Collect tax in India
Learn how to use Stripe Tax to calculate, collect, and report tax in India.
In India, Stripe only supports collecting integrated goods and services tax (IGST) for online information and database access or retrieval services (OIDAR). Stripe refers to these as “digital products." To collect this tax on Stripe, you must be a remote seller without a physical presence in the country. To calculate tax in India, Stripe Tax needs the Indian state or union territory as part of the customer address information, and the reports show the province based on this information.
When to register for tax collection
See thresholds to learn about your potential tax registration obligations in India. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.
Remote sellers providing digital goods or electronically supplied services (digital products) to consumers in India have no registration threshold; they must register for IGST purposes from the first sale. Sales to business customers in India don’t trigger any tax registration obligations because non-resident businesses aren’t required to collect tax on these sales.
- Threshold: 1 transaction
- Included transactions: Business-to-consumer (B2C) sales of digital goods or electronically supplied services (digital products)
Register to collect tax
You must be a remote seller with no physical presence in India to collect this tax on Stripe.
Find more information on how to register for VAT in India on the government website.
After you’ve registered to collect tax in India, go to Registrations to add your registrations to Stripe in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions in India.
Learn more about how to add your registration in the Dashboard.
How we calculate taxes
We only support calculations for digital products (non-physical items or services that are delivered, given, or rendered electronically) in India. Stripe doesn’t calculate tax for products that don’t use a digital product tax code.
View the list of supported digital product tax codes. To calculate taxes in India, make sure that you assign a tax code to each of your products.
Report and file your taxes
Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports. Learn more about the different types of reports.
You’re responsible for filing and remitting your taxes to India. Stripe doesn’t file taxes on your behalf.