Website development in India attracts GST at 18%, and most quotes are stated exclusive of it — so a ₹25,000 quote becomes a ₹29,500 invoice. Ask one question before you commit and the surprise disappears.
We’re not tax advisers and this isn’t tax advice; what you can claim depends on your registration and your books. Ask your CA. What follows is about reading a quote correctly.
The moment it happens
The 18% GST surprise arrives with the invoice. You agreed ₹25,000. The bill says ₹29,500. Nothing improper has happened — the quote was exclusive of tax and nobody said so out loud.
It’s a small amount in absolute terms and it lands badly because it’s unexpected, and because it arrives at the moment you’re already deciding whether you’ve been dealt with straight.
Why it happens
Quotes are usually stated exclusive. Standard commercial practice, and vendors assume it’s understood. First-time buyers assume the number they were given is the number they’ll pay.
Verbal quotes make it worse. “It’ll be twenty-five” on a phone call has no line for tax. A written quotation almost always says “plus GST” somewhere.
The vendor’s registration status matters. A GST-registered firm must charge it. An unregistered small vendor won’t — which is why some quotes look cheaper and come without an invoice, a trade-off worth understanding separately.
The arithmetic
| Quoted amount | GST at 18% | You pay |
|---|---|---|
| ₹10,000 | ₹1,800 | ₹11,800 |
| ₹15,000 | ₹2,700 | ₹17,700 |
| ₹25,000 | ₹4,500 | ₹29,500 |
| ₹40,000 | ₹7,200 | ₹47,200 |
Also applies to the recurring items: hosting, domain purchased through a registered reseller, and maintenance charges. So your year-two figure carries it too — worth remembering when you ask for that number.
The one question
Before you agree anything, send this:
Is that price inclusive or exclusive of GST? Please confirm the total payable.
Eight words of substance. It converts a possible surprise into a known figure, and a vendor’s willingness to state a total payable is a small but real test of how they’ll handle the rest of the project.
Ask the same about year two: “What’s the total payable in year two for domain, hosting and maintenance, including GST?”
Can you claim it back?
Depends on your own position, and this is the part to take to your CA:
If you’re GST-registered and the website is used for your business, input tax credit is generally available — which means the 18% is a cash-flow item rather than a cost. For a registered business this changes the whole calculation: the effective price is the base amount.
If you’re not registered, it’s a real cost with no offset.
Either way you need a proper tax invoice with the vendor’s GSTIN, your details, and the tax shown separately. A handwritten receipt or a UPI screenshot is not a tax invoice, and without one there’s nothing to claim.
This is the practical argument for insisting on a GST invoice even when a cash price looks cheaper. If you’re registered, the invoiced route may cost you less in net terms — run the numbers with your accountant before assuming the cash price wins.
What a proper invoice should show
Check for these; they’re what make it usable:
- The vendor’s registered name and GSTIN
- Your business name, address and GSTIN if you have one
- A description of the service
- The taxable value, the GST rate, and the tax amount separately
- Invoice number and date
- The total payable
If any of these is missing, ask for a corrected invoice. It’s a routine request and it’s easier now than at filing time.
Where this fits with the other hidden costs
GST is the most predictable of the additions to a website bill, which makes it the easiest to plan for. The others are worth asking about in the same message:
- Domain and hosting for year one — included or extra?
- Content writing and photographs — included?
- Revision rounds beyond the agreed number
- Business email setup
- Maintenance after launch
One message covering all of them, plus the GST question, gives you the actual total. There’s a fuller piece on the hidden costs specifically.
What to do this week
- Ask every vendor whether the quote is inclusive or exclusive of GST.
- Ask for the total payable, in writing.
- Ask the same for the year-two figure.
- Confirm you’ll receive a proper tax invoice with their GSTIN.
- Ask your CA whether you can claim the input credit.
If you want it done the certain way
Our quotes state the total payable including GST, and the year-two figure the same way — so the invoice matches the number you agreed. Proper tax invoice with GSTIN, which your CA can work with. WhatsApp us; we reply in about five minutes between 9am and 7pm.
Related reading
- The hidden costs of a website
- Why a GST invoice is your best protection
- “Bill ke bina kitna?” — the cash-price question
- What should “all-inclusive” actually include?
FAQ
What is the GST rate on website development in India?
Website design and development services attract GST at 18%. It also applies to hosting and maintenance charges billed by a registered vendor, so your yearly figure carries it too.
Why is my website invoice higher than the quote?
Most quotes are stated exclusive of GST, so 18% is added at invoicing. Asking whether a price is inclusive or exclusive — and requesting the total payable in writing — removes the surprise.
Can I claim GST paid on a website?
If your business is GST-registered and the website is used for business, input tax credit is generally available, making the tax a cash-flow item rather than a cost. You need a proper tax invoice showing the vendor’s GSTIN — check the specifics with your CA.
