Subscription Agreement (India)
SUBSCRIPTION AGREEMENT
Governed by the Indian Contract Act 1872
This Subscription Agreement is entered into on [Agreement Date] at [Agreement City] between:
(1) [Provider Name] (CIN: [Provider CIN], GSTIN: [Provider GSTIN]), having its registered office at [Provider Address] (hereinafter referred to as "the Service Provider"); and
(2) [Subscriber Name] (GSTIN: [Subscriber GSTIN]), having its registered office at [Subscriber Address] (hereinafter referred to as "the Subscriber").
The Service Provider and the Subscriber are collectively referred to as the "Parties" and individually as a "Party".
1. SUBSCRIPTION AND SERVICES
1.1 The Service Provider grants the Subscriber access to [Service Name] for an initial term of [Subscription Term] commencing on the date of this Agreement.
1.2 The service includes the following features: [Service Description]
1.3 Auto-Renewal: [Auto Renewal]. The Service Provider shall provide the Subscriber with written notice of the upcoming renewal at least 15 days before the renewal date. Any change in subscription fee for the renewal period shall be communicated at least 30 days in advance.
1.4 The Subscriber may cancel this Agreement by providing [Notice Period] written notice to the Service Provider before the end of the then-current subscription term.
2. SERVICE LEVELS AND AVAILABILITY
2.1 The Service Provider shall use commercially reasonable efforts to ensure the service is available at least 99.5% of the time in any given calendar month, excluding scheduled maintenance windows notified at least 48 hours in advance.
2.2 In the event of service unavailability beyond the committed uptime, the Subscriber may be entitled to service credits as set out in the Service Provider's current SLA policy, incorporated herein by reference.
2.3 The Service Provider shall notify the Subscriber of any planned maintenance that may affect service availability at least 48 hours in advance.
3. PAYMENT TERMS
3.1 The Subscriber shall pay the subscription fee of [Subscription Fee] (exclusive of GST), billed [Billing Cycle]. Payment is due within 15 days of receipt of invoice.
3.2 The Service Provider shall raise GST-compliant invoices. GST at 18% shall be charged on all subscription invoices under the CGST Act 2017.
3.3 The Subscriber shall deduct TDS at 10% under Section 194J of the Income Tax Act 1961 on subscription fees for technical/professional services and shall deposit the same with the Income Tax Department by the 7th of the following month, providing Form 16A to the Service Provider.
3.4 The Service Provider may suspend access to the service upon 15 days' written notice if payment is not received within 30 days of the invoice due date, without prejudice to its right to claim the outstanding amounts.
4. DATA PROTECTION AND SECURITY
4.1 The Service Provider shall comply with the Information Technology Act 2000 and the IT (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules 2011 in respect of all Subscriber data processed on the Service Provider's systems.
4.2 The Service Provider shall notify the Subscriber within 72 hours of becoming aware of any security breach affecting the Subscriber's data.
4.3 Upon termination of this Agreement, the Service Provider shall provide the Subscriber with an export of all Subscriber data in a standard machine-readable format within 30 days of termination, and shall thereafter securely delete Subscriber data from its systems.
5. INTELLECTUAL PROPERTY
5.1 The Service Provider retains all intellectual property rights in the service, software, and documentation. The Subscriber receives a limited, non-exclusive, non-transferable licence to access and use the service solely for its internal business purposes during the subscription term.
5.2 The Subscriber retains all intellectual property rights in its data. The Service Provider acquires no rights to Subscriber data beyond those required to provide the service.
5.3 The Subscriber shall not reverse-engineer, decompile, or attempt to derive the source code of the service.
6. GOVERNING LAW AND DISPUTE RESOLUTION
6.1 This Agreement is governed by the Indian Contract Act 1872 and the laws of India.
6.2 Disputes shall be resolved by arbitration under the Arbitration and Conciliation Act 1996, with the seat of arbitration at [Agreement City].
Service Provider (Authorised Signatory)
________________
Signature
Subscriber (Authorised Signatory)
________________
Signature
What Is a Subscription Agreement (India)?
A Subscription Agreement in India records the bargain between the parties, fixing their respective rights, duties and remedies.
Governed by the Indian Contract Act 1872, this agreement establishes the subscription tier, features included, pricing, billing cycle, auto-renewal terms, cancellation policy, data protection obligations, and governing law. India's digital economy has made subscription-based business models ubiquitous — from enterprise SaaS to consumer streaming — and a properly drafted subscription agreement is essential for both commercial certainty and regulatory compliance.
Key legal considerations include: GST at 18% on most subscription services under the CGST Act 2017; RBI e-mandate regulations governing recurring payment authorisations; data protection obligations under the IT Act 2000 and forthcoming DPDPA 2023; and consumer protection requirements under the Consumer Protection Act 2019 regarding auto-renewal disclosure and cancellation rights.
A well-drafted subscription agreement provides both parties with clarity on their rights and obligations, reduces billing disputes, and confirms compliance with India's evolving digital regulatory framework.
The legal framework governing the Subscription Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Subscription Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Indian Contract Act, 1872 sets the foundational requirements.
When Do You Need a Subscription Agreement (India)?
You need an India Subscription Agreement whenever you provide or receive services on a recurring subscription basis. This includes SaaS product subscriptions (CRM, accounting, project management, HR software), streaming media subscriptions, online learning course access, professional association memberships, newsletter or content subscriptions, and API access agreements.
You need this agreement when auto-renewal is a feature of the service. Without clear written terms, auto-renewal clauses may be unenforceable or challenged under the Consumer Protection Act 2019, particularly if the subscriber was not given adequate prior notice of the renewal and the applicable cancellation window.
You need this agreement for data protection compliance. Subscription services that collect subscriber personal data (email, phone, payment details, usage data) must document their data processing obligations under the IT Act 2000 SPDI Rules and the forthcoming DPDPA 2023.
You need this agreement to establish GST compliance. The subscription service provider must properly document GST rates, invoicing obligations, and (for international subscribers or foreign OIDAR services) the applicable Reverse Charge Mechanism treatment.
Parties in India should prepare a Subscription Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Subscription Agreement (India)
A thorough India Subscription Agreement should contain the following key elements.
Parties: Full legal names, addresses, PAN, and GSTIN of both the service provider and the subscriber.
Subscription Details: Service or product subscribed to, subscription tier (if tiered pricing), features included at the subscribed tier, and access terms.
Billing and Pricing: Subscription fee in INR, billing cycle (monthly, quarterly, annual), invoicing date, payment methods accepted (credit/debit card, UPI, NEFT/RTGS, cheque), and GST at 18% under CGST Act 2017.
Auto-Renewal: Clear disclosure of auto-renewal terms, advance notice period before renewal, price change notification, and mechanism to cancel before renewal.
Cancellation and Refunds: Cancellation notice period, prorated refund policy (if any), consequences of non-payment, and suspension vs. termination procedures.
Service Levels: Uptime commitments, scheduled maintenance windows, support availability, and remedies for SLA breaches.
Data Protection: Data collection and processing under IT Act 2000 and SPDI Rules 2011, subscriber's rights to access and delete data, data retention policy, and security measures.
Intellectual Property: Service provider's IP ownership; subscriber's licence to use the service; restrictions on reproduction, reverse engineering, or redistribution.
Governing Law: Indian law, dispute resolution, and jurisdiction of courts.
Additional compliance elements for a Subscription Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Subscription Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/business/contracts/subscription-agreement-india
"Subscription Agreement (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/business/contracts/subscription-agreement-india.
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year = {2026},
howpublished = {\url{https://forms-legal.com/india/business/contracts/subscription-agreement-india}},
note = {Free legal document template. Based on Indian Contract Act, 1872}
}Also available for these jurisdictions:
Frequently Asked Questions
Auto-renewal of subscriptions in India is governed by a combination of the Indian Contract Act 1872, the Consumer Protection Act 2019, and the Reserve Bank of India (RBI) regulations on recurring payment mandates. Understanding these frameworks is essential for both subscription service providers and subscribers. Under the Indian Contract Act 1872, for an auto-renewal clause to be enforceable, it must form part of the original contract and the subscriber must have had reasonable notice of the auto-renewal provision at the time of entering the agreement. An auto-renewal clause buried in fine print that was not reasonably brought to the subscriber's attention may be challenged under Section 13 (free consent) on the grounds of insufficient notice. The Consumer Protection Act 2019 strengthens consumer protections. Subscription services directed at consumers must provide: (i) clear disclosure of the auto-renewal terms and the applicable renewal price before the initial subscription is activated; (ii) reasonable advance notice (typically 15–30 days) of the upcoming renewal, particularly if the renewal price has changed; (iii) a simple mechanism for cancellation that does not create unreasonable barriers. The Central Consumer Protection Authority (CCPA) has enforcement authority over unfair trade practices in the digital economy, including subscription traps.
GST on subscription services in India is governed by the Central Goods and Services Tax Act 2017 (CGST Act) and, for inter-state transactions, the Integrated Goods and Services Tax Act 2017 (IGST Act). The applicable GST rate and the responsibility for payment depend on the nature of the subscription, the parties involved, and whether the service provider is located in India or abroad. GST Rate: Most subscription services — SaaS, streaming media, online learning platforms, news subscriptions, professional membership subscriptions, and software licences — are taxable at 18% GST under the general services category. Some specific categories attract different rates: (i) Subscription to newspapers, books, and periodicals: exempt from GST under Entry 66 of the GST Exemption List (for print); (ii) Subscription to online newspapers and digital news content: 18% GST; (iii) Subscription to educational services by educational institutions: exempt in certain cases. The Place of Supply rules under the IGST Act determine whether CGST + SGST or IGST applies. For B2B transactions where the recipient is GST-registered, IGST applies for inter-state supplies and the recipient can claim Input Tax Credit (ITC). For B2C transactions with unregistered consumers, CGST + SGST applies where the service is supplied from the same state, and IGST applies for inter-state supply.
Subscription services in India that collect personal data from subscribers are subject to data protection obligations under the Information Technology Act 2000 and the regulations framed thereunder, and prospectively under the Digital Personal Data Protection Act 2023 (DPDPA). Currently operative framework — IT Act 2000 and SPDI Rules 2011: Section 43A of the IT Act 2000 requires bodies corporate that possess, deal with, or handle 'sensitive personal data or information' to implement and maintain reasonable security practices and procedures. The Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules 2011 (SPDI Rules) define sensitive personal data to include: passwords; financial information (bank account, credit card, debit card details); physical, physiological, and mental health conditions; sexual orientation; medical records; and biometric information. Subscription payment information therefore falls within the SPDI Rules. Bodies corporate must: implement ISO/IEC 27001 or an equivalent documented security standard; obtain consent for collection of personal information; provide a privacy policy; allow subscribers to review and correct their data; and limit collection to what is necessary for the subscription purpose. Digital Personal Data Protection Act 2023: The DPDPA, once fully notified, will introduce a comprehensive data protection regime for India.
A Subscription Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Indian Contract Act, 1872 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Subscription Agreement (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Indian Contract Act, 1872, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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