Google, Facebook may have to pay 18% GST, turn of adtech companies after online gaming

After implementing GST on online gaming, the government can impose 18 percent GST on Google, Facebook, X and other adtech companies. Let us know how your liability will be decided.

After online gaming companies, the government may soon impose 18 percent GST on Google, Facebook, X and other adtech companies. According to the notification of the Central Board of Direct Taxes i.e. CBDT, such companies will have to pay tax. This decision of the government may cause a big blow to content creators. According to the notification of CBDT, now 18 percent GST may be imposed on online earnings. Let us know in detail on which companies the sword of GST is hanging after GST on online gaming.

These companies may also have to pay GST

Recently the government has implemented GST on online gaming. After online gaming, GST can also be applied on online advertising, cloud services, music, online education i.e. edtech companies. According to this order of the Finance Ministry, now importing online services for personal use from foreign digital service provider companies will come under the purview of GST.

According to media reports, companies selling software, content streaming platforms like Netflix and Amazon, social media companies and search engine companies hosting advertisements will come under the ambit of GST. However, the responsibility of ensuring tax liability will be on the importer of the services i.e. the end beneficiary.

How will GST be decided?

The responsibility of collecting this tax and depositing it with the Government of India has been given to the exporter of the service. You can understand it like this that you are a content creator and you are earning from Facebook, YouTube or X. This income is from ad revenue, which is within the scope of OIDAR. Now in such circumstances, 18 percent GST may be imposed on it from October 1. However, in these cases, if the service exporter is a company providing platform to the content creator like X, Facebook, YouTube, then he will also be responsible for paying GST.