India GST - ZVC India - billing currency is INR
Please note that Zoom has two GST registrations in India:
- Zoom Video Communications Inc. (ZVC Inc.) -registered as a supplier of Online Information and Data Retrieval Services (‘OIDAR services’); and
Zoom Video Communications India. (ZVC India) - registered as a regular taxpayer.
Customers that select their billing currency as INR will be supplied through ZVC India. Customers that select their billing currency as any currency other than INR will be supplied through ZVC Inc.
Note: The information below relates to supplies made through ZVC India only.
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 ZVC India 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 ZVC India 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 identifies a person/entity as being registered for GST in India.
Does ZVC India have a GSTIN number?
Yes. ZVC India is registered for GST in the state of Maharashtra. ZVC India will state its GSTIN on the tax invoices issued to its customers in India.
Does ZVC India provide e-invoices?
On or shortly after April 1, 2021, ZVC India may be required to provide e-invoices through the Invoice Registration Portal (“IRP”) for any Business to Business (B2B) supplies including any supplies to a customer in an SEZ.
If you are a GST registered customer, it is essential that you provide your GST number to Zoom. If you do not provide your GST number to Zoom, no e-invoice will be generated through the IRP process and you may not be able to reclaim GST charged to you by Zoom.
To provide your GST number to Zoom, please complete the following steps:
- Sign in to the Zoom Portal.
- In the navigation panel, click Account Management, then Billing.
- Click the Billing Information tab.
- 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.
If you have not provided your GST number and you provide this at a later date, Zoom will not go back and adjust for any invoices previously issued. As such, it is essential that as a customer you provide Zoom with your GST number if you want to recover the GST as an input credit. Further, ZVC India reserves the right to recover any tax, interest or penal liabilities suffered for non or delayed issuance of e-invoices through the IRP due to non or delayed submission of a valid GSTIN by you to Zoom.
How is ZVC India determining which customers GST applies to?
GST applies to all services provided by ZVC India to customers except where services are supplied to customers that have SEZ status.
What happens if I do not have a GSTIN?
GST will be levied on all supplies made by ZVC India 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 claim the GST charged as input GST.
If a valid GSTIN is not provided, ZVC India 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 an input GST credit claim.
How will the customer location be determined where the bill to and the sold to addresses are different?
ZVC India 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.
Please note, if the ‘Bill To’ or ‘Sold To’ address are not aligned with your GSTIN registration details, this may impact your ability to avail GST input tax credit on the tax charged by Zoom. As such, it is your responsibility as a customer to make sure the “Bill To” and “Sold To” address you provide to Zoom align.
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 ‘Bill To’ and ‘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 ZVC India 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 ZVC India 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 ZVC India CGST and SGST shall be charged. However, if a customer with a ‘Sold To’ address in Bangalore receives the services of ZVC India 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 ZVC India’s services in India.
What exemptions are available?
If you are located in a Special Economic Zone (SEZ), and you (1) provide your GSTIN, (2) confirm you are located in an SEZ in your Zoom account and (3) you confirm that the services are required for use in your authorized operations, then the supplies that Zoom makes to you will be taxable at the zero rate of GST.
ZVC India 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. ZVC India may further request for a declaration of use of the services in the authorized operations of the SEZ/ SEZ unit.
Where a customer cannot confirm SEZ status then ZVC India 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 ZVC India, you should ensure that you provide ZVC India with your GSTIN and keep a copy of ZVC India’s invoice for your records.
On or shortly after April 1 2021, ZVC India will issue e-invoices where required for supplies to customers who have provided Zoom with a valid GST number. If you don’t provide your GST number, Zoom will not be able to report the supply through the e-invoicing mechanism and you will not be able to claim the GST charged as input credit.
In addition, if your ‘Bill To’ or ‘Sold To’ address are not aligned with your GST registration, this could impact your ability to claim the GST charged as input credit. Customers should therefore ensure that both the ‘Bill To’ and ‘Sold To’ address are aligned with the GST registration.
In addition, you are responsible for informing ZVC India 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, ZVC India 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 ZVC India. The GSTIN can be entered at any time and once provided it will show on the next invoice and future invoices issued by ZVC India. Once the GSTIN is entered, ZVC India 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). No retrospective adjustments will be made where you have not provided your GST number.
Further, ZVC India reserves the right to recover any tax, interest or penal liabilities suffered for non or delayed issuance of e-invoices through the IRP due to non or delayed submission of a valid GSTIN by you to Zoom.
Please note, if you do not provide a valid GST number to Zoom your supply will not be reported through the e-invoicing system and you may not be able to claim input credits. However, if you subsequently provide a valid GST number to Zoom all future invoices and credit notes will be reported through the e-invoicing system. In this scenario as the credit note will be reported through the e-invoicing system this may reduce your input GST credits. As such, it is essential that you ensure your GSTIN number is provided to Zoom and that you notify Zoom of any changes to your GSTIN.
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.
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