Selling SaaS, streaming, online advertising, e-learning, cloud or other digital services to customers in India? We handle OIDAR GST registration, monthly GSTR-5A returns, B2B and B2C classification, and notices, plus the related income tax and treaty review, so you can keep serving Indian customers without disruption.
Online Information and Database Access or Retrieval (OIDAR) services are services delivered over the internet or an electronic network, where delivery depends on information technology.
The rapid growth of India's digital economy has made the taxation of cross-border digital services a priority for the government. Services such as software downloads, SaaS, online advertising, streaming and cloud storage are often supplied by non-resident companies to Indian customers. India brings them into the GST net through the OIDAR provisions of the IGST Act, 2017.
The definition was widened from 1 October 2023. The earlier requirement that the service be “essentially automated and involving minimal human intervention” was removed. Now, almost any service supplied through information technology over the internet or an electronic network, and dependent on that technology, can qualify as OIDAR. Services that were previously treated as outside OIDAR because of human involvement should be reassessed.
The GST treatment depends on the location of the recipient, and on whether the Indian customer is registered for GST.
| Supply | Who pays GST | What the overseas supplier must do |
|---|---|---|
| To unregistered customers in India (B2C) | The overseas supplier, as IGST | Register under the simplified scheme (Form GST REG-10), charge and pay IGST, and file GSTR-5A every month |
| To GST-registered businesses in India (B2B) | The Indian recipient, under reverse charge | Usually no registration for these supplies, but keep evidence of the customer's GST registration |
| To government or other notified recipients not carrying on business | The overseas supplier | Treated in the same way as B2C supplies |
Getting the B2B/B2C split right is critical, because many digital businesses serve both. We help design customer onboarding that captures GSTINs and location evidence, so the correct treatment is applied to every invoice. Indian businesses receiving such services should review their reverse charge compliance through our GST services.
India's Equalisation Levy has now been abolished. The 2% levy on e-commerce operators ended from 1 August 2024, and the 6% levy on online advertising services ended from 1 April 2025. Payments made after these dates no longer attract Equalisation Levy, though past periods remain subject to the old rules and any open assessments.
GST under OIDAR remains fully in force. On the income tax side, receipts from Indian customers may still be taxable in India, depending on whether they are royalty or fees for technical services, on the Significant Economic Presence rules, and on whether the supplier has a permanent establishment. The applicable tax treaty and Form 10F/TRC documentation determine the rate of withholding.
We review OIDAR GST and income tax positions together, so that the way your services are described for GST is consistent with your income tax and treaty position. See our PE risk advisory and international tax services.
We assess whether your services are OIDAR under the post-2023 definition, and map your B2B and B2C revenue from India.
We prepare and file your simplified registration, coordinate documents, and support the appointment of an Indian representative.
We file returns every month by the 20th, reconcile them with your billing data, and support IGST payments.
We help build processes to capture GSTINs and location evidence, and set the right tax treatment at checkout.
We respond to GST notices, quantify past non-compliance, and plan regularisation.
We review royalty/FTS and SEP exposure, withholding rates, Form 10F and PE risk, and close out legacy Equalisation Levy matters.
We understand your services, pricing, customer base in India and billing systems.
We determine OIDAR status, the B2B/B2C split, and any past exposure.
We file Form REG-10 and set up a representative and payment arrangements.
We configure customer data capture and tax treatment in your billing flow.
We file GSTR-5A, reconcile, and track deadlines.
We handle law changes, notices, annual reviews and income tax alignment.
Tell us what you sell and how. We will confirm your OIDAR and income tax obligations and the quickest path to compliance, at no cost and with no obligation.
Book a Free OIDAR ConsultationShare your services and markets. We usually respond within one business day.
