GST on Web Hosting in India (18% Explained)

The short answer — 18% GST on hosting

Yes — the short answer in full: web hosting is a taxable service at 18% GST in India, classified under SAC code 9983 (telecommunications, broadcasting and information supply services). The 18% applies whether you buy from an Indian host or a foreign one; the difference is paperwork.

For GST-registered businesses, that 18% is not a cost — it is input tax credit waiting to be claimed. For individuals, it is simply part of the price. The sections below cover the SAC classification, the ITC mechanism, reverse charge on foreign hosts, and how compliant invoices are issued — the hosting plans themselves all bill the same way.

Why hosting is a taxable service — SAC codes

Why hosting is a taxable service — SAC codes. Do the change this heading names on one site first, then check it in a private browser window or in the mail client, depending on the topic. Change one setting at a time, and undo it if the result is wrong before you try the next. If you want the Jaipur desk to look with you, email support@webji.services — that mailbox is staffed 24/7 in Hindi and English. Phone +91 141 4941811 is business hours only.

Input tax credit for businesses — how it works

Input tax credit is where GST-registered businesses recover the cost. Mechanism. You pay 18% GST on hosting, claim it as ITC in your GSTR-3B, and it offsets your output GST liability — effectively reducing the hosting cost by the credit amount when you have output tax to set it against.

Conditions. A GST-compliant invoice carrying your GSTIN (not just the seller's), the supplier having deposited the tax (visible in your GSTR-2B match), and the service being used in the course of business — hosting for a business site qualifies squarely. Practice points. Add your GSTIN to your hosting profile so invoices issue correctly from day one (WebJi® clients set this in the client area and reissue past invoices). Reconcile against GSTR-2B monthly, and never discard invoices — credit claims can be queried for years.

Buying from foreign hosts — reverse charge explained

Buying from foreign hosts — reverse charge explained. Do the change this heading names on one site first, then check it in a private browser window or in the mail client, depending on the topic. Change one setting at a time, and undo it if the result is wrong before you try the next. If you want the Jaipur desk to look with you, email support@webji.services — that mailbox is staffed 24/7 in Hindi and English. Phone +91 141 4941811 is business hours only.

GST on domains vs hosting vs email

Add your GSTIN in the client area before you pay if you need input credit. Every WebJi® invoice is in INR and shows GST at 18%. Prices on the plan tables are exclusive of that GST.

How WebJi® issues GST-compliant invoices

Add your GSTIN in the client area before you pay if you need input credit. Every WebJi® invoice is in INR and shows GST at 18%. Prices on the plan tables are exclusive of that GST.

Special cases — exports and zero-rated services

Special cases: exports and zero-rated supplies. If you are exporting services — your Indian business serving foreign clients. The export itself is zero-rated: either with a Letter of Undertaking (LUT), letting you export without charging GST while still claiming ITC on inputs like hosting, or by charging IGST and claiming a refund.

Your hosting bill is an input to that export activity: with an LUT in place, the 18% you pay on hosting remains creditable or refundable — one more reason clean invoices matter. Individuals and non-registered buyers still pay the 18%; registration status changes what you can claim, not what is charged. As always, classification edge cases — bundled services, marketplaces, coupons affecting taxable value (GST applies to the discounted amount) — get confirmed with your CA.