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected GST to the tax authorities.
Why am I being charged GST?
GST generally applies to all the taxable supplies made by Zoom to customers in India (there may be some supplies to customers in Special Economic Zones (‘SEZ’) that are treated without GST).
The supplies are bifurcated as intra-state supplies and inter-state supplies. Intra-state supplies are where the supplier and the customer are located in the same state whereas inter-state supplies are where the supplier and customer are located in different states.
Central GST (‘CGST’) and applicable State GST (‘SGST’) is levied on intra-state supplies, whereas Integrated GST is levied on inter-state supplies.
What are the different rates of GST that could be charged?
The services provided by Zoom are subject to GST at 18% (unless a customer has SEZ status).
What is a GSTIN?
A Goods and Service Tax Identification number (referred to as ‘GSTIN’) is a unique 15-digit PAN based identification number that that identifies a person/entity as being registered for GST in India.
Does Zoom have a GSTIN number?
Yes. Zoom is registered for GST in the state of Maharashtra. Zoom will state its GSTIN on the tax invoices issued to its customers in India.
How is Zoom determining which customers GST applies to?
GST applies to all services provided by Zoom to customers except where services are supplied to customers that have SEZ status.
How do I enter my GSTIN?
To enter the GSTIN, please follow these steps:
- Sign in to the Zoom Portal.
- Under Account Management, click Billing.
- Click the Billing Information
- Under Sold to Contact, choose to edit the VAT Number/GSTIN (which appears after the Sold to Contact Address field).
- Enter your GSTIN and save.
You are required to notify us if there is a change in your GST registration status.
What happens if I do not have a GSTIN?
GST will be levied on all supplies made by Zoom to customers in India (expect customers that have SEZ status). For supplies made to business customers the customer must provide a valid GSTIN to Zoom to be able to recover the GST charged as input GST.
If a valid GSTIN is not provided, Zoom will treat the supply as a being made to a non-business customer when it submits its GST returns to the Indian tax authorities. The impact of this is that even if the supply is made to a business customer, the customer may be unable to recover the GST charged as input GST.
Please note, there may be other requirements required to be met by the customer to support input GST deduction.
How will the customer location be determined where the bill to and the sold to addresses are different?
Zoom will apply GST if the location of the “Sold To” contact address entered by the customer is in India. This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
Therefore, the customer should provide the address of the location on which the bill needs to be raised in the ‘Sold To’ address field.
Where the customer has multiple premises located in different states where the services are received by the customer, the customer should provide the GSTIN and address of the premises receiving the services in the ‘Sold To’ address field.
What type of GST will be charged and how will it be determined?
The ‘Sold To’ address provided by the customer will be considered as the relevant location which has received and consumed the services and will therefore be treated as the customer location for determining the application of GST.
If the ‘Sold To’ address is in the same state where Zoom is registered for GST (Maharashtra) CGST and SGST shall be levied on the invoice. If the sold to address is in a different state than where Zoom is registered for GST (Maharashtra), IGST shall be levied on the invoice.
As an example, if a customer with a ‘Sold To’ address in Maharashtra receives services from Zoom CGST and SGST shall be charged. However, if a customer with a ‘Sold To’ address in Bangalore receives the services of Zoom in Bangalore, Karnataka IGST shall be charged.
Is there a minimum threshold transaction amount before GST is applied?
No. GST applies to all sales of Zoom’s services in India.
What exemptions are available?
If you are located in a Special Economic Zone (SEZ), and you (1) provide your GSTIN and (2) confirm you are located in an SEZ in your Zoom account, then the supplies that Zoom makes to you will be taxable at the zero rate of GST.
Zoom will verify SEZ status with the Indian Tax Authorities when submitting its GST returns and will contact any customers that have selected SEZ status but are not currently listed in an SEZ according to the Indian tax authorities.
Where a customer cannot confirm SEZ status then Zoom will collect GST on supplies made.
Are there any special exemptions applicable for charitable organizations under which GST may not be charged?
No. GST will be charged on all taxable supplies made to charitable organizations in India.
Are there any GST obligations for me as a customer?
If you are registered for GST and you want to claim the input tax credit for the GST paid on invoices issued by Zoom, you should ensure that you provide Zoom with your GSTIN and keep a copy of Zoom’s invoice for your records. In addition, you are responsible for informing Zoom of a change in your SEZ status.
What if I have a GSTIN and forget to enter it?
The GSTIN number can be entered at any time. If entered before the next invoice, Zoom will not charge GST on the next invoice or future invoices issued to you if you are in an SEZ.
If you have a GSTIN number and are not located in an SEZ you should still make sure that your GSTIN is provided to Zoom. The GSTIN can be entered at any time and once provided it will show on the next invoice and future invoices issued by Zoom. Once the GSTIN is entered, Zoom will also report all future supplies against your GSTIN number when reporting its output GST to the Indian Tax Authorities (which is required to support your input GST deduction).
Decision tree – I am resident in India; will I be charged GST?
Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.