Tech, ed tech firms to face 18% Integrated GST

Google, Facebook, and several ed-tech firms are likely to face an upcoming 18% Goods and Services Tax (GST) on the services they provide to both the government and private individuals. According to media reports, this change is slated to take effect from October, marking the end of their previous exemption.

These organisations will fall under the category of Online Information Database Access and Retrieval and will be obliged to pay an integrated GST. Government sources mentioned in the media have confirmed that this tax will be applicable to foreign businesses offering services like advertising, cloud services, and online education.

The GST Council has already decided to amend both central and state laws, with the changes set to begin on October 1, introducing a 28% tax on online gaming, casinos, and horse racing. This tax will be calculated based on the entrance fee paid by users, rather than the total bet amounts.

Furthermore, in compliance with the law, there will be an income tax imposed on any winnings. The GST Council has also undertaken to modify the Integrated GST Act related to the importation of goods and services, with non-compliant offshore money gaming platforms facing potential restrictions.