Taxes on Stripe fees for India-based businesses
Indian Goods and Services Tax (GST) is applied to your Stripe fees, and then deducted from your Stripe account balance throughout the month. At the end of each month, your monthly tax invoice will show the total amount of GST that you’ve been charged. Depending on which state you are located in, this will be either a single 18% tax line item (IGST) or a sum of two 9% tax line items (CGST & SGST). In order for Stripe to charge sales tax accurately, please ensure that your business address is up to date. Head to Business Settings in your dashboard to confirm that Stripe has the correct information.
In order to comply with Tax Deducted at Source (TDS) provisions, Stripe will pay you an additional amount (currently 5% of the monthly invoice amount, changing to 2% effective from 1st October 2024) if you provide a valid Tax Deduction Account Number (TAN) on your Stripe Dashboard. This ensures you do not have to use your own cash flow to complete this payment, and then claim this amount back from Stripe at a later date.
You are fully responsible to remit this amount to the government of India and issue a TDS certificate (Form 16A) within the statutory time limit.
The GST and TDS rates will be reflected in your monthly tax invoices, and your Stripe Dashboard:
2) All transactions page in your Stripe Dashboard (Payments >> All transactions) as “Tax deducted at source for the month of [year/month]”:
Monthly tax invoices for Stripe accounts in India: GSTIN / GST
We will issue a tax invoice for each month by the 10th of the following month. You can access your invoices on the Documents page of your dashboard. Learn more about how to access your monthly invoices below:
Download tax invoices for Stripe fees
Understanding your monthly tax invoice
To issue you a B2B e-invoice, please ensure you have entered your valid 15 digit GSTIN (tax id) in your Dashboard (Settings > Tax details).
Export (international) transactions
If you have processed international transactions, Standard Chartered Bank (SCB) will send you a Payment / Credit Advice to the email address registered with Stripe on the same day the export payout is being processed.
The Payment / Credit Advice may be used as proof that you have received export payments originated outside of India that were subsequently brought into India.
QR code authentication for e-invoices in India
All e-invoices generated by Stripe India to our account holders will be electronically authenticated on the common GST e-invoice portal. All invoices issued to GST-registered account holders will contain a QR code which contains invoice details such as the GSTIN of Stripe India and the account holder, invoice number, date of invoice generation, invoice value, HSN code, unique invoice reference number (IRN) and the digital signature of the Invoice Registration Portal (IRP). A taxpayer, as well as a tax officer, can validate the details of an invoice through the QR code.
You can verify details of the QR code by downloading the QR code verification app.
Important: If you're registered for GST in India and claim input tax credits on the GST that Stripe charges you, it's important that you check that the details you have provided us are accurate on a regular basis. If your details are not accurate, then the common GST e-invoice portal will not authenticate the information and the GST may not be available to you as an input tax credit. Specifically, you should ensure the following information is accurate at all times:
- Your GSTIN
- The PIN Code and other address details associated with your GSTIN registration.
GST clarification applicable to Special Economic Zones in India
Stripe India does not provide any additional benefits or GST exemptions for businesses set up in the Special Economic Zone (SEZ). The tax you see in your transaction is the tax imposed on Stripe’s processing fee which is not currently GST-exempted.
Learn more by checking out the articles below:
Global Taxation of Stripe fees