Why "Google Tax" Quietly Disappeared From India's Tax Code

Is the Equalisation Levy still applicable in India in 2026? No, and it hasn't been since April 1, 2025. If you're an Indian business that used to deduct 6% before paying Google, Meta, or any foreign digital ad platform, that deduction is gone. If you run an e-commerce operation and once tracked a 2% levy on foreign platform transactions, that disappeared even earlier, from August 1, 2024. Together, these two changes mean India's entire "Google Tax" framework, officially called the Equalisation Levy, no longer exists anywhere in Indian tax law.

This piece walks through what the Equalisation Levy actually was, the exact dates each part of it ended, why the government pulled it, and what digital taxation in India looks like now that it's gone.

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