Skype subscriptions in India gets expensive as it comes under the ambit of GST

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In order to meet new Indian tax requirements, Skype will be required to remit Goods and Services Tax (GST) for customers in India on all purchase of Skype paid products from July 1.

While Skype will delay charging the users the increased GST until August 1, 2017 and Microsoft will bear the GST expenses, from August 1, the subscription price will change to include the GST rate of 18%.

For example, before August, if a subscription costs 22.60 (no GST is charged), the same subscription will cost ₹26.67 (₹22.60 + ₹4.07 GST at 18%).

Since the Pay As You Go rates are inclusive of taxes, there will be a small increase to the inclusive rates for PAYG calls. The taxes on subscriptions and Skype Numbers of course is charged at the time of purchase or renewal.

While GST is not charged when you buy (or allocate) Skype Credit or when your Skype Credit is automatically topped up, the applicable GST-inclusive rates are applied when you use your Skype Credit to make calls, send SMS, use Skype Wi-Fi or any other paid Skype products.

Skype will determine if you are eligible to pay Indian GST based on your billing address. If you do not agree with this change, you can cancel your subscription prior to August 1.