OIDAR Services — GST Compliance | Savlana Init

GST Compliance · OIDAR Services

OIDAR & GST — Digital Services. Compliant. Registered.

GST obligations for Online Information Database Access and Retrieval (OIDAR) services — foreign provider registration, reverse charge for Indian businesses, and return filing guidance.

OIDAR (Online Information Database Access and Retrieval) services are a specific category of digital services defined under the GST Act — services delivered over the internet or an electronic network and whose supply is essentially automated, involving minimal human intervention. The category includes cloud computing services, online advertising, digital content streaming, online gaming, e-learning platforms with automated content delivery, database access, and similar services where the service is inherently digital and cannot be provided without information technology.

Under GST, OIDAR services have special rules depending on who the supplier is and who the recipient is. When a foreign company (based outside India) provides OIDAR services to an unregistered Indian consumer (B2C), the foreign provider is required to register under a simplified GST registration process and pay GST on those supplies. When a foreign company provides OIDAR services to a registered Indian business (B2B), the Indian business is liable to pay GST under the Reverse Charge Mechanism (RCM) — the Indian recipient pays the GST rather than the foreign supplier.

Indian businesses subscribed to foreign digital platforms — AWS, Google Cloud, Meta Ads, LinkedIn, Adobe Creative Cloud, Zoom, and similar services — are receiving OIDAR services and are liable to self-assess and pay IGST under RCM on each payment made to the foreign provider. We advise Indian businesses on their OIDAR RCM liability, assist foreign providers with their Indian GST registration, and ensure the correct treatment of OIDAR transactions in GST returns.

Our OIDAR GST Compliance Services

OIDAR Classification Advisory

Advisory on whether a specific digital service qualifies as OIDAR under the GST Act — cloud, SaaS, streaming, e-learning, online advertising, and database access.

Foreign Provider Simplified Registration

GST registration for foreign OIDAR service providers supplying to unregistered Indian consumers — simplified portal process with Indian tax representative appointment.

Indian Tax Representative Appointment

Appointment and compliance services for an Indian Tax Representative (ITR) for foreign OIDAR providers — mandatory for entities without an Indian establishment.

Reverse Charge Mechanism (RCM) Advisory

Advisory for Indian registered businesses on RCM liability on OIDAR services received from foreign providers — computation, payment, and ITC entitlement.

RCM Payment & GSTR-3B Compliance

Assistance with self-assessment and payment of IGST under RCM on foreign OIDAR invoices, and correct disclosure in GSTR-3B (Table 3.1(d) and Table 4).

GSTR-5A Return Filing

Filing of Form GSTR-5A — the monthly return for foreign OIDAR providers registered in India — reporting B2C OIDAR supplies to Indian consumers.

OIDAR Transaction Reconciliation

Reconciliation of all OIDAR invoices received from foreign providers against RCM payments made and ITC claimed — to clear any mismatch in GSTR-3B filings.

OIDAR Compliance Advisory

Ongoing advisory on GST treatment of new digital service subscriptions, OIDAR vs. non-OIDAR classification, and place of supply determination for cross-border digital services.

Our Process

Service Classification

We review the digital service in question — its delivery mechanism, degree of automation, and supplier profile — to confirm OIDAR classification and applicable GST treatment.

Supplier & Recipient Analysis

We identify whether the transaction is B2C (foreign supplier must register) or B2B (Indian recipient pays under RCM) to determine who bears the GST obligation.

Registration or RCM Setup

For foreign providers: simplified GST registration and GSTR-5A return setup. For Indian businesses: RCM payment process, DRC-03 or GSTR-3B payment, and ITC claim setup.

Return Filing & Reconciliation

GSTR-5A for foreign providers or GSTR-3B for Indian RCM payers is filed with correct OIDAR transaction disclosure. Invoices are reconciled against payments.

Ongoing Compliance Advisory

We advise on new OIDAR subscriptions, classification changes, and any amendments to the GST Act affecting digital services as they arise.

Why It Matters

✓OIDAR correctly classified — no wrong GST treatment

✓Foreign providers registered before first B2C supply to India

✓Indian businesses paying RCM correctly — no GST exposure

✓ITC claimed on RCM payments where eligible

✓GSTR-5A filed monthly for foreign OIDAR providers

✓GSTR-3B Table 3.1(d) and Table 4 correctly populated

✓All foreign digital subscriptions audited for RCM liability

✓Indian tax representative appointed where required

Frequently Asked Questions

OIDAR services include: advertising on the internet; provision of cloud services; e-books, movies, music, and online content (where supply is automated); online gaming; distance teaching via automated online delivery; digital data storage; and online databases. The key test is that the service is delivered over the internet and is essentially automated, with minimal human intervention.

Yes. When an Indian registered business subscribes to AWS, Google Cloud, Azure, or similar foreign cloud services, it receives OIDAR services from a foreign provider. The Indian business must pay IGST under the Reverse Charge Mechanism on the subscription amount and report it in GSTR-3B under Table 3.1(d). The same IGST paid is eligible as ITC in Table 4.

Yes. A foreign company providing OIDAR services to unregistered Indian consumers (B2C) is required to register for GST under the simplified registration process and file monthly GSTR-5A returns. If the supply is to a registered Indian business (B2B), the foreign provider need not register — the Indian business pays under RCM.

Yes, provided the OIDAR service is used in the course or furtherance of business and the Indian recipient is registered for GST. The IGST paid under RCM is eligible as ITC in the same tax period in which it is paid, subject to the conditions of Section 16 of the CGST Act.

Form GSTR-5A is the monthly GST return for foreign companies registered as OIDAR providers in India. It must be filed by the 20th of the month following the tax period. It reports the value of B2C OIDAR supplies made to unregistered Indian consumers and the corresponding IGST paid.

Most OIDAR services — cloud computing, software as a service, online advertising, digital content, and database access — are taxable at 18% IGST. E-learning services that are otherwise exempt when provided by an educational institution may be taxable at 18% when delivered by a foreign OIDAR provider to Indian consumers.

Receiving or providing OIDAR services? Get your GST right.

We classify your digital service transactions, set up RCM payments, register foreign providers, and file GSTR-5A and GSTR-3B correctly — no GST exposure on digital services.