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Lab // Paid Media Math

GST on Google and Meta ads in India: how it changes your ROAS

The short answer

Advertisers in India usually pay 18 percent GST on Google and Meta ad invoices, and GST-registered businesses can often claim it as input credit. Plan budgets before tax and calculate CPM, CPC and ROAS on a net basis, or your results will look up to 18 percent weaker than they are.

Key takeaways
  • 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.

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What do I pay per thousand impressions?

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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

Written by

Kartikeya Awasthi, Co-founder, InTrendz Media

Kartikeya has 12 years of experience across Accenture, EY, Coforge and other enterprises. He holds an MBA from NMIMS Mumbai and has received CII National Gold and Silver awards for AI and Industry 4.0 work. He writes and reviews every Growth Lab article. More about the author

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