Why is Contabo charging 18% GST in India?

shaikhmanal

Correct me if I'm wrong but why is Contabo charging 18% GST in India when they clearly have no India location, or as far as I know from Google, no India office?

At first, I thought they may be charging some EU based VAT to everyone not in EU(like how ZAP does) but nope, they are charging GST to India users only.

shaikhmanal

CC: @contabo_m

xvps

Every non-Indian seller of digital services who makes a single sale to an Indian consumer must register for India GST as there is no sales threshold.

source: https://www.vertexinc.com/resources/resource-library/no-india-gst-threshold-foreign-digital-service-suppliers

Void

Does the invoice have the GST ID of contabo?

shaikhmanal

@xvps said:
Every non-Indian seller of digital services who makes a single sale to an Indian consumer must register for India GST as there is no sales threshold.

source: https://www.vertexinc.com/resources/resource-library/no-india-gst-threshold-foreign-digital-service-suppliers

Damn okay. I guess I was spoiled by Hetzner.

shaikhmanal

@jmaxwell said:
Does the invoice have the GST ID of contabo?

dunno. The GST itself has been keeping me from buying their server. Plus their overselling reviews.

Levi

@shaikhmanal said: I guess I was spoiled by Hetzner.

Good idea! @Hetzner_OL would you mind start charging GST in India?

hostkar

Maybe they are setting up a business in India so they are preparing things as per the Govt. regulations.

amaeva080

@shaikhmanal said:

@jmaxwell said:
Does the invoice have the GST ID of contabo?

dunno. The GST itself has been keeping me from buying their server. Plus their overselling reviews.

I've asked that question to their support on why it's being charged if they are not remitting back to India. They said they are remetting. And no, i checked with friends and no, it didn't have any gst information on their invoices.

emgh

Probably have or is about to get an office there. Makes sense for knowledgable and cheap support.

dosai

https://www.zaubacorp.com/company/CONTABO-INDIA-PRIVATE-LIMITED/U72900MH2021FTC366848

shaikhmanal

@dosai said:
https://www.zaubacorp.com/company/CONTABO-INDIA-PRIVATE-LIMITED/U72900MH2021FTC366848

ah yes. Created a company only to charge additional 18% wtf

varwww

@shaikhmanal said:

@dosai said:
https://www.zaubacorp.com/company/CONTABO-INDIA-PRIVATE-LIMITED/U72900MH2021FTC366848

ah yes. Created a company only to charge additional 18% wtf

I think it is mandatory for them to charge 18% GST, most likely forced by Indian Govt to continue business. Otherwise, the consumer has to pay the GST via reverse charge mechanism.

_MS_

Did you ask Contabo?

dev_vps

@shaikhmanal said:

@dosai said:
https://www.zaubacorp.com/company/CONTABO-INDIA-PRIVATE-LIMITED/U72900MH2021FTC366848

ah yes. Created a company only to charge additional 18% wtf

Do you understand the corporate laws?
Who gets that 18% gst charges ?

Read again

every non-Indian seller of digital services who makes a single sale to an Indian consumer needs to register for GST in India

rnthosting

@shaikhmanal said:

@dosai said:
https://www.zaubacorp.com/company/CONTABO-INDIA-PRIVATE-LIMITED/U72900MH2021FTC366848

ah yes. Created a company only to charge additional 18% wtf

The 18% GST is not something they keep, Its something that the India tax office takes

dev_vps

@shaikhmanal said:

@dosai said:
https://www.zaubacorp.com/company/CONTABO-INDIA-PRIVATE-LIMITED/U72900MH2021FTC366848

ah yes. Created a company only to charge additional 18% wtf

Here you are saying WTF .... but do you guts to say same thing for the tax paid for every liter of petrol (gasoline) .... just look at the tax amount charged for every liter there

GST is charged for even on the buttermilk there.

The amount being collected by Centre as excise duty/cess
for each litre of petrol is Rs. 32.90/litre
and for diesel is Rs. 31.80/litre

Tax collection on petrol, diesel up 459% in 7 years

Vikasverma

If they charge GST in India, they should have a valid GST number and it's mandatory to mention valid GST number in invoice as well; otherwise, they cannot levy GST on the end Indian user as per government regulations. You can file a complaint with the consumer rights department regarding this matter.

davide

@dev_vps said:
Here you are saying WTF .... but do you guts to say same thing for the tax paid for every liter of petrol (gasoline) .... just look at the tax amount charged for every liter there

GST is charged for even on the buttermilk there.

Excise duties on gasoline... as if the cost of transport is irrelevant to economic progress. A dude called Charles Dow saw the linearity between railway penetration and market development 200 years ago. What fags we are today. The electric car and its costs will be the nuclear bomb on the global economy, but the scapegoat will be, complicated to explain, as usual.

The foundation of the problem is fucking YOU, and you only. For 10,000 years YOU venerated gods portrayed by tyrants on earth who have only robbed you, while you praised their benevolence. Today in the name of Democracy YOU deserve to be robbed, as usual

dev_vps

@davide said:

@dev_vps said:
Here you are saying WTF .... but do you guts to say same thing for the tax paid for every liter of petrol (gasoline) .... just look at the tax amount charged for every liter there

GST is charged for even on the buttermilk there.

Excise duties on gasoline... as if the cost of transport is irrelevant to economic progress. A dude called Charles Dow saw the linearity between railway penetration and market development 200 years ago. What fags we are today. The electric car will be the nuclear bomb on the global economy, but the scapegoat will be, complicated to explain, as usual.

Read again

Tax collection on petrol, diesel up 459% in 7 years

When crude oil price go down, the price is still maintained at same level

davide

@dev_vps said:
Read again

I read it again. All systems are operational. No errors logged. After all I am HAL 9000, the perfect series.

I rather suspect it's you who encountered an undetected memory bit flip and need to reboot ASAP for the love of us all.

Lee

@shaikhmanal said: dunno. The GST itself has been keeping me from buying their server. Plus their overselling reviews.

Love that you are annoyed about the GST but only annoyed as an aside about overselling.

mgcAna

I remember OVH started charging Indian customer GST and later on they started operations in India, probably contabo is also preparing for it. Already their paid up capital for Indian company formation is 4cr INR, its big enough.

Luke007

Cloudflare have also started charging GST

uekix

2024, tax hike everywhere. Yikes.

shaikhmanal

@Luke007 said:
Cloudflare have also started charging GST

They have been doing that since September 2023. And Cloudflare does have a datacenter and even a team in India.