Media Puppies
GST on ad spend calculator
Meta and Google invoice you without GST. That does not mean there is none. Here is what marketing actually costs once reverse charge and input credit are counted.
Billed by a foreign entity, usually with no GST on the invoice.
An Indian supplier adds GST on top.
Tools, design, hosting billed from India.
Credit is only worth something against output GST.
18% is standard on advertising and marketing services.
Rupees only — this one is specific to India. Runs entirely in your browser. Nothing you type is sent to us or stored anywhere.
The part most advertisers miss
Meta and Google bill Indian advertisers from a foreign entity and the invoice usually shows no GST. Many people read that as “no tax on ad spend”. It is not — it is an import of service, and a registered recipient is expected to self-assess IGST on it under the reverse charge mechanism, then claim the same amount back as input credit.
For a registered business with taxable output that nets to zero and is purely cash flow and compliance. For a business that is unregistered, or whose output is exempt, it does not net to zero.
Where the cost actually lands
| Situation | What GST does to you |
|---|---|
| Registered, fully taxable output | A timing difference — pay now, credit later. |
| Registered, partly exempt | Part of the credit is lost and becomes real cost. |
| Registered, exempt output | The whole 18% sticks. |
| Not registered | Suppliers’ GST is unrecoverable. No reverse-charge obligation, but no credit either. |
Why this changes your ROAS target
If the tax is real cost rather than timing, your break-even moves. A brand paying an unrecoverable 18% on agency fees and tools is running a higher cost base than the one it modelled. Put the “true marketing cost” figure into the break-even ROAS calculator rather than the headline spend.
This is a planning tool, not tax advice. Rates, reverse-charge treatment and credit eligibility depend on your registration, your state and what you supply. Confirm the specifics with your CA before filing anything.
Questions
Do Meta and Google charge GST on Indian ad accounts?+
Typically the invoice comes from a foreign entity with no Indian GST, which makes it an import of service, and a registered recipient self-assesses IGST under reverse charge. Billing arrangements change, so check your own invoice rather than assuming.
Can I claim input credit on advertising?+
Generally yes where the spend is for business and you hold a valid invoice reflected in your returns. Eligibility depends on your circumstances — check with your CA.
What is the GST rate on advertising?+
18% is the standard rate on advertising and marketing services in India.
Should a small brand register just for this?+
That depends on far more than advertising — turnover thresholds, who your customers are, and whether they need a tax invoice. This shows what the advertising side of the decision is worth.
Embed this calculator
Free to use on your own site. Copy this into your page — the attribution line is the only condition.
The paragraph below the iframe is the part that matters: an iframe's contents are served from our domain, so a link inside it is not a link from your page. The paragraph is. The small script just resizes the frame to fit your column — drop it if you prefer, the fixed height still works.
Other free tools
Want someone to run the campaigns behind these numbers?
We run Meta and Google ads for Indian businesses where one customer is worth real money. You will get a straight answer on whether paid works for you — including “not yet”.
Get a free lead plan →