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Google Ads GST, TDS and billing in India

By SpendCanary team · Updated

If your business is in India, Google Ads adds 18% GST, needs your GSTIN to match your billing state, and has its own process for TDS. This page explains each part from Google’s help and official Indian sources.

We’re not tax advisers. Tax rules change, so check anything that affects your filings with your chartered accountant.

Who bills you, and the 18% GST

Indian advertisers sign Google’s advertising terms with Google India Private Limited, and the terms say charges are exclusive of taxes. Google’s tax page says GST is 18%, applied according to your billing details:

  • bill-to address in Haryana: 9% CGST plus 9% SGST,
  • bill-to address in any other state: 18% IGST,
  • SEZ units: 0%.

Your GSTIN

Google says a GSTIN is mandatory for business accounts and optional for individual accounts. Without one, your GSTIN won’t appear on Google’s invoices, and you may not be able to claim credit for the GST you paid.

To add it: Billing > Settings > Payments profile > India Tax info. If you’re on monthly invoicing, contact your account manager instead. Three things to get right:

  • The GSTIN’s state must match your “Bill to” state. If it doesn’t, Google treats the invoice as issued to an unregistered customer.
  • Google won’t re-issue invoices that were already finalised before you changed your tax details, so add your GSTIN early.
  • Google renames menus from time to time, so the labels may differ slightly in your account.

TDS on Google Ads payments

Google says the current TDS rate for advertising payments to Google India is 2%, excluding GST, and that the rate may change. Google gives the rate but not which section of the law applies to you, so confirm the treatment with your accountant.

If you deduct TDS, send Google the certificate every quarter:

  • The certificate is Form 131, which replaced Form 16A under the Income-tax Act, 2025. The due dates are 15 August, 15 November, 15 February and 15 June. Google won’t accept certificates for the previous financial year after 15 June.
  • Prepay or postpay accounts: email the certificate to eps-tds@google.com. Monthly invoicing: use Google’s tax operations form.
  • Google’s PAN is AACCG0527D.
  • Once Google approves the certificate, the amount is added to your Google Ads account as credit.

The equalisation levy has ended

The 6% equalisation levy on online advertising paid to companies outside India, introduced in 2016, stopped applying from 1 April 2025 under the Finance Act 2025.

Where to find your tax invoices

  • Tax invoices: Billing > Documents > Tax and statutory documents. Each month’s invoice is ready by the fifth working day of the following month. Google doesn’t post or email these unless you’re on monthly invoicing, so download them yourself.
  • Receipts: Billing > Summary. Google is clear that statements and receipts aren’t bills.
  • Prepay: an invoice is created each time you add money.
  • If you’re not registered for GST and have a balance due, the invoice carries a UPI QR code you can scan to pay.

Ways to pay

  • Cards: Visa and Mastercard, and RuPay credit or debit cards for prepay.
  • NetBanking: prepay only, in rupees from an Indian bank, with a minimum of ₹500.
  • UPI: prepay only, in the Google Ads app on Android, from ₹500 up to ₹1,00,000 a day.
  • Automatic card payments (postpay): RBI rules require an e-mandate on your card. Google’s notice from 2021 said postpay card payments would be limited to ₹15,000 and need an e-mandate, or they would fail. If automatic payments keep failing, prepay is Google’s suggested alternative.
  • Monthly invoicing is paid by bank transfer or cheque, not card.

Your account’s currency is set for good when the account is created. NetBanking and UPI need an account in rupees.

Why a day can cost more than your daily budget

On any one day, Google can spend up to twice your average daily budget, but over a month it charges no more than 30.4 times the daily budget. See why Google Ads spent more than your daily budget.

Sources

Common questions

How much GST does Google charge on Google Ads in India?
Google’s help says 18%. With a bill-to address in Haryana it is split as 9% CGST and 9% SGST; elsewhere it is 18% IGST; SEZ units are charged 0%.
Is a GSTIN required for Google Ads?
Google says a GSTIN is mandatory for business accounts and optional for individual accounts. Without it, your GSTIN won’t appear on Google’s invoices and you may not be able to claim credit for the GST you paid.
Can I deduct TDS on Google Ads payments?
Google says the current TDS rate for advertising payments to Google India is 2%, excluding GST. Send the quarterly TDS certificate to Google, and once approved the amount is added to your Google Ads account as credit. Ask your accountant whether TDS applies to you.
Is the 6% equalisation levy still charged on Google Ads?
No. The 6% equalisation levy on online advertising stopped applying from 1 April 2025, under the Finance Act 2025.