diff --git a/pkg/model/context.go b/pkg/model/context.go
index 90990d183a98f..aade9c9e055eb 100644
--- a/pkg/model/context.go
+++ b/pkg/model/context.go
@@ -33,6 +33,7 @@ import (
 	"k8s.io/kops/upup/pkg/fi"
 	"k8s.io/kops/upup/pkg/fi/cloudup/awstasks"
 	"k8s.io/kops/upup/pkg/fi/cloudup/awsup"
+	"k8s.io/kops/upup/pkg/fi/cloudup/gce"
 	"k8s.io/kops/upup/pkg/fi/cloudup/hetzner"
 	"k8s.io/kops/upup/pkg/fi/cloudup/scaleway"
 
@@ -145,6 +146,8 @@ func (b *KopsModelContext) NodeInstanceGroups() []*kops.InstanceGroup {
 }
 
 // CloudTagsForInstanceGroup computes the tags to apply to instances in the specified InstanceGroup
+//
+// TODO: The cloud provider specific logic should be moved to relevant model packages.
 func (b *KopsModelContext) CloudTagsForInstanceGroup(ig *kops.InstanceGroup) (map[string]string, error) {
 	labels := b.CloudTags(b.AutoscalingGroupName(ig), false)
 
@@ -178,6 +181,8 @@ func (b *KopsModelContext) CloudTagsForInstanceGroup(ig *kops.InstanceGroup) (ma
 		switch b.Cluster.GetCloudProvider() {
 		case kops.CloudProviderHetzner:
 			labels[hetzner.TagKubernetesNodeLabelPrefix+k] = v
+		case kops.CloudProviderGCE:
+			// TODO: Do nothing for now while we figure out how to address GCE label length limit of 63
 		default:
 			labels[nodeidentityaws.ClusterAutoscalerNodeTemplateLabel+k] = v
 		}
@@ -196,6 +201,15 @@ func (b *KopsModelContext) CloudTagsForInstanceGroup(ig *kops.InstanceGroup) (ma
 		labels[hetzner.TagKubernetesInstanceRole] = string(ig.Spec.Role)
 		labels[hetzner.TagKubernetesClusterName] = b.ClusterName()
 		labels[hetzner.TagKubernetesInstanceGroup] = ig.Name
+	case kops.CloudProviderGCE:
+		clusterLabel := gce.LabelForCluster(b.ClusterName())
+		roleLabel := gce.GceLabelNameRolePrefix + ig.Spec.Role.ToLowerString()
+		labels[clusterLabel.Key] = clusterLabel.Value
+		labels[roleLabel] = ig.Spec.Role.ToLowerString()
+		labels[gce.GceLabelNameInstanceGroup] = ig.ObjectMeta.Name
+		if ig.Spec.Role == kops.InstanceGroupRoleControlPlane {
+			labels[gce.GceLabelNameRolePrefix+"master"] = "master"
+		}
 	default:
 		// The system tags take priority because the cluster likely breaks without them...
 
diff --git a/pkg/model/gcemodel/autoscalinggroup.go b/pkg/model/gcemodel/autoscalinggroup.go
index f36eb49d98954..788e974404860 100644
--- a/pkg/model/gcemodel/autoscalinggroup.go
+++ b/pkg/model/gcemodel/autoscalinggroup.go
@@ -220,16 +220,6 @@ func (b *AutoscalingGroupModelBuilder) buildInstanceTemplate(c *fi.CloudupModelB
 		case kops.InstanceGroupRoleBastion:
 			t.Tags = append(t.Tags, b.GCETagForRole(kops.InstanceGroupRoleBastion))
 		}
-		clusterLabel := gce.LabelForCluster(b.ClusterName())
-		roleLabel := gce.GceLabelNameRolePrefix + ig.Spec.Role.ToLowerString()
-		t.Labels = map[string]string{
-			clusterLabel.Key:              clusterLabel.Value,
-			roleLabel:                     ig.Spec.Role.ToLowerString(),
-			gce.GceLabelNameInstanceGroup: ig.ObjectMeta.Name,
-		}
-		if ig.Spec.Role == kops.InstanceGroupRoleControlPlane {
-			t.Labels[gce.GceLabelNameRolePrefix+"master"] = "master"
-		}
 
 		if gce.UsesIPAliases(b.Cluster) {
 			t.CanIPForward = fi.PtrTo(false)
@@ -248,11 +238,11 @@ func (b *AutoscalingGroupModelBuilder) buildInstanceTemplate(c *fi.CloudupModelB
 
 		t.ServiceAccounts = append(t.ServiceAccounts, b.LinkToServiceAccount(ig))
 
-		// labels, err := b.CloudTagsForInstanceGroup(ig)
-		// if err != nil {
-		//	return fmt.Errorf("error building cloud tags: %v", err)
-		// }
-		// t.Labels = labels
+		labels, err := b.CloudTagsForInstanceGroup(ig)
+		if err != nil {
+			return nil, fmt.Errorf("error building cloud tags: %v", err)
+		}
+		t.Labels = labels
 
 		t.GuestAccelerators = []gcetasks.AcceleratorConfig{}
 		for _, accelerator := range ig.Spec.GuestAccelerators {
diff --git a/tests/integration/update_cluster/ha_gce/kubernetes.tf b/tests/integration/update_cluster/ha_gce/kubernetes.tf
index 790f077a6bd2b..3703551febde9 100644
--- a/tests/integration/update_cluster/ha_gce/kubernetes.tf
+++ b/tests/integration/update_cluster/ha_gce/kubernetes.tf
@@ -780,9 +780,10 @@ resource "google_compute_instance_template" "nodes-ha-gce-example-com" {
     type                   = "PERSISTENT"
   }
   labels = {
-    "k8s-io-cluster-name"   = "ha-gce-example-com"
-    "k8s-io-instance-group" = "nodes"
-    "k8s-io-role-node"      = "node"
+    "k8s-io-cluster-name"                             = "ha-gce-example-com"
+    "k8s-io-instance-group"                           = "nodes"
+    "k8s-io-role-node"                                = "node"
+    "k8s.io/cluster-autoscaler/node-template/taint/a" = "b:c"
   }
   lifecycle {
     create_before_destroy = true
diff --git a/tests/integration/update_cluster/minimal_gce/in-v1alpha2.yaml b/tests/integration/update_cluster/minimal_gce/in-v1alpha2.yaml
index cdd1b578726e0..cb0341b8b8b42 100644
--- a/tests/integration/update_cluster/minimal_gce/in-v1alpha2.yaml
+++ b/tests/integration/update_cluster/minimal_gce/in-v1alpha2.yaml
@@ -62,6 +62,8 @@ metadata:
   name: master-us-test1-a
 spec:
   image: ubuntu-os-cloud/ubuntu-2004-focal-v20221018
+  cloudLabels:
+    testCloudLabel: foobar
   machineType: e2-medium
   maxSize: 1
   minSize: 1
diff --git a/tests/integration/update_cluster/minimal_gce/kubernetes.tf b/tests/integration/update_cluster/minimal_gce/kubernetes.tf
index 3cc206ee153eb..7112abd9be46d 100644
--- a/tests/integration/update_cluster/minimal_gce/kubernetes.tf
+++ b/tests/integration/update_cluster/minimal_gce/kubernetes.tf
@@ -446,6 +446,7 @@ resource "google_compute_instance_template" "master-us-test1-a-minimal-gce-examp
     "k8s-io-instance-group"     = "master-us-test1-a"
     "k8s-io-role-control-plane" = "control-plane"
     "k8s-io-role-master"        = "master"
+    "testCloudLabel"            = "foobar"
   }
   lifecycle {
     create_before_destroy = true