As of July 1, 2017, India requires non-resident entities like Twilio Sendgrid (“Twilio”) to collect Goods and Services Tax (GST) for any Online Information Database Access and Retrieval (OIDAR) services (otherwise known as “Electronically Supplied Services” or “ESS”) sold to non-registered GST customers in India. This guide covers how Twilio charges GST and what services are taxable.
Notice: Twilio services may be subject to tax in various countries, states and/or localities. To see if Twilio collects taxes in your country, please see the Billing section of our Support Help Center.
The following topics are discussed in this guide. Click a topic to skip directly to this information:
- Goods and Services Tax (GST) overview.
- When will Twilio start charging GST in India?
- How can I be tax exempt for GST?
- I am a business, but do not have a GST number. I am not required to register for GST since my business falls under the required sales threshold for registering
- How is GST determined?
- What rate is GST charged in India?
- I forgot to enter my GST number, but am a GST registered B2B customer - Can I get a refund?
Goods and Services Tax (GST) overview
India passed legislation effective July 1, 2017, requiring non-resident entities selling Online Information Database Access and Retrieval (OIDAR) services to collect and remit an 18% Goods and Services Tax (GST) on its sales to non-registered GST customers located in India. Non-residents are only required to apply GST on Business to Customer (B2C) transactions. Business to Business (B2B) transactions will not be charged GST if a valid GST number is provided by the B2B customer.
When will Twilio start charging GST in India?
Twilio will begin collecting GST on services sold to customers located in India starting in September 2023.
GST is assessed and applied to your account at the start of the month for the previous month’s usage. For example, you will be charged GST for your January usage in February.
How can I be tax exempt for GST?
B2B customers with a valid GST number will not be taxed on our end. In order to be exempt, B2B customers need to submit their GST number to support by filling a ticket. However, B2B customers are still responsible for the GST and should self-assess the GST through the reverse charge mechanism on their India GST return.
I am a business, but do not have a GST number. I am not required to register for GST since my business falls under the required sales threshold for registering.
The GST laws for nonresidents are designed to capture GST from B2C consumers and from B2B consumers that fall under the sales threshold. Unless a B2B customer can provide a valid GST number, they will be considered a B2C and the transaction will be subject to tax. Non-residents are not required to tax B2B customers with valid GST numbers since B2B customers are supposed to self-assess the GST on their end.
How is GST determined?
GST is applicable based on the type of products or services that are purchased. We have determined that most of Twilio Sendgrid's products & services are subject to GST.
What rate is GST charged in India?
Twilio's services will be subject to the 18% GST rate as determined by the India Taxation Office.
I forgot to enter my GST number, but am a GST registered B2B customer - can I request a refund?
If you are a B2B customer with a valid GST number in India, please contact our Support team for a credit of the GST amount charged within 90 days of the initial charge. For invoices issued in closed periods, we will credit the GST charged in the following month’s invoice.