A foreign company providing digital or online services to customers in India, is classified as an OIDAR Service Provider under Indian GST law. The Goods and Services Tax (GST) places special compliance obligations on overseas businesses supplying online information and digital content to non-taxable persons (B2C) in India.
What are OIDAR Services?
OIDAR (Online Information Database Access and Retrieval Services) are services delivered over the internet with minimal human intervention.
These include:
· Streaming platforms (music, movies, videos)
· Online advertisements
· Cloud storage and hosting
· E-learning platforms
· Software downloads / SaaS
· Online games
· Digital subscriptions & e-publications
· Search engine or database access
· Automated digital tools & AI-based services
OIDAR Registration Requirements
Under Section 14 of the IGST Act, any foreign entity providing OIDAR services to non-taxable Indian customers must register for GST, regardless of turnover.
Accordingly, Registration becomes mandatory when –
- Suppliers located outside India.
- Supplier provide digital/online services to customers in India.
- The services are automated and internet-based.
- The customers include individuals or non-GST registered entities.
No threshold exemption applies — registration is mandatory from the very first transaction.
OIDAR Compliance Services
1. OIDAR GST Registration
- End-to-end assistance with online OIDAR registration.
- Authorized Representative in India.
- Documentation and verification of Business.
- Registration process with GST Department.
2. GST Payment & Return Filing (GSTR-5A)
- Monthly filing of GSTR-5A.
- Calculation of IGST payable on digital services.
3. Representation for Overseas Entities
- Compliance with IGST provisions.
- Interpretation of GST rules for digital services.
- Liaison with Indian GST authorities when required.
Required Documents for OIDAR Registration
- Certificate of Incorporation.
- Tax/VAT registration in home country.
- Authorized signatory credentials and Identity Proof.
- Home-country business address proof
- Online services product list/website
- Letter of Authorization for Indian Representative
In a rapidly evolving digital marketplace, compliance with OIDAR regulations is essential for foreign service providers operating in India. We assist in ensuring seamless GST registration, accurate GSTR-5A filing, and complete end-to-end support, enabling global digital businesses to operate confidently and compliantly. With expert guidance and reliable representation, the firm helps clients focus on their core services while it manages the complexities of Indian GST laws.
At Ujjwal Gupta & Co
We, at Ujjwal Gupta & Co, are dedicated to delivering personalized, high-quality solutions tailored to meet your financial and business needs. With our team of professionals and a client-first approach, we ensure that every challenge is met with expert guidance and strategic insight.
We are dedicated to ensuring your business’s success by providing best service practice available in the industry and that too at a cost effective pricing. Our team of experts is excited to work with you and provide the support you need to thrive in the Indian business landscape.
Our only motive is to create Value for Our Clients and accordingly, have a Client Value System at our Office.
So, let us help you navigate the complexities of finance and compliance, empowering you to focus on what matters most — growing your business. Get in touch today, and take the first step towards financial peace of mind.
OIDAR stands for Online Information Database Access and Retrieval Services, which include automated digital services delivered over the internet with minimal human involvement—such as streaming, SaaS, cloud storage, e-learning, online games, and digital subscriptions.
Any foreign company providing digital services to non-taxable Indian customers (B2C) must register for GST in India. There is no threshold exemption—registration is mandatory from the first transaction.
Yes. Even without a physical presence, foreign OIDAR service providers must register for GST and appoint an Authorized Representative in India.
OIDAR services are generally subject to 18% IGST, unless specifically exempted.
Foreign OIDAR service providers must file GSTR-5A, which contains details of taxable supplies and IGST paid for the period.
Typically required documents include:
- Certificate of incorporation
- Tax/Business registration in the home country
- Passport of authorized signatory
- Business address proof
- Website URL or service description
- Letter of authorization for Indian representative
Payments are made through the GST portal using international payment options or via an Indian Authorized Representative who can facilitate the payment on behalf of the foreign entity.
Non-compliance can lead to:
- Penalties
- Interest on tax dues
- Blocking of services in India
- Notices from GST authorities
Compliance is strongly recommended to avoid legal risks.
Yes. Foreign OIDAR providers must issue GST-compliant invoices showing:
- Value of service
- IGST charged
- GSTIN of OIDAR provider
- Place of supply (India)
No. Foreign OIDAR service providers cannot claim ITC since they are not engaged in taxable supplies within India and are registered under a special category GST registration.
Why Choose UGC?
Client Centric Approach
Client is the key driver of our service offerings. Our approach to service offerings is based on a client centric and customized approach. Our specialized teams are a mix of technical and industry experience in order to serve clientele for their specific needs.
Team Work
We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, social and ethnic backgrounds. We believe diversification plays a vital role in motivating the team.
Quick Turnaround
We always endeavour for a quick turnaround time to serve our clientele. We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.
Open Communications
We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele. We are committed to ensuring transparency in communication, service offerings and delivery. Our only motive is to provide professional services to our clients.
Client Value System
We value for the Client time and thus, we offer services that are value for money. Quality professional services are provided to our clients, so that they are able to achieve their desired results. We are a quality trademark in the industry and thus, our clients count on us always.
Quality in Delivering Work
Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.
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