diff --git a/pkg/annotations/gcp.go b/pkg/annotations/gcp.go
new file mode 100644
index 000000000..318a3b1bf
--- /dev/null
+++ b/pkg/annotations/gcp.go
@@ -0,0 +1,143 @@
+package annotations
+
+import (
+	"context"
+	"fmt"
+	"time"
+
+	configv1 "github.com/openshift/api/config/v1"
+	corev1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/client/config"
+
+	"sigs.k8s.io/controller-runtime/pkg/envtest/komega"
+
+	"github.com/openshift/cluster-api-actuator-pkg/pkg/framework"
+
+	g "github.com/onsi/ginkgo/v2"
+	o "github.com/onsi/gomega"
+)
+
+var (
+	annotationsToTest = map[string][]string{
+		"traffic-policy.network.alpha.openshift.io/local-with-fallback": {"true"},
+		"alpha.cloud.google.com/load-balancer-backend-share":            {""},
+		"networking.gke.io/internal-load-balancer-allow-global-access":  {"true"},
+		"networking.gke.io/internal-load-balancer-subnet":               {""},
+		"cloud.google.com/network-tier":                                 {"Standard", "Premium", "InvalidValue"},
+	}
+)
+
+const (
+	namespace = "openshift-machine-api"
+)
+
+var cl client.Client
+
+var _ = g.Describe("Service Annotation tests GCP", framework.LabelCCM, framework.LabelDisruptive, g.Ordered, func() {
+	var (
+		ctx             context.Context
+		platform        configv1.PlatformType
+		createdServices []string
+	)
+
+	g.BeforeAll(func() {
+		cfg, err := config.GetConfig()
+		o.Expect(err).ToNot(o.HaveOccurred(), "Failed to GetConfig")
+
+		cl, err = client.New(cfg, client.Options{})
+		o.Expect(err).NotTo(o.HaveOccurred(), "Failed to create Kubernetes client for test")
+		komega.SetClient(cl)
+		ctx = framework.GetContext()
+		platform, err = framework.GetPlatform(ctx, cl)
+		fmt.Println("platform is ", platform)
+		o.Expect(err).ToNot(o.HaveOccurred(), "Failed to get platform")
+		if platform != configv1.GCPPlatformType {
+			g.Skip("Skipping GCP E2E tests")
+		}
+
+	})
+
+	g.AfterAll(func() {
+		for _, svcName := range createdServices {
+			service := &corev1.Service{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:      svcName,
+					Namespace: namespace,
+				},
+			}
+			_ = cl.Delete(ctx, service)
+		}
+	})
+
+	g.It("should validate annotations including network-tier and IP changes", func() {
+		g.By("Create service without annotations")
+		service := &corev1.Service{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "test-service-annotation-validation",
+				Namespace: namespace,
+			},
+			Spec: corev1.ServiceSpec{
+				Type:     corev1.ServiceTypeLoadBalancer,
+				Selector: map[string]string{"app": "test"},
+				Ports: []corev1.ServicePort{{
+					Port: 80,
+				}},
+			},
+		}
+		o.Expect(cl.Create(ctx, service)).To(o.Succeed())
+		createdServices = append(createdServices, service.Name)
+
+		var lastIngressIP string
+		o.Eventually(func() (string, error) {
+			updatedService := &corev1.Service{}
+			err := cl.Get(ctx, client.ObjectKey{Name: service.Name, Namespace: namespace}, updatedService)
+			if err != nil {
+				return "", fmt.Errorf("failed to get updated service: %w", err)
+			}
+			if len(updatedService.Status.LoadBalancer.Ingress) > 0 {
+				lastIngressIP = updatedService.Status.LoadBalancer.Ingress[0].IP
+				return lastIngressIP, nil
+			}
+
+			return "", nil
+		}, 2*time.Minute, 10*time.Second).ShouldNot(o.BeEmpty(), "LoadBalancer service did not get an external IP")
+
+		for key, values := range annotationsToTest {
+			for _, value := range values {
+				g.By(fmt.Sprintf("Adding annotation: %s=%s", key, value))
+				latestService := &corev1.Service{}
+				o.Expect(cl.Get(ctx, client.ObjectKey{Name: service.Name, Namespace: namespace}, latestService)).To(o.Succeed())
+
+				if latestService.Annotations == nil {
+					latestService.Annotations = make(map[string]string)
+				}
+				latestService.Annotations[key] = value
+
+				if key == "cloud.google.com/network-tier" && value != "Standard" && value != "Premium" {
+					o.Expect(cl.Update(ctx, latestService)).ToNot(o.Succeed(), "The annotation 'cloud.google.com/network-tier', if specified, must be either 'Standard' or 'Premium'")
+					continue
+				}
+
+				o.Expect(cl.Update(ctx, latestService)).To(o.Succeed())
+
+				if key == "cloud.google.com/network-tier" {
+					g.By(fmt.Sprintf("Validating Ingress IP change after annotation update: %s=%s", key, value))
+					o.Eventually(func() (string, error) {
+						updatedService := &corev1.Service{}
+						err := cl.Get(ctx, client.ObjectKey{Name: service.Name, Namespace: namespace}, updatedService)
+						if err != nil {
+							return "", fmt.Errorf("failed to get updated service: %w", err)
+						}
+						if len(updatedService.Status.LoadBalancer.Ingress) > 0 {
+							return updatedService.Status.LoadBalancer.Ingress[0].IP, nil
+						}
+
+						return "", nil
+					}, 4*time.Minute, 10*time.Second).ShouldNot(o.Equal(lastIngressIP), "Ingress IP did not change after annotation update")
+				}
+			}
+		}
+	})
+})
diff --git a/pkg/e2e_test.go b/pkg/e2e_test.go
index 19d733db9..f41cde4a0 100644
--- a/pkg/e2e_test.go
+++ b/pkg/e2e_test.go
@@ -19,6 +19,7 @@ import (
 	gcpv1 "sigs.k8s.io/cluster-api-provider-gcp/api/v1beta1"
 	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
 
+	_ "github.com/openshift/cluster-api-actuator-pkg/pkg/annotations"
 	_ "github.com/openshift/cluster-api-actuator-pkg/pkg/autoscaler"
 	_ "github.com/openshift/cluster-api-actuator-pkg/pkg/capi"
 	_ "github.com/openshift/cluster-api-actuator-pkg/pkg/infra"
@@ -51,6 +52,10 @@ func init() {
 		klog.Fatal(err)
 	}
 
+	if err := gcpv1.AddToScheme(scheme.Scheme); err != nil {
+		klog.Fatal(err)
+	}
+
 	if err := awsv1.AddToScheme(scheme.Scheme); err != nil {
 		klog.Fatal(err)
 	}