GST for Invoices on Vultr and Digital Ocean


#1

Hello Everyone,
I recently came across one issue (maybe new knowledge) about billing system with Vultr and Digital Ocean.
I am in discussion with one my friend who is a pioneer in Server Management and running a company as well.

While in that discussion, I said, I am paying $10 per month per server without the invoice and paying through my Credit Card. He added that I will have to file a reverse GST for these transactions if not I will be caught and punished by the Indian Income Tax Department.

Is it true that we need to file Reverse GST for all payments to Vultr, Digital Ocean? Amazon is charging Tax on every month billing but Vultr doesn’t.

I am so much confused about this. Do we need to pay taxes for the invoices in Vultr?

Kindly someone help me to clarify this.


#2

Punishment for just 700 rupees. :thinking: :roll_eyes:


#3

Rs. 700 * 12 months = Rs. 8400 (18% of Rs.8400 = Rs. 1512 payable to government).
Think about the volume of bloggers.
1,00,000 bloggers multiplied by Rs.1512 = Rs. 1,51,200,000 per year :hushed::hushed::hushed:


#4

Yes its true.
One need to pay GST on Reverse basis on these services.

For instance Digitalocean charging GST on invoice, but if you provide your GST number it will not charge GST. But again you have to pay on RCM basis.


#5
  1. Digital Ocean do charge GST at 18%. Go and check their bill. You do not have to do anything

  2. Reverse Charge has been discontinued by Govt.

  3. GST Applicable only if you income from blogging is above Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)


#6

Only for purchase from unregistered persons and not on import of services.


#7

If a person makes a purchase means, there is no need to pay GST ah brother.

Is it possible to get GST number for a single person.


#8

Its bit complicated if my above post make no sense. Google RCM under GST for more details.

Yes any one can get a GST number and its free.


#9

I will suggest reading these few topics.

https://www.knowyourgst.com/question/how-to-apply-for-gstin-for-bloggers-online-tutors-who-earn-more-than-20-lakhs-yearly/3855/

https://www.knowyourgst.com/article/gst-bloggers-publishers-online-advertisements-18/

https://www.knowyourgst.com/question/gst-for-bloggers-who-are-affiliate-marketers-and-earn-commission-for-advertising-on-their-blog/3353/

https://www.knowyourgst.com/question/gst-registration-for-bloggers-earning-from-google-adsense/3655/


#10

Yes You are right, Thanks for correcting


#12

Did you registered for the GST?

  • Yes
  • No

0 voters