Zoom Phone is also available via a Bring Your Own Carrier Model (BYOC). This allows for premise Peering, which allows enterprise customers to keep their current PSTN service providers.
What is GST in relation to Zoom Phone services in India?
GST is the abbreviation of Goods and Services Tax. GST is in general due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in India. It is a consumption tax because it is ultimately borne by the final consumer. Zoom Phone services in India are treated as a service and are liable to GST.
Who must pay GST when using Zoom Phone services in India?
Generally, GST is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected GST to the tax authorities. In the case of Zoom Phone services, ZVC India will charge GST on the invoice issued to the customer.
Why am I being charged GST when using Zoom Phone services in India?
GST generally applies to all the taxable supplies made by ZVC India to customers in India (there may be some supplies to customers in Special Economic Zones (“SEZ”) that are treated without GST). Zoom Phone services in India are treated as a supply of services and liable to GST except when provided to a SEZ customer.
The supplies are bifurcated as intra-state supplies and inter-state supplies. Intra-state supplies are where the supplier and the place of supply (i.e. location of customer) are located in the same state whereas inter-state supplies are where the supplier and the place of supply (i.e. location of customer) are located in different states.
Central GST (“CGST”) and applicable State GST (SGST) are levied on intra-state supplies, whereas Integrated GST (“IGST”) is levied on inter-state supplies.
What is a GSTIN in relation to Zoom Phone services in India?
A Goods and Services Tax Identification Number (GSTIN) is a unique 15-digit PAN-based identification number that identifies a person/entity as being registered for GST in India.
What is the GST classification of Zoom Phone India?
Zoom Phone services are treated as telephony over the internet in India and are classifiable under HSN 998423 telephony services over the internet under GST.
What is the GST place of supply for Zoom Phone in India?
The place of supply for Zoom Phone services is determined based on the customer's Sold To address.
Where is Zoom Phone available in India?
Currently, Zoom Phone is available in multiple telecommunication circles covering multiple geographical states in India.
The equipment used to make the supply is required to be located within a specific calling circle. The location of the equipment is the place from which the supply is made for GST purposes.
Does ZVC India have a GSTIN number for Zoom Phone services in India?
Yes. ZVC India is registered in the states listed below as part of the provision of Zoom Phone services:
Maharashtra
Telangana
Karnataka
Delhi
Tamil Nadu
When purchasing Zoom Phone services, the relevant GSTIN of the state from which the services are provided will be shown on the tax invoices issued to you by ZVC India.
What type of GST will be charged and how will it be determined for Zoom Phone services in India?
If your Sold To address is in the same state where ZVC India is registered for GST for a particular telecommunication circle, you will be charged CGST and SGST. If your Sold To address is in a different state, then IGST will be charged.
The table below shows the GST that will be charged in the six telecommunication circles based on your location.
If you are not located in any of the states listed under ‘Your location state’ then the Zoom Phone services will be provided through ZVC India’s Maharashtra registration.
Sr. No.
Telecommunication Circle
ZVC India’s billing State
Your location State
GST charged
1.
Mumbai MET RO
Maharashtra
Maharashtra
CGST and SGST
2.
Andhra Pradesh
Telangana
Telangana
CGST and SGST
3.
Andhra Pradesh
Telangana
Andhra Pradesh
IGST
4.
Karnataka
Karnataka
Karnataka
CGST and SGST
5.
Delhi NCR
Delhi
Delhi
CGST and SGST
6.
Delhi NCR
Delhi
Haryana
IGST
7.
Delhi NCR
Delhi
Uttar Pradesh
IGST
8.
Tamil Nadu
Tamil Nadu
Tamil Nadu
CGST and SGST
9.
Tamil Nadu
Tamil Nadu
Puducherry
IGST
10.
Maharashtra
Maharashtra
Maharashtra
CGST and SGST
11.
Maharashtra
Maharashtra
Goa
IGST
Do I need to be GST registered to purchase Zoom Phone in India?
There is no requirement to be GST registered to purchase Zoom Phone services. However, to receive an e-invoice and to avail input tax credit of the GST charged by ZVC India, you must be GST-registered.
In case you are GST registered and wish to receive an e-invoice and avail input tax credit on Zoom Phone services, you will be required to provide your state-level GSTIN to ZVC India.
If you are purchasing Zoom Phone for multiple states and wish to receive separate invoices for each state where such services are provided, then you will need to provide a GSTIN for each state as applicable.
Does ZVC India provide e-invoices for Zoom Phone services in India?
Yes. ZVC India is required to provide e-invoices through the Invoice Registration Portal (IRP) for any Business to Business (B2B) supplies including any supplies to a customer in an SEZ.
Where you purchase Zoom Phone, and you intend to receive an e-invoice and avail input tax credit on such invoices, you must provide a GSTIN of your local office in the respective telecommunication circle for which you purchase Zoom Phone. If you do not provide your GST number to ZVC India, no e-invoice will be generated through the IRP process and you may not be able to reclaim GST charged to you by ZVC India.
ZVC India utilizes real-time validation against the Goods & Services Tax Portal to determine if the GSTIN provided belongs to a SEZ taxpayer. If the GSTIN provided indicates that you are located in an SEZ, no GST will be charged on the supplies made to you.
Zoom regularly reviews customer GSTIN details to check if SEZ status remains valid. If it is identified that you do not have valid SEZ status, ZVC India reserves the right to charge GST on any future invoices issued to you.
If you have not provided your GST number and you provide this at a later date, ZVC India will not go back and adjust for any invoices previously issued. As such, it is essential that as a customer you provide ZVC India with your correct GST number if you want to avail of the GST paid to Zoom as an input tax credit.
To align with revised rules announced by the Indian Government, ZVC India is required to generate e-invoices within 30 days from the date of invoice, debit note, or credit note. It is therefore critical that your GST number and other relevant information for e-invoicing is correctly provided by you to ZVC India at the time of invoicing. Further, ZVC India reserves the right to recover any tax, interest, or penal liabilities suffered for non or delayed issuance of e-invoices through the IRP due to non or delayed submission of a valid GSTIN by you to ZVC India.
You are required to notify us if there is a change in your GST registration status or particulars.
How is ZVC India determining which customers GST applies to, when using Zoom Phone services in India?
GST applies to all services provided by ZVC India to customers except where services are supplied to customers that have SEZ status i.e., customers that have provided a GSTIN which via the real-time validation indicates that they are a SEZ taxpayer.
When I purchase Zoom Phone in India will I receive multiple invoices?
If you purchase Zoom Phone in multiple states you will receive a separate invoice, from each billing state of ZVC India (as indicated above) in which you have purchased Zoom Phone.
If you purchase Zoom Phone alongside other Zoom products you will receive separate invoices for the Zoom Phone products and the other Zoom products, even if you purchase the products in the same state.
What if I have multiple GSTIN in a State when using Zoom Phone services in India?
If you have multiple GSTINs in a State (including SEZ and non-SEZ), and expect to receive e-invoices to each/ any of your respective registrations within that state, you will need to have separate billing accounts for each GSTIN. ZVC India can issue separate e-invoices from each billing account as per declaration of GSTIN’s and “Sold To” and “Bill To” address you have provided.
What happens if I do not have a GSTIN when using Zoom Phone services in India?
If you do not have or provide a GSTIN, ZVC India will report the transaction as a B2C supply or a supply made to a non-business customer. You will be required to have a GSTIN and address location in a particular telecommunication circle in which you purchase Zoom Phone, to avail GST paid to Zoom as input tax credit.
If the GSTIN provided is not valid, ZVC India will treat the supply as being made to a non-business customer when it submits its GST returns to the Indian tax authorities. The impact of this is that even if the supply is made to a business customer, the customer may be unable to avail the GST charged by Zoom as input tax credit.
Please note, there may be other requirements required to be met by the customer to support an input GST credit claim.
How will the customer location be determined where the bill to and the sold to addresses are different when using Zoom Phone services in India?
ZVC India will apply GST if the location of the “Sold To” contact address entered by the customer is in India. This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
Please note, if the ‘Bill To’ or ‘Sold To’ address are not aligned with your GSTIN registration details, this may impact your ability to avail GST input tax credit on the tax charged by ZVC India. As such, it is your responsibility as a customer to make sure the “Bill To” and “Sold To” addresses you provide to ZVC India align.
Is there a minimum threshold transaction amount before GST is applied when using Zoom Phone services in India?
No. GST applies to all sales of ZVC India’s services in India.
What exemptions are available when using Zoom Phone services in India?
If you are located in a Special Economic Zone (SEZ), you (1) provide your GSTIN and (2) the GSTIN provided indicates that you are located in a Special Economic Zone, then the supplies that ZVC India makes to you will be taxable at the zero rate of GST.
ZVC India will verify SEZ status with the Indian Tax Authorities when submitting its GST returns. If during this process it is identified that a customer does not have valid SEZ status, ZVC India reserves the right to charge GST on any future invoices issued. ZVC India may further request for a declaration of use of the services in the authorized operations of the SEZ/ SEZ unit.
Where a customer cannot provide valid information to support SEZ status then ZVC India will collect GST on supplies made.
Are there any special exemptions applicable for charitable organizations under which GST may not be charged when using Zoom Phone services in India?
No. GST will be charged on all taxable supplies made to charitable organizations in India.
What are some of the common errors that impact the generation of e-invoices when using Zoom Phone in India?
Errors that may lead to e-invoices not being successfully generated typically relate to errors in customer billing information. We, therefore, recommend undertaking the below checks when updating billing information on the Zoom portal when purchasing Zoom Phone in India:
The state in the address field under the Billing Contact and Sold to Contact is correct.
The state reference of the GST number (i.e. the first two digits of the GSTIN) corresponds to the State Code of the state in the address field mentioned under Billing Contact and Sold to Contact.
Zip / Postal Code is captured under the Billing Contact and Sold to Contact. The ZIP / Postal Code should be 6 digits and should correspond to the state in the address field under the Billing Contact and Sold to Contact.
The GST registration number provided by you is active and valid, belongs to you, and aligns with your company name.
What if I have a GSTIN and forget to enter it for Zoom Phone services in India?
Please note, if you do not provide a valid GST number to Zoom your supply will not be reported through the e-invoicing system and you may not be able to claim input tax credit.
However, the GSTIN can be entered at any time, and once provided it will show on the next invoice and future Zoom Phone invoices issued to you. ZVC India will also report all future supplies against your GSTIN while filing its GST returns (which is required to support your input tax credit claim). Please note that no retrospective adjustments will be made where you have not provided your GST number.
Further, if GSTIN is entered before the next invoice, ZVC India will not charge GST on the next invoice or future invoices issued to you only if you are in a SEZ.
Once the GSTIN is entered, ZVC India will also report all future supplies against your GSTIN number when reporting its output GST to the Indian Tax Authorities (which is required to support your input GST deduction).
ZVC India reserves the right to recover any tax, interest, or penal liabilities suffered for non or delayed issuance of e-invoices through the IRP due to non or delayed submission of a valid GSTIN by you to Zoom.
Is there any timeline for issuing credit notes with Zoom Phone services in India?
Credit notes with GST are required to be issued before October 31 of the end of the financial year to which the invoice relates. See examples below of the time limits applicable:
If an invoice was issued on April 1, 2022, a GST credit note adjustment cannot be issued after October 31, 2023.
If an invoice was issued on January 1, 2023, a GST credit note adjustment cannot be issued after October 31, 2023.
If an invoice was issued on February 22, 2024, a GST credit note adjustment cannot be issued after October 31, 2024.
If an invoice was issued on October 13, 2023, a GST credit note adjustment cannot be issued after October 31, 2024.
If an invoice was issued on October 31, 2024, a GST credit note adjustment cannot be issued after October 31, 2025.
If the credit note is issued outside of these dates, an adjustment for the GST amount may not be included on the credit note.
Further, in a scenario, where a GST credit note is reported through the e-invoicing system against your GSTIN, this may result in the reversal of input tax credits claimed earlier by you on ZVC India’s invoice (as per provisions contained in the GST law).
What is the Invoice Management System (IMS) and how does it impact my transactions with ZVC India?
The Invoice Management System (IMS) is a platform designed to streamline the process of invoice validation and input tax credits (ITC) for GST reporting. If you are a business customer of ZVC India, you are expected to review and accept the GST documents (invoices, credit notes, and debit notes) issued by us to you, this is important for your accurate and timely deduction of input tax credits (ITC).
Your prompt action on approving invoices, debit notes, and credit notes in the IMS is essential, and we expect you to accept these documents as part of our ongoing business relationship. Should you have any questions regarding the reason for the issuance of a particular document, including credit notes, or if you need any corrections to be made, please reach out to our billing team for further assistance.
Disclaimer
Every customer is unique and so are their specific tax circumstances. The following information should not be considered as tax advice but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.