'If X is earning revenue from India, it should...': Tech industry executive questions Elon Musk over GST

Prakash Advani, Chief Growth Officer at Olive Intelligence, has questioned Elon Musk over the alleged absence of Goods and Services Tax (GST) on invoices for X Premium and other paid subscriptions in India.

Advani, who works in AI infrastructure, AI data centres, open-source technology and sustainability, raised the issue in a post on X. Addressing Musk directly, he said he was surprised that invoices for paid subscriptions did not include local taxes.

"I'm surprised to see that X invoices for Premium and other paid subscriptions in India do not include local taxes (GST)," Advani wrote. "If X is earning revenue from users in India, it should comply with Indian tax laws and collect and remit GST, just like other digital service providers do."

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Advani tagged Musk, X and X Corp India in his post, seeking clarification on why GST was not being charged on paid subscriptions.

Hi Elon, I’m surprised to see that X invoices for Premium and other paid subscriptions in India do not include local taxes (GST). If X is earning revenue from users in India, it should comply with Indian tax laws and collect and remit GST, just like other digital service providers do. Could you clarify why GST is not being charged on paid subscriptions in India? Thank you for your attention. @elonmusk @X @XCorpIndia

What are India's GST rules for digital services?

India’s GST framework covers several digital services, including online subscriptions and services delivered through electronic platforms. The applicable tax treatment depends on the nature of the service, the supplier’s arrangements, the place of supply, and relevant registration and invoicing requirements.

Digital service providers may have GST collection and payment obligations under applicable provisions.

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X Premium subscriptions 

X offers paid Premium subscriptions that provide users with additional features compared with its free service. These subscriptions form part of the platform's monetisation strategy, alongside advertising and other revenue streams.