India Tax Information

As of 1 July 2017, DigitalOcean charges a 18% Goods and Services Tax (GST) to customers with a tax location in India.

This complies with the Government of India’s regulations on OIDAR services (Online Information and Database Access or Retrieval Services).

If you are a business customer of DigitalOcean with a valid GSTIN in India, you can add it to your team on the Billing page’s Settings tab. Adding your GSTIN removes tax charges from your invoice, but you are still subject to the reverse charge mechanism (RCM). If you have a valid GSTIN but don’t add it to your team, your invoice includes tax charges.

If your business operates in more than one state and has more than one GST Identification Number, enter the GSTIN corresponding to your primary place of business (the GSTIN corresponding to the state where your registered office is situated).

Tax Deducted at Source (TDS)

Tax deduction at source (TDS) is a method of collecting income tax in India. As a service-providing entity based outside of India, DigitalOcean complies with TDS by offering credits in lieu of payments made towards our PAN (AAFCD8404R) via the TDS system.

When you submit the TDS refund claim, you must submit your registered TAN along with Form 16. Once per quarter, when the claim is verified on TRACES, we return 10% of your payments as credits to your DigitalOcean team.

Frequently Asked Questions about Taxes in India

Do invoices need to be in INR for them to be GST compliant?

No. Invoices do not have to be in INR for them to be GST compliant.

Why is the GST breakdown missing from my invoice?

When you add your GSTIN to your team, we no longer charge GST and no longer display a breakdown on your invoice. Instead, you are responsible for paying the GST under the Reverse Charge Mechanism (RCM).

When your team does not have a GSTIN, then DigitalOcean charges the GST and your invoice includes the breakdown.

Why doesn’t the term “reverse charge” appear on my invoice?

The services offered by DigitalOcean are OIDAR services. Unlike services offered by domestic companies, there is no fixed invoice format for OIDAR services, so the term “reverse charge” does not need to appear on your invoice for you to be responsible for paying it.

If you have not entered your GSTID into your DigitalOcean team, we charge GST and it appears on your invoice. After you update your GSTIN on your team, you are not be charged for GST; in this case, as the service recipient, you are still responsible for paying GST under the Reverse Charge Mechanism (RCM).

Can I claim credits for the GST I paid before I entered my GST ID?

Unfortunately, no. You cannot claim credits for the GST you paid before you added your GSTIN to your team.

From the date you add your GSTIN to your DigitalOcean team, you are not be charged for GST. As the service recipient, you are still responsible for paying GST under the Reverse Charge Mechanism (RCM). You can offset such payments against your output liability or claim them as a refund. Check with your finance team/auditor on how to claim credits.

Does DigitalOcean have an HSN/accounting code?

Yes. Our invoices include a service tax number for affected customers. The HSN/SAC code of the services not mentioned in the invoice is 998439, which corresponds to “Other on-line contents n.e.c.”.

Your GST number does not look like an Indian GST. Can I still get GST credit?

DigitalOcean is a non-resident OIDAR service provider, so the format of our GST number is different than the format for resident service providers. This does not affect your ability to claim GST credits or pay the GST under the Reverse Charge Mechanism (RCM).

Frequently Asked Questions about Taxes

How is my tax location determined?

Your tax location is typically based on your account address, which is initially set to the payment address of your primary payment method when you sign up. In some locations, we are required by law to consider other account details, like other payment addresses or IP addresses.

How can I change my tax location?

You can update your account address and view your account's tax location and rate at any time on the Billing page's Settings tab. If you've set your account address correctly but your account's tax location is not what you expect, contact support for help.

Why is my invoice in USD? Can I get an invoice in another currency?

USD is the only currency we accept for payments, so all invoices are in USD. We cannot provide invoices in other currencies. Learn more about invoices.