- Expect 18% GST on ad invoices.
- Registered businesses can often claim input credit.
- Report ROAS on a pre-tax basis.
Why the tax changes your numbers
A campaign with a stated spend of 100,000 rupees becomes an invoice of 118,000 rupees after GST. Revenue of 400,000 rupees gives a ROAS of 4.0 before tax and 3.39 against the invoice. Choose one basis and keep it.
What to check in India
Set budgets before tax
Ad platforms take budgets before tax. Decide whether your internal target is net or gross, and record both in your plan. This avoids overspending by 18 percent.
Use break-even with tax in mind
If you cannot claim credit, treat GST as part of ad cost when you calculate break-even ROAS. If you can claim it, use the net figure.
What do I pay per thousand impressions?
Questions about Paid Media Math
Is the rate always 18 percent?
It is the general rate for advertising services. Rates can change, so confirm with current guidance.
Does the ad platform collect GST?
Platforms typically add GST to the invoice for Indian advertisers.
Is this tax advice?
No. Consult a chartered accountant.
Key terms
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