GST on Facebook and Google Ads in India: Claiming ITC

Quick answer: Yes. Ads that Indian advertisers buy from Facebook India Online Services (Meta) and Google India carry 18% GST. Add your GSTIN to each platform's billing settings before you spend, so the invoices show it and you can claim input tax credit. The old 6% equalisation levy on online ads was abolished from 1 April 2025.

Most ad budgets are planned in round numbers: ₹50,000 for Meta this month, ₹30,000 for Google. Then the invoices arrive with 18% on top, and your CA asks why half of them don't show your GSTIN. This guide covers the tax side of ad spend in plain language: GST, input tax credit, TDS and the levy that no longer applies. It's general information for business owners, not tax advice, so confirm the details for your entity with a chartered accountant.

Does Meta charge GST on Facebook and Instagram ads in India?

Yes, when your ad account is billed by Meta's Indian entity. Per Meta's help centre, since October 2018 ads bought by advertisers in India and paid in rupees have been sold by Facebook India Online Services Pvt Ltd and are subject to 18% GST. The tax appears on the invoice in addition to your ad spend.

Google works the same way for Indian customers: Google Ads invoices from Google India Pvt Ltd carry 18% GST.

If your ad account uses a foreign currency or a non-Indian billing country, a foreign Meta entity may bill it instead, and the mechanism changes. That's covered two sections below.

How do you add your GSTIN in Meta Ads Manager and Google Ads?

Enter it in each platform's billing profile before you spend, with your legal name and address exactly as they appear on your GST registration.

On Meta:

1. Open Billing and payments in Meta Business Suite or Ads Manager.
2. Go to the payment settings for the ad account and find the business information section.
3. Check the business name and address against your GST certificate.
4. Enter the GSTIN for the state registration you want invoices raised against, usually your main place of business.
5. Save, then check that the next invoice shows it.

On Google Ads:

1. Open Billing, then Settings.
2. In the payments profile, confirm the legal name and address.
3. Add the GSTIN in the tax information field.

Menu labels move around, but the field is normally called GST number or tax ID. Changes apply to invoices from then on, not backwards.

Who bills you, Facebook India or Meta Ireland, and why does it matter?

The billing entity decides whether GST is charged on the invoice or whether you pay it yourself under reverse charge.

To check, look at the supplier name and supplier GSTIN at the top of the invoice. A foreign entity won't have an Indian GSTIN. Older ad accounts set up in US dollars are the usual case. Because Meta doesn't let you change an existing ad account's currency, moving to Indian invoices generally means opening a new rupee ad account with your Indian billing details.

Can you claim input tax credit on ad spend, and what if the GSTIN was missing?

Usually yes, for business advertising, provided the invoice carries your GSTIN and appears in your GSTR-2B. The standard conditions under the GST law apply: a valid tax invoice, the service received, the tax paid to the government by the supplier, and the spend used for your business. Advertising isn't generally among the blocked credits, but your CA should confirm it for your situation.

The common problem is a missing GSTIN. An invoice issued without it is treated as a sale to an unregistered customer, it won't show up in your GSTR-2B, and the credit becomes hard to claim. Fix the billing profile now so future invoices are right. For past invoices, raise a support request and ask whether corrected invoices can be issued, but treat that as a favour you're asking for, not something you're owed. ITC also has a time limit for each financial year, so don't leave the clean-up for months.

Cash flow matters too. On ₹50,000 of monthly ad spend, you pay ₹9,000 of GST up front and recover it only through your return. When an agency quotes an ad budget, ask whether its figures include GST; our guide to digital marketing cost in India shows how fees and spend are usually split. And when you work out a good cost per lead on Meta ads in India, decide upfront whether you're using numbers with or without GST.

How does TDS on ad spend work, and how do you get it back?

Meta's India billing lets eligible advertisers account for TDS on ad spend and recover it as ad credit. Because Meta charges your card or prepaid balance in full, the process runs in reverse:

1. You pay the full invoice amount.
2. You deposit TDS on the ad spend, not on the GST portion, with the government.
3. You file your TDS return and generate Form 16A.
4. You submit the certificate through Meta's TDS process in Billing and payments.
5. Meta adds the amount back to your ad account as ad credit, not as a bank refund.

Meta's help centre has referred to TDS at 2%, but which section applies, the rate and whether you must deduct at all depend on your entity and turnover, so confirm with your CA. Meta also sets deadlines for submitting certificates. For Google Ads, how TDS is handled depends on your payment setup, so check with Google's billing support and your CA before deducting anything.

What happened to the 6% equalisation levy on online ads?

It was abolished from 1 April 2025. The levy, introduced in 2016, charged 6% on payments made to non-resident companies for online advertising services, such as an Indian business paying a foreign Meta or Google entity directly. The Finance Act 2025 removed it from 1 April 2025.

So older advice that adds 6% on top of foreign-billed ad budgets is out of date. Payments made before that date followed the old rules; if you have unresolved levy questions from earlier years, take them to your CA.

What should you hand your CA every month?

A tidy pack of invoices, a reconciliation against GSTR-2B and a simple spend sheet. This checklist covers it:

• [ ] Meta invoices downloaded from Billing and payments, for every ad account.
• [ ] Google Ads invoices or statements from the billing documents section.
• [ ] Each invoice matched against GSTR-2B, with any missing your GSTIN flagged.
• [ ] Any foreign-entity invoices flagged for reverse charge.
• [ ] TDS challans, returns and Form 16A for Meta, with the date each was submitted.
• [ ] Agency invoices kept separate from platform invoices.
• [ ] A spend sheet with month, platform, ad account, spend, GST and invoice number.

The spend sheet does double duty: it's also the starting point for splitting ad spend between Meta and Google based on results rather than habit. If you're setting a fresh budget, our guide to the Google Ads budget in India shows where GST fits in.

Frequently asked questions

Is GST charged on Facebook ads in India?

Yes. Ads billed by Facebook India Online Services, the usual case for rupee accounts with an Indian billing address, carry 18% GST. Accounts billed by a foreign Meta entity don't show Indian GST on the invoice, but a registered business generally pays it under reverse charge.

Can I claim input tax credit on Google Ads spend?

Generally yes, when the ads are for your business, your GSTIN is on the payments profile and the invoice appears in your GSTR-2B. Ask your CA to confirm for your entity and to keep an eye on the annual time limit.

Can I add my GSTIN to old Meta ad invoices?

Adding your GSTIN now applies to invoices from that point on. Whether past invoices can be corrected is up to Meta's support team, so make the request but don't plan around it.

Do I need to deduct TDS on Facebook ads?

It depends on your business type, turnover and billing setup. Meta's India billing has a process for recovering TDS as ad credit, but the section and rate should come from your CA.

Is the equalisation levy still charged on online ads?

No. The 6% equalisation levy on online advertising was abolished from 1 April 2025, so it no longer applies to new payments to foreign ad platforms.

Keep the tax side as tidy as the campaigns

Clean billing is part of running ads properly: accounts and payment profiles in your name, your GSTIN on every invoice, and spend reported separately from fees. That's how our Meta and Google ads management is set up, and our guide to ad account ownership explains why. Get in touch if you'd like us to review your current setup.