Page Contents
Online Information Database Access and Retrieval (OIDAR) refers to services delivered over the internet in an automated way, with minimal human intervention, and that would not be possible without IT. Examples: Internet advertising, Cloud services, E-books, movies, music, software downloads, Online gaming, Digital data storage. If the service cannot be provided without IT and runs automatically → it qualifies as OIDAR.
Services can be provided from outside India to Indian consumers.
If Indian providers pay GST but foreign ones don’t, it creates an unfair tax advantage.
To ensure tax neutrality, GST applies even to overseas suppliers, through simplified registration.
Indian providers of such services already pay GST. If overseas suppliers were excluded, it would give them an unfair advantage. Hence, India brought overseas OIDAR suppliers into the GST net via special registration and compliance rules.
Supplier & recipient both in India → Normal GST rules apply.
Supplier outside India, recipient in India → Place of supply is India, hence taxable.
Recipient is a business (registered) : GST under Reverse Charge Mechanism (RCM).
Recipient is an individual consumer (unregistered) : Overseas supplier must pay GST in India.
Taxpayer must register under Simplified Registration Scheme (Form GST REG-10). Jurisdiction: Principal Commissioner of Central Tax, Bengaluru West. Options Register directly, OR Appoint a local representative in India who registers & pays tax.
Must register under Simplified Registration Scheme (Form GST REG-10).
Registration is with Principal Commissioner of Central Tax, Bengaluru West.
If no presence in India → must appoint a representative in India to pay GST.
OIDAR suppliers outside India (to non-taxable recipients in India) → File GSTR-5A monthly (by 20th of next month).
If supplying from within India → File regular GST returns (GSTR-1, 3B, etc.).
If supplying to Indian businesses (B2B), the Indian recipient pays tax under RCM, so no GSTR-5A filing required.
Examples of OIDAR services like following services Provided by
Automatic downloads (PDFs, stock images, software updates).
Online courses (pre-recorded, automated).
Online games, music, films, gambling.
Automated distance teaching & e-classrooms.
Search engines, banner ads, subscription-based digital content.
Exposure to Indian tax notices & penalties.
Payments from Indian consumers could face disputes if GST liability isn’t discharged.
Reputation risk with Indian authorities & banking channels.
This is to be consider that Not OIDAR if significant human intervention is involved (e.g., live tutor, custom reports).
Loan Against Shares Interest Rates Explained: What Investors Should Know In India’s dynamic financial market, investors often look for flexible… Read More
Why and How to Avoid Useless Expenses This Diwali – A Nature Lover’s Perspective October 2025 Diwali, the festival of… Read More
How to manage repayments effectively on a personal loan of three lakhs Taking a Rs. 3 lakh personal loan can… Read More
Procedure of Member’s Voluntary Winding Up under the Companies Act, 1956 A Members’ Voluntary Winding Up is a mode of… Read More
Top 10 Financial Transactions That Can Trigger Income Tax Scrutiny : The Income Tax Department keeps a close watch on… Read More
Overview of the Internal Audit Iceberg Concept Apache Iceberg introduces a powerful feature called Integrated Audits, which allows organizations to… Read More