I recently got a GST number for my business in India. Before getting the GST number, I used to be charged 18% on my credit recharges. But after adding the GST number in the billing details for my company, that 18% has been removed. Why is this happening? Isn’t OpenAI supposed to be charging me GST for the invoice?
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By providing your business tax ID, you should now be then collecting tax from customers and turning over that required sales tax yourself.
That allows you more control of who it must be collected from. If you are an Indian national, but your customer, servers, company division, are all in Australia, for example, the law requiring collection might have specific provisions. Or like OpenAI, you then have to consider the destination country’s tax regime.
BTW: If you are marking up services 50% with your value-add, tax on YOUR billings pays more to the government. The smart government gets more from end purchase taxes than early tariffs.
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