OIDAR GST, what every foreign SaaS selling to India needs.

OIDAR = Online Information Database Access and Retrieval services. Defined under Section 2(17) of the IGST Act:

• Services whose delivery is mediated by information technology over the internet or electronic network.
• Essentially automated with minimal human intervention.
• Impossible to supply without information technology.

Examples of OIDAR services:

• SaaS subscriptions (Zoom, Dropbox, Figma, Notion, Slack).
• Online advertising (Google Ads, Meta Ads, LinkedIn Ads purchased by Indian B2C customer).
• Cloud storage + computing (AWS, GCP, Azure B2C).
• E-books, music, video streaming (Spotify, Netflix, YouTube Premium).
• Mobile app subscriptions (gaming, productivity).
• Online learning platforms (Coursera, Udemy B2C).
• Digital advertising services, website hosting, online data retrieval.

NOT OIDAR: online consultancy with real human CA / consultant on the other end (that's regular Section 2(118) service), remote training with live instructor, physical goods shipped internationally, B2B services where the Indian recipient is GST-registered (reverse charge applies — no OIDAR obligation on foreign supplier).

OIDAR GST registration is mandatory (no threshold) if ALL of these are true:

• You are a foreign supplier (incorporated / based outside India).
• Services qualify as OIDAR under Section 2(17).
• Recipient is a non-taxable online recipient — i.e., an Indian B2C customer (individual not registered for GST, or Indian entity not registered for GST, or Indian government body).

B2B exception: if your Indian customer is GST-registered (business), they are deemed to self-assess under reverse charge mechanism (Section 5(3) IGST). No GST obligation on foreign supplier for B2B. But practically, most SaaS companies have mix of B2B + B2C — and must register once any B2C paying customer exists.

Finance Act 2023 broadened OIDAR definition (removed 'essentially automated' requirement for some sub-categories) — even more foreign suppliers now in scope.

1. Appoint representative in India (recommended, not mandatory): a GST-registered Indian consultant / CA firm as 'authorised representative' for the OIDAR registration. BQP handles this role.
2. Register under OIDAR: online via GST portal (ggsp.gst.gov.in or regular GST portal, specific OIDAR category). Documents: company incorporation, passport of directors, bank account, business address proof.
3. GSTIN issued: specific format for OIDAR registrants (begins with '9900' or similar).
4. Charge 18% IGST on every invoice to Indian B2C customer. Shown on customer invoice; collected via payment gateway.
5. Monthly / quarterly return: Form GSTR-9A (OIDAR annual return) + monthly statement. Pay collected IGST to Indian government by 20th of next month.
6. IGST payment: via NEFT/RTGS to designated government account. In practice, Indian representative handles payment on behalf of foreign supplier.

• Not registering at all: assuming 'we don't have an Indian entity, so no GST applies'. Wrong — OIDAR applies even without Indian presence. Non-registration = tax demand under Section 74 (fraud / wilful suppression) up to 5 years back + 100% penalty.
• Not distinguishing B2B vs B2C: Indian B2B customer should provide their GSTIN for self-assessment (reverse charge). Foreign supplier should capture GSTIN at checkout. Without GSTIN capture, every sale defaults to B2C → 18% OIDAR GST obligation.
• Charging INR-denominated vs USD-denominated: GST is on supply value. If invoice is in USD, convert at RBI reference rate for the day. Document FX conversion rate.
• Credit note / refund processing errors: refunds reduce taxable supply but need proper credit-note documentation under GST invoice rules.
• Missed Form OIDAR-9 / GSTR-9A filing: annual return separate from monthly compliance. Late fee + penalty.
• No Indian representative: makes tax officer communication / notice response very difficult. Appointment of Indian authorised representative is standard best practice.

Last updated: 2026-10-13.