# Do You Owe GST on Zoom, Figma, or Google Workspace?

**Category:** GST | **Published:** 2026-06-26 | **Last reviewed:** 2026-06-26 | **Author:** Mrs. Swapna Patel

When a GST-registered business in India buys a service from a foreign supplier, such as Zoom, Figma, Google Workspace, or an overseas consultant, that purchase is an import of services under Section 2(11) of the IGST Act. The foreign supplier charges no Indian GST, so Section 5(3) of the IGST Act and Notification 10/2017-IGST(Rate) move the tax to the buyer under the reverse charge mechanism. The recipient pays IGST (18% on most digital and professional services) in cash from the electronic cash ledger, raises a self-invoice under Section 31(3)(f), and can then claim that IGST back as input tax credit if the service is otherwise eligible. The liability sits with the Indian buyer, so an unbilled foreign-software subscription is a common reverse-charge gap at audit.

> **Myth:** Foreign software has no Indian GST, so a Zoom or Figma subscription is a GST-free expense.
>
> **Fact:** Under [Section 5(3) of the IGST Act](https://www.indiacode.nic.in/handle/123456789/2367) and Notification 10/2017-IGST(R), a GST-registered business that imports a service pays IGST itself under reverse charge.

## Do I owe GST on Zoom, Figma, or Google Workspace?

> **Short answer:** Yes, if you are a GST-registered business. Under [Section 5(3) of the IGST Act](https://www.indiacode.nic.in/handle/123456789/2367), buying a service from a foreign supplier is an import of services, and you pay IGST on it yourself under reverse charge.

The foreign vendor does not register for or charge Indian GST, so the tax does not disappear, it moves to you. This is the same reverse-charge logic that applies to a goods transport agency or an advocate, applied to inter-state and imported supplies. For the term itself, see [what the reverse charge mechanism is](/answers/reverse-charge-mechanism-rcm-gst).

- Common triggers: SaaS subscriptions (Zoom, Figma, Canva, Adobe), cloud hosting, overseas consultants, and foreign ad platforms.
- The rate is the IGST rate for that service, 18% on most digital and professional services; verify the current rate for your specific service against the [CBIC](https://cbic-gst.gov.in/) schedule, as slabs change.
- Why it matters: the unpaid-tax default is yours, not the vendor's, so a missed subscription becomes your interest and penalty at audit.

## What is "import of services" under GST?

> **Short answer:** Per [Section 2(11) of the IGST Act](https://www.indiacode.nic.in/handle/123456789/2367), a supply is an import of services when the supplier is outside India, the recipient is in India, and the place of supply is in India, the mirror image of the export test.

- Supplier located outside India.
- Recipient located in India.
- Place of supply in India (for most services, the recipient's location).
- Meet all three and the purchase is an import of services, taxable under reverse charge, even though no Indian tax appeared on the vendor's invoice.

## How do you pay and reclaim RCM on foreign software?

> **Short answer:** Pay the IGST in cash through the electronic cash ledger ([Section 49(4)](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) bars using existing credit), raise a self-invoice under [Section 31(3)(f)](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act), then claim the tax back as input tax credit if the service is eligible.

- Pay in cash: RCM cannot be set off against accumulated input tax credit; it is a real cash outflow in the month of the expense.
- Self-invoice: the foreign vendor issues no GST invoice, so you raise your own under Section 31(3)(f) to support the credit.
- Then reclaim: the IGST paid becomes input tax credit under Section 16, unless the service is blocked under Section 17(5).
- Report it in GSTR-3B in the same period, both as a liability and as the credit claim.

**[Raise a compliant self-invoice for an imported service in 60 seconds](https://hrareceipt.in/pakka-bill)**

## Does a freelancer below ₹20 lakh still owe it?

> **Short answer:** A freelancer who is not GST-registered and buys foreign software as a final consumer generally does not self-account for RCM; the obligation bites once you are registered, or where the overseas supplier of an online service must itself register under the OIDAR rules.

- If you are registered (voluntarily or because you crossed the [registration threshold](/answers/aggregate-turnover-aato-gst-registration-threshold)), the reverse charge on imported services applies to you.
- For a purely personal, unregistered consumer of an online service, the foreign supplier is the one required to register and pay under the OIDAR regime, not you.
- Why it matters: registering for GST to issue a [pakka bill](/pakka-bill) to your own clients also switches on your reverse-charge duty on the foreign tools you use.
- For which domestic supplies trigger RCM for a small business, see [GST reverse charge for a small business](/answers/gst-reverse-charge-rcm-small-business).

**[See the full reverse-charge decision flow](https://hrareceipt.in/atlas/reverse-charge-rcm-smb-decision-flow)**

## Primary sources

- [Section 5(3), Integrated Goods and Services Tax Act 2017 — India Code](https://www.indiacode.nic.in/handle/123456789/2367) — Reverse charge on inter-state and imported supplies; the recipient pays the IGST.
- [Section 2(11), IGST Act 2017 (import of services) — India Code](https://www.indiacode.nic.in/handle/123456789/2367) — Supplier outside India, recipient in India, place of supply in India.
- [Notification 10/2017-Integrated Tax (Rate) — CBIC](https://cbic-gst.gov.in/) — Import of services notified for reverse charge in the hands of the recipient.
- [Section 31(3)(f) and Section 49(4), CGST Act 2017 — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) — Self-invoice on the inward RCM supply; the tax is paid from the electronic cash ledger.

## Related

- [What is the reverse charge mechanism (RCM) in GST?](https://hrareceipt.in/answers/reverse-charge-mechanism-rcm-gst)
- [GST reverse charge for a small business: which bills trigger it](https://hrareceipt.in/answers/gst-reverse-charge-rcm-small-business)
- [Aggregate turnover (AATO): the GST registration threshold](https://hrareceipt.in/answers/aggregate-turnover-aato-gst-registration-threshold)

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*Source: [Do You Owe GST on Zoom, Figma, or Google Workspace?](https://hrareceipt.in/answers/reverse-charge-import-of-services-foreign-saas-gst) — HRAReceipt.in*
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