GST on WordPress plugins and themes bought from India
What GST you pay on foreign plugins, themes and SaaS, with and without a GSTIN, and how resellers handle it.
Short answer: foreign plugins and themes are OIDAR services, taxed at 18% IGST. Without a GSTIN the seller charges it at checkout. With a GSTIN you pay it yourself under reverse charge and can usually claim input tax credit.
Who pays GST, and how
Two cases, depending on whether you have a GSTIN.
| Buyer | Who pays the 18% | How | Input tax credit |
|---|---|---|---|
| Individual, no GSTIN | The foreign seller | Added at checkout under the OIDAR rules (IGST Act section 14) | Not applicable |
| Business with GSTIN | You | Reverse charge on import of services (Notification 10/2017-Integrated Tax (Rate)) | Usually yes, subject to CGST sections 16 and 17(5) |
How plugin sellers handle GST
Many WordPress vendors sell through a reseller that handles tax.
| Reseller | India GST | Business buyers |
|---|---|---|
| Paddle | Charges 18% to consumers (B2C) | Not stated for India |
| FastSpring | Charges 18%; registered for India GST | Zero rate for eligible businesses with a valid GST ID |
| Direct (Stripe or PayPal) | Depends on the vendor’s registration | Ask the vendor for a tax invoice |
What changed in 2023
From 1 October 2023
- Any unregistered person in India is a non-taxable online recipient, whatever the purpose
- OIDAR no longer needs to be ‘essentially automated’
- So almost all online software sales to Indians are covered
What it means for you
- Expect 18% on top of the listed price
- Keep the invoice for business purchases
- Check whether GST is shown as a separate line
GST on WordPress plugins: FAQ
Is GST charged on WordPress plugins bought from abroad?
Yes. Plugins, themes and SaaS sold online by a foreign company are OIDAR services under GST. For buyers without a GSTIN, the seller must register in India and charge 18% IGST.
Do I pay GST if I have a GSTIN?
Yes, but through reverse charge: as a registered business you pay the 18% IGST yourself in your GST return, and can usually claim it back as input tax credit.
Will entering my GSTIN remove GST at checkout?
With some resellers, yes. FastSpring zero-rates eligible businesses with a valid GST ID. We found no clear statement from Paddle. You then account for GST under reverse charge.
Is the forex fee also taxed?
Banks charge 18% GST on their forex markup, so a 3.5% markup costs about 4.13% in total.
Is this tax advice?
No. This guide explains the general rules with official sources. Ask a chartered accountant about your own situation.
About this page
Pritam Sonone
Founder of Digital Pritam. WordPress developer and designer, WordCamp Kolhapur 2025 speaker. Builds WordPress sites for clients.
How we checked
- Rules summarised from the IGST Act and CBIC notifications
- Reseller tax handling from Paddle and FastSpring documentation
- Not tax advice: ask a chartered accountant about your case
Sources: Notification 10/2017-IT (Rate) · Paddle tax · FastSpring tax
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