India GST – ZVC India – billing currency is INR in zoom App
Zoom is GST registered in India under two different names:
- Zoom Video Communications Inc. (ZVC Inc.) -registered as a supplier of Online Information and Data Retrieval Services (‘OIDAR services’);
- Zoom Video Communications India Limited. ZVC India is a registered regular taxpayer.
ZVC India will provide services to customers whose billing currency is INR. Any currency other than INR that customers choose as their billing currency will be supplied by ZVC Inc.
Note: The information below relates to supplies made through ZVC India only.
See the FAQ for supplies made through ZVC Inc.
What is GST?
The GST (Goods and Service Tax) is the abbreviation for Goods and Services Tax. The GST is generally imposed on the sale of goods and/or services. The law is applicable to the majority of goods and services that are bought and sold for use or consumption in India. Because the consumption tax is ultimately levied on the final consumer, it can be referred to as a consumption tax.
Who must pay GST?
In general, GST is typically invoiced by the supplier who is selling goods or services and collected by the customer. As a result, the supplier must then report and remit the GST collected to the tax authorities.
Why am I being charged GST?
GST generally applies to all taxable supplies made by ZVC India to customers in India (except for some supplies made to customers in Special Economic Zones (‘SEZ’) which are not subject to GST).
There are two types of supplies: intrastate and interstate. A supplier and a customer who are in the same state are referred to as intra-state supplies, while a supplier and a customer who are located in two different states are referred to as inter-state supplies.
State GST (SGST) and Central GST (CGST) are imposed on intra-state supplies, while Integrated GST is imposed on inter-state supplies.
What are the different rates of GST that could be charged?
ZVC India charges GST at 18% on its services (unless the customer is a SEZ).
What is a GSTIN?
A Goods and Service Tax Identification Number (referred to as ‘GSTIN’) is an identity number based on the PAN of a person or business that identifies them as being registered for GST in India.
Does ZVC India have a GSTIN number?
Certainly. ZVC India has obtained GST registration in Maharashtra. On the tax invoices issued to its Indian customers, ZVC India will state its GSTIN.
Does ZVC India provide e-invoices?
The Invoice Registration Portal (“IRP”) will be used to register electronic invoices for supplies made from Business to Business (B2B) by ZVC India, including all supplies which will be made to customers in Special Economic Zones (“SEZs”). This may happen as early as April 1, 2021.
In the event that you are registered for GST, it is essential that you provide Zoom with your GST number. You may not be able to reclaim GST charged by Zoom if you do not provide your GST number to Zoom through the IRP process, as no e-invoice will be generated through the IRP process.
Please complete the following steps if you would like to provide Zoom with your GST number:
- To access the Zoom Portal, you will need to sign in.
- Then click Account Management, followed by Billing in the navigation panel.
- Select Billing Information from the drop-down list.
- There is the option to edit the VAT Number/GSTIN (which appears after the Sold to Contact Address field) under Sold to Contact.
- Make sure your GSTIN is entered and click Save.
When your GST registration status changes, it is your responsibility to notify us so that we can update our records.
Zoom will not be able to make adjustments back for any invoices that have already been issued if you do not provide your GST number up-front and provide it at a later date. In this context, it is important that as a customer you provide Zoom with your GST number in order for Zoom to issue you an input credit for the GST. ZVC India also reserves the right to recover any tax, interest or penal liability incurred by you as a result of the non- or delayed issuance of e-invoices through IRP, as a result of your failure or delay in submitting to Zoom a valid GSTIN.
How is ZVC India determining which customers GST applies to?
ZVC India applies GST to all services provided to customers by it, except where services are supplied to customers who qualify for special economic zones.
What happens if I do not have a GSTIN?
All supplies made by ZVC India to India-based customers (with the exception of customers that hold the SEZ status) will be subject to GST. In order for Zoom to claim GST as input GST for supply made to business customers, the customer must provide Zoom with a valid GSTIN for Zoom to be able to claim the GST charged.
As a result, ZVC India will consider the supply to be made to a non-business customer, when it submits its GST returns to the Indian tax authorities, if a valid GSTIN is not provided by the customer. Even though the supply is made to a business client, the customer may be unable to recover the input GST charged even if the supply is made to a business customer.
It is important to note that the customer may need to meet other requirements in order to support the input GST credit claim.
When the sale to and the bill to addresses differ, how will the customer location be determined?
If the address entered by the customer under the “Sold To” address field is located in India, then ZVC India will apply GST to the order. It is important to note that this information must be compared with other data in order to verify that the ‘Sold To’ country is accurate.
We would like to make you aware that if the ‘Bill To’ or ‘Sold To’ addresses are not aligned correctly with your GSTIN registration details, it may affect your ability to claim GST input tax credit on the tax charged by Zoom. The customer has the responsibility to ensure the “Bill To” and “Sold To” addresses they provide to Zoom align with each other as a result.
In the case where the customer has more than one location located in different states where the services are received by the customer, then the customer should enter the invoice number and address of the premises that receive the services in the ‘Bill To’ and ‘Sold To’ address fields.
What type of GST will be charged and how will it be determined?
In order to determine the application of GST, the customer’s shipping address will be considered as the location of the relevant location which has received and consumed the services and therefore will be treated as the customer location.
The CGST and SGST will be charged on the invoice if the ‘Sold To’ address is located in the same state that ZVC India is registered for GST (Maharashtra). The IGST shall be charged on the invoice in the event that the sold to address is located in a state other than the state in which ZVC India is registered for GST (Maharashtra).
For example, if a customer with a “Sold To” address in Maharashtra receives services from ZVC India, the customer will be charged the CGST and SGST. On the other hand, if the customer has a ‘Sold To’ address in Bangalore, and ZVC India provides the services in Bangalore, then the services will be subject to the Karnataka IGST.
Is there a minimum threshold transaction amount before GST is applied?
No. ZVC India’s services are subject to GST in India.
What exemptions are available?
There is an exception to this rule for customers who are located in a Special Economic Zone (SEZ) and who can (1) provide their GSTIN, (2) confirm they are in an SEZ on their Zoom account and (3) confirm that the services are used in their authorized operations. In this case, Zoom will invoice you at a zero rate of GST for any supplies it makes to them.
While the Indian tax authorities will verify any customers who have selected SEZ status but are not currently listed in an SEZ according to the Indian tax authorities, ZVC India will seek to reach any customers who have selected SEZ status but are not currently listed in an SEZ according to the Indian tax authorities. In addition, ZVC India may ask for a declaration of use of the services in the authorized operations of the Special Economic Zone/Special Economic Zone unit.
ZVC India will collect the GST on supplies made to a customer who cannot confirm their SEZ status.
Are there any special exemptions applicable for charitable organizations under which GST may not be charged?
Not at all. Taxable supplies made to charitable organizations in India will be subject to GST.
Are there any GST obligations for me as a customer?
ZVC India is a registered GST company like you, and therefore you are entitled to claim input tax credit for GST paid on invoices issued by ZVC India. Please ensure you provide ZVC India with your GSTIN information and keep a copy of ZVC India’s invoice for your records.
If you have provided Zoom with a valid GST number by April 1st, 2020, or shortly thereafter, ZVC India will issue an e-invoice to customers that have provided Zoom with a valid GST number. Unless you provide Zoom with your GST number, Zoom will not be able to report the purchase via the e-invoice mechanism and you won’t be able to claim the GST that was charged as an input credit.
Furthermore, if your ‘Bill To’ or ‘Sold To’ addresses do not match the address on your GST registration, this might impact your ability to claim the GST charged as input credit. Therefore, it is important for the customers to ensure that both their ‘Bill To’ and ‘Sold To’ addresses are in accordance with their GST registration number.
In addition, if you change the status of your SEZ, it is your responsibility to notify ZVC India as soon as possible.
What if I have a GSTIN and forget to enter it?
During the registration process, the GSTIN number may be entered at any time. It should be noted that if GST has been entered before the next invoice is issued, ZVC India will not charge GST on that invoice or any future invoices issued to you if you are in a Special Economic Zone.
Even if you are not located in an SEZ or if you have a GSTIN number, you should still make sure that ZVC India has your GSTIN number. The GSTIN can be provided at any time, and once it has been provided, it will be displayed on the invoices and future invoices issued by ZVC India. The GSTIN is entered once ZVC India assigns your GSTIN number to all future supplies. When ZVC India reports its output GST to the Indian Tax Authorities (which supports your input GST deduction), the GSTIN will be associated with all future supplies as well. The GSTIN will not be applied retroactively where the GST number has not been provided to us.
Additionally, ZVC India reserves the right to recover any tax, interest, or statutory liabilities incurred by it from you for non- or delayed issuance of e-invoices through the IRP, as a result of non- or delayed submission by you to Zoom of a valid GSTIN.
In order to receive input credits from Zoom, you may need to provide a valid GST number. If you do not provide Zoom with a valid GST number, your supply will not be reported through the e-invoicing system. Nevertheless, if you subsequently provide Zoom with a valid GST number, then all future invoices and credit notes will be registered through the e-invoicing system. It’s important to note that in this scenario, since the credit note will be reported through the e-invoicing system, the input GST credit may be reduced. It is, therefore, extremely important that your GSTIN number be provided to Zoom and that Zoom is notified whenever there is a change in your GSTIN number.
Decision tree – I am resident in India; will I be charged GST?
Disclaimer
The tax circumstances of each customer are unique. As mentioned above, the information presented here should not be regarded as tax advice, but rather as a general overview of relevant tax laws. It is important to note that Zoom cannot provide you with tax advice tailored to your individual situation. For tailored advice we recommend speaking with a professional tax advisor.