GST on online services and apps
Updated 11 October 2026
Most digital services you pay for, such as streaming subscriptions, cloud storage, app purchases, mobile plans and online courses, carry 18% GST. A few have lower rates: cab rides booked through apps are taxed at 5%, and movie tickets up to ₹100 at 5%. Sending money by UPI carries no GST at all.
GST on common online services
| Service | GST | Who pays it to the government |
|---|---|---|
| Video and music streaming, cloud storage, software subscriptions | 18% | The service provider |
| App store and in-app purchases | 18% | The app store or developer |
| Mobile, broadband and DTH plans | 18% | The operator |
| Online courses and coaching (other than recognised school, college or university courses) | 18% | The provider |
| Cab, auto and bike-taxi rides booked through apps | 5% | The app |
| Food ordered through apps | 5% on food; 18% on platform and delivery fees | The app |
| Hotel rooms booked online | 5% up to ₹7,500 a night; 18% above | The hotel, or the app for small unregistered hosts |
| Flights | 5% economy; 18% premium and business | The airline |
| Movie tickets | 5% up to ₹100; 18% above ₹100 | The cinema |
| Booking and convenience fees | 18% | The booking platform |
| Goods bought online | The rate of the goods (0%, 5%, 18% or 40%) | The seller |
| Money sent by UPI | No GST on the amount | Not applicable |
The rates for tickets, flights and hotel rooms are those in force since 22 September 2025. For goods, see GST rates.
How foreign apps charge GST
When a company outside India sells you a digital service, such as a streaming plan, cloud storage or a paid app feature, GST law calls it an OIDAR service (online information database access and retrieval). The foreign company must register in India and pay 18% IGST on what it charges Indian consumers. That is why many foreign apps show prices "inclusive of GST" or add it at checkout. If the buyer is a GST-registered business, the business pays the tax itself under reverse charge and can usually claim it back.
Cabs, food and other aggregator apps
For some services sold through an app, the law makes the app (the e-commerce operator) pay the GST, even though a driver, restaurant or delivery partner actually provides the service. This covers passenger rides, restaurant food, hotel stays offered by small hosts who are not liable to register and, since 22 September 2025, local delivery by unregistered delivery partners. A cab fare therefore shows 5% GST even when the driver is not registered. The app's own platform or convenience fee is a separate service at 18%. On 8 October 2026 the GST Council recommended a 5% rate without input tax credit for such delivery services, which applies once notified (see GST on restaurant food).
Online gaming
Online money games, where you pay or stake money hoping to win more, are banned under the Promotion and Regulation of Online Gaming Act, 2025, which came into force on 1 May 2026. Where betting, casinos, gambling and horse racing are lawful, GST on them is 40% since 22 September 2025. Free-to-play games, e-sports and social games remain legal, and in-app purchases in them carry 18%.
Is there GST on UPI payments?
No. GST is not charged on the money you send or receive by UPI, whatever the amount. In July 2025, after rumours about a tax on payments above ₹2,000, the government told Parliament that the GST Council had made no recommendation to levy GST on UPI transactions. GST applies only to fees, such as the charge a merchant pays on card payments (18% on the fee) or a convenience fee charged by an app, never to the payment itself.
Streaming plan: ₹550 + 18% GST ₹99 = ₹649
Cloud storage plan: ₹130 + 18% GST ₹23.40 = ₹153.40
Two movie tickets at ₹250 each, plus a ₹30 convenience fee per ticket: ₹560 + 18% GST ₹100.80 = ₹660.80
Cab rides: ₹1,200 + 5% GST ₹60 = ₹1,260
Total: ₹2,440 + GST ₹283.20 = ₹2,723.20. Had the tickets cost ₹100 each, GST on them would have been 5%, just ₹10 for the pair, though the convenience fees would still carry 18%.
Can you claim the GST back?
Only if you are GST-registered and the service is used for your business. Give your GSTIN when you subscribe or book so the invoice is issued in your business name; credit is then available under the usual conditions (see input tax credit). Individuals using a service personally cannot claim the GST back. To split a GST-inclusive price into its parts, use the GST calculator.