OIDAR GST Registration & Compliance

Q: What qualifies as an OIDAR service under Indian GST?

OIDAR services are automated internet-delivered services including cloud, SaaS, streaming, e-learning, online gaming, and digital advertising. Physical goods ordered online are not OIDAR.

Q: Does an OIDAR provider need to charge GST on B2B supplies to Indian businesses?

No. B2B OIDAR supplies to GST-registered Indian businesses fall under reverse charge. The Indian recipient pays the IGST; the foreign provider does not collect it.

Q: What is the GST rate on OIDAR services?

OIDAR services supplied to Indian non-business consumers attract IGST at 18%, applicable uniformly to streaming, SaaS, gaming, cloud, and other digital services.

Q: Can an OIDAR provider use an intermediary to collect and remit GST?

Yes. If an Indian e-commerce operator controls the payment process, the intermediary may be responsible for GST. The supply chain structure must be assessed to determine who holds the obligation.

Q: What are the penalties for non-registration as an OIDAR service provider?

Penalties include the uncollected tax plus 18% interest. The Indian government may also block access to non-compliant digital platforms within India.

GST Obligations for Overseas Digital Service Providers Supplying to Indian Consumers

OIDAR (Online Information and Database Access or Retrieval) services are digital services delivered over the internet with minimal human intervention. Under Indian GST law, foreign companies providing OIDAR services directly to non-business consumers (B2C) in India are required to register under GST and collect and remit 18% IGST on such supplies — regardless of their turnover or the absence of a physical presence in India.

OIDAR services include cloud computing, online gaming, digital advertising, streaming platforms, SaaS products, e-learning content, app stores, and database access services. India's OIDAR framework, modelled on global digital services tax principles, ensures a level playing field between foreign digital providers and domestic businesses. We assist overseas companies with OIDAR registration, monthly GSTR-5A filing, and ongoing GST compliance. Related registrations for foreign businesses include Non-Resident Taxable Person (NRTP) registration and standard GST registration for entities with a permanent establishment in India.

Our OIDAR Compliance Services

OIDAR GST Registration

End-to-end assistance with registering as an OIDAR service provider on the Indian GST portal, including document preparation and portal navigation for foreign entities.

GST Rate & SAC Classification

Determining the correct GST rate and SAC code for each category of digital service supplied, ensuring accurate tax computation and invoice compliance.

GSTR-5A Monthly Return Filing

Preparation and filing of monthly GSTR-5A returns reporting outward supplies and tax payments by OIDAR providers to the Indian GST department.

Tax Payment Assistance

Guidance on remitting IGST to the Indian government in Indian Rupees or through approved payment channels as required under the OIDAR provisions.

Invoice & Documentation Compliance

Setting up compliant invoice formats for B2C digital supplies, including required GST fields for services delivered to Indian consumers.

B2B Supply Structuring

Advice on structuring supplies to Indian business entities (B2B) under reverse charge, avoiding dual registration requirements where possible.

Key Facts About OIDAR GST Compliance

OIDAR registration is mandatory for B2C digital service providers regardless of turnover threshold
IGST at 18% applies on the value of OIDAR services supplied to Indian non-business consumers
B2B OIDAR supplies to Indian GST-registered businesses are covered under reverse charge — the Indian recipient pays the tax
Non-compliance with OIDAR GST obligations can lead to blocking of services or penalties under Indian law
Monthly GSTR-5A filing is mandatory even in periods with nil supplies in India
OIDAR providers must maintain records of Indian consumers served for at least five years

Frequently Asked Questions

What qualifies as an OIDAR service under Indian GST?

OIDAR services are those delivered over the internet or electronic network and are essentially automated, requiring minimal human intervention. Examples include advertising on the internet, cloud services, e-books, movies and music streaming, online gaming, distance learning, and SaaS products. Physical goods or services that merely use the internet for order booking do not qualify as OIDAR.

Does an OIDAR provider need to charge GST on B2B supplies to Indian businesses?

No. When an OIDAR service is supplied to a GST-registered Indian business entity, the supply falls under the reverse charge mechanism. The Indian recipient is responsible for paying IGST on the import of services. The foreign OIDAR provider does not charge or collect GST on such B2B transactions.

What is the GST rate on OIDAR services?

OIDAR services supplied to non-business consumers in India attract IGST at 18%. This is the standard rate for digital and online services and applies uniformly across all categories of OIDAR, including streaming, SaaS, gaming, advertising, and cloud computing services.

Can an OIDAR provider use an intermediary to collect and remit GST?

Yes. If the digital services are supplied through an e-commerce operator or intermediary platform located in India that controls the payment process, the intermediary may be responsible for collecting and remitting GST. The OIDAR provider must assess the supply chain structure to determine where the GST obligation lies.

What are the penalties for non-registration as an OIDAR service provider?

Failure to register and comply with OIDAR GST obligations can attract penalties equivalent to the uncollected tax along with interest at 18% per annum. The Indian government may also take measures including blocking access to non-compliant platforms or services within Indian jurisdiction under the applicable regulations.

OIDAR GST Compliance for Your Digital Business

Registration, return filing, and tax payment support for overseas digital service providers in India.