OIDAR GST Registration Process in India Explained

The rapid growth of the digital economy has transformed the way services are delivered across borders. From streaming platforms to cloud computing and online advertising, digital services are now consumed seamlessly in India from providers located anywhere in the world. To regulate taxation in this space, the Government of India introduced specific provisions under the Goods and Services Tax (GST) law for OIDAR services.

In this article, we will explain the OIDAR GST Registration Process in India, its applicability, eligibility criteria, documentation requirements, and step-by-step procedure for registration.

What is OIDAR Under GST?

OIDAR stands for Online Information and Database Access or Retrieval services. Under the Goods and Services Tax regime, OIDAR refers to services delivered over the internet or electronic networks with minimal human intervention.

As per the Central Goods and Services Tax Act, 2017, OIDAR services include:

Online advertising
Cloud services
E-books and digital content
Music, movies, and OTT subscriptions
Online gaming
Software downloads
Data storage services

These services are typically automated and rely heavily on information technology infrastructure.

Applicability of OIDAR GST Registration in India

The OIDAR GST Registration Process in India primarily applies to:

Foreign service providers offering digital services to customers in India.
Indian businesses providing OIDAR services.
Non-resident online service providers supplying services to unregistered individuals in India.

If a foreign OIDAR service provider supplies services to a non-taxable online recipient (usually an individual consumer) in India, GST registration is mandatory, irrespective of turnover thresholds.

Unlike regular GST registration, there is no minimum turnover exemption for foreign OIDAR service providers.

Who is a Non-Taxable Online Recipient?

A non-taxable online recipient is a person in India who:

Is not registered under GST.
Receives OIDAR services for purposes other than business.

For example, if an individual in India subscribes to a foreign streaming service, the service provider must comply with the OIDAR GST Registration Process in India and pay GST accordingly.

Legal Framework Governing OIDAR Services

The taxation of OIDAR services in India is governed by:

Central Goods and Services Tax Act, 2017
Integrated Goods and Services Tax Act, 2017

Under these laws:

The place of supply for OIDAR services is the location of the recipient.
GST is payable in India if the recipient is located in India.
Foreign OIDAR service providers must obtain GST registration under a simplified registration scheme.

Types of OIDAR GST Registration

There are generally two categories under the OIDAR GST Registration Process in India:

1. Registration by Foreign OIDAR Service Providers

Foreign companies providing digital services directly to Indian consumers must:

Register under a simplified GST scheme.
Appoint a representative in India (if required).
File returns and pay GST in foreign currency.

2. Registration by Indian OIDAR Service Providers

Indian businesses providing digital services must:

Register under normal GST provisions.
Charge applicable GST.
File regular GST returns.

Documents Required for OIDAR GST Registration in India

The documentation requirements under the OIDAR GST Registration Process in India include:

For Foreign Service Providers:

Proof of business registration in the home country
Tax identification number (if available)
Authorized signatory details
Letter of authorization
Bank account details
Proof of principal place of business

For Indian Entities:

PAN of the business
Aadhaar of authorized signatory
Address proof of business
Bank account details
Digital signature (if applicable)

Step-by-Step OIDAR GST Registration Process in India

Let’s break down the OIDAR GST Registration Process in India step by step.

Step 1: Access the GST Portal

The applicant must visit the official GST portal managed by the Goods and Services Tax Network.

Foreign OIDAR service providers must choose the option for non-resident OIDAR registration.

Step 2: Generate Temporary Reference Number (TRN)

The applicant:

Provides email ID and mobile number.
Verifies through OTP.
Receives a Temporary Reference Number.

Step 3: Fill Application Form (GST REG-10)

Foreign OIDAR service providers must file Form GST REG-10.

The form requires:

Legal name of the business
Country of incorporation
Details of authorized signatory
Bank details
Digital signature

Step 4: Upload Required Documents

Applicants must upload:

Registration certificate
Identity proof of authorized person
Authorization letter

Documents must be in prescribed format and size.

Step 5: Verification and ARN Generation

After submission:

An Application Reference Number (ARN) is generated.
Authorities verify the application.
If approved, GST registration certificate is issued.

GST Payment and Return Filing for OIDAR Providers

After completing the OIDAR GST Registration Process in India, service providers must comply with:

GST Payment

GST is generally charged at 18% on OIDAR services.
Tax must be paid monthly.

Filing of Returns

Foreign OIDAR service providers must file Form GSTR-5A:

Monthly return
Contains details of supplies made to Indian customers
Filed by the 20th of the succeeding month

Failure to comply may result in penalties and cancellation of registration.

Place of Supply Rules for OIDAR Services

The place of supply is crucial in determining tax liability.

Under the Integrated Goods and Services Tax Act, 2017:

The place of supply is the location of the recipient.
If at least two of the following are in India, the recipient is considered located in India:
- Billing address
- IP address
- Bank account location
- SIM card country code
- Fixed landline location

This ensures that digital services consumed in India are taxed in India.

Penalties for Non-Compliance

Non-compliance with the OIDAR GST Registration Process in India can lead to:

Monetary penalties
Interest on delayed tax payment
Blocking of access to digital platforms in India
Legal proceedings under GST law

Foreign companies must take compliance seriously to avoid regulatory complications.

Benefits of OIDAR GST Registration

Although compliance may seem complex, there are advantages:

Legal recognition in India
Avoidance of penalties
Smooth cross-border digital operations
Enhanced credibility with Indian customers

Registration ensures smooth business expansion into the growing Indian digital market.

Common Challenges in OIDAR GST Registration

Some common issues faced during the OIDAR GST Registration Process in India include:

Difficulty in understanding Indian GST laws
Documentation mismatches
Technical errors on the portal
Appointment of authorized representative

Professional assistance is often recommended for foreign entities unfamiliar with Indian tax laws.

Conclusion

The OIDAR GST Registration Process in India plays a vital role in regulating taxation of cross-border digital services. With the exponential growth of online streaming, cloud computing, digital advertising, and e-learning platforms, proper GST compliance has become essential for both Indian and foreign service providers.

Governed by the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017, the framework ensures that digital services consumed in India contribute to the country’s tax revenue. Foreign OIDAR providers supplying services to Indian individuals must mandatorily register under GST, file monthly returns, and pay applicable taxes.

Understanding the documentation requirements, registration steps, place of supply rules, and return filing obligations helps businesses avoid penalties and maintain smooth operations. As India continues to grow as one of the largest digital markets in the world, complying with the OIDAR GST regulations is not just a legal obligation but also a strategic move for sustainable growth.