{"id":9194,"date":"2020-05-22T17:55:30","date_gmt":"2020-05-22T12:25:30","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=9194"},"modified":"2023-03-17T18:33:15","modified_gmt":"2023-03-17T13:03:15","slug":"oidar-services-under-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/oidar-services-under-gst\/","title":{"rendered":"Know all about OIDAR Services under GST"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The lawmakers of goods and\nservices tax have subsumed OIDAR services under GST law. The expanded form of\nOIDAR is <strong>Online Information and Database\nAccess or Retrieval<\/strong>. OIDAR services are those services provided via the\ninternet as a medium.<\/p>\n\n\n\n<p><strong>The two eligibility criteria for OIDAR to get qualified as a service are-<\/strong><\/p>\n\n\n\n<ul><li><em>Performing of delivery should take place\nthrough the internet<\/em><\/li><li><em>It is an automated supply that requires less\ninvolvement of human and information technology is a must-have thing for it<\/em><\/li><\/ul>\n\n\n\n<p>Over the last decade, <strong>SAAS<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Software_as_a_service\"><strong>[1]<\/strong><\/a><\/sup> based products and cloud technologies have observed accelerated extension in India. This phenomenal growth is the reason behind the introduction of more and more services by Indian as well as Non-Resident Taxable Persons.<\/p>\n\n\n\n<p>Since digitalization has\ncaptivated the attention of the whole nation, the way of conducting the\nbusiness in India is advancing. These businesses have a better illumination of\nthe B2C segment with access to ultra-high-speed Internet. Cross border\ntransactions have brought many complications in the transactions taking place\ninto these rapidly-thriving industries. Taking these complexities into\nconsideration, the government has propagated various provisions with regard to\ntaxation laws and GST law for the overseas transactions taking place, thereby\nbringing the reduction in the complications that foreign suppliers have faced\nin the past.<\/p>\n\n\n\n<p>Despite being catering to the problems encountered by foreign taxpayers, these registration schemes have increased the compliance load of foreign taxpayers. Even though the department has released the clarifications, vaguenesses still exist until now concerning the OIDAR interpretation. By case to case analysis, accurate classification of online information and database access or retrieval service becomes a possibility.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/oidar-services-under-gst\/#Examples_of_OIDAR_Services\" >Examples of OIDAR Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/oidar-services-under-gst\/#Examples_of_Non-OIDAR_Services\" >Examples of Non-OIDAR Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/oidar-services-under-gst\/#OIDAR_services_under_GST_Applicability\" >OIDAR services under GST Applicability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/oidar-services-under-gst\/#Is_there_any_Requirement_for_an_OIDAR_Service_Provider_located_outside_India_to_Register_under_Goods_and_Service_Tax\" >Is there any Requirement for an OIDAR Service Provider\nlocated outside India to Register under Goods and Service Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/oidar-services-under-gst\/#Winding_Up\" >Winding Up<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Examples_of_OIDAR_Services\"><\/span>Examples of OIDAR Services<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Online gaming<\/li><li>Rendering cloud-based services like Google Drive<\/li><li>Online advertising service providers<\/li><li>Digital data storage services<\/li><li>Provision of software, music, movie, e-books,\nand various intangibles through the internet<\/li><li>Supplies of digital content like music, daily\nsoaps, movies, etc. through an online platform<\/li><li>Remote system administration<\/li><li>On-demand disk space online supply<\/li><li>Anti-virus products<\/li><li>Journals and online newspapers subscriptions<\/li><li>Downloading or accessing of ringtones, jingles\nor other kinds of sounds<\/li><li>Online weather reports<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Examples_of_Non-OIDAR_Services\"><\/span>Examples of Non-OIDAR Services<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Services related to advertising on TVs, on posters and also in the newspapers<\/li><li>Educational courses, where the teacher uses the internet as a medium to deliver the content<\/li><li>Supplies of tangible goods or services via electronic means<\/li><li>Hotel accommodation booking services and tickets<\/li><li>Entertainment events booking services and tickets<\/li><li>Physical repair services of equipment related to the computer through an offline mode<\/li><li>Supplies of newspapers, journals or newsletters<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gst-taxpayers-can-file-their-gstr-3b-returns\/\">GST Taxpayers can file their GSTR-3B Returns in an easy way<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"OIDAR_services_under_GST_Applicability\"><\/span>OIDAR services under GST Applicability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hinged on the supplier and recipient location, OIDAR services under GST might perhaps be liable or not liable as mentioned below through five cases-<\/p>\n\n\n\n<ul><li>In the first case, if the suppliers, as well as\nthe recipient both, are in India, then goods and service tax will be\napplicable. Moreover, payment of GST will be on the basis of forward charges.<\/li><li>In the second case, if the supplier is living\noutside the geographical boundaries of India, and the recipient residing in\nIndia is registered for goods and service tax, then goods and service tax will\nbe applicable. Furthermore, payment of goods and service tax will be on Reverse\nCharge Basis.<\/li><li>In the third case, the recipient is living in\nIndia, but he has not got registered for goods and service tax, and the\nsupplier is outside the boundaries of India, then GST will be applicable, and\npayment for goods and service tax will be on forward charge basis.<\/li><li>When an unregistered, non-taxable person in\nIndia imports the OIDAR services, the supplier located outside India will make\nthe payment for such tax (goods and service tax) on forward charge basis.<\/li><li>In the fourth case, if the suppliers, as well as\nrecipients both, are not available in India, then no GST will be applicable as\nit is out of the GST range.<\/li><li>If the supplier is residing in India, but the\nrecipient is unavailable in India, then in this fifth case, no GST will be\napplicable to the export service.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_there_any_Requirement_for_an_OIDAR_Service_Provider_located_outside_India_to_Register_under_Goods_and_Service_Tax\"><\/span>Is there any Requirement for an OIDAR Service Provider\nlocated outside India to Register under Goods and Service Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the simplified registration scheme of goods and service tax, the supplier has to acquire a single <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> if an OIDAR service provider is residing outside the boundaries of India and is rendering OIDAR services to an Indian person who is non-taxable as well as unregistered. However, there is no requirement for suppliers outside India to pay or register GST if a registered person or a company in India is taking the services.<\/p>\n\n\n\n<p>A registered person living in\nIndia is receiving the OIDAR services from a service provider outside the\nIndian boundaries should pay IGST on reverse charge basis directly to the\ngovernment, no external parties involved.<\/p>\n\n\n\n<p>In the case of OIDAR services under GST, the place of supply would be the location of the recipient of services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Winding_Up\"><\/span>Winding Up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Through this article, you might\nhave learned with regard to OIDAR services under GST that-<\/p>\n\n\n\n<ul><li>No applicability of GST on the export of OIDAR\nservices outside India.<\/li><li>If a company in India is rendering OIDAR services\nunder GST to another company in India, payment of GST will take place on a\nforward charge basis.<\/li><li>If a company out of India is providing OIDAR service\nto a GST-registered company in India, the recipient would have to pay the GST\non a reverse charge basis.<\/li><\/ul>\n\n\n\n<p>We, at <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>, would back you in filing easy GST returns. Furthermore, we are here to make things easier for businesses within and outside of India.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/elucidation-on-gst-refund-issues\/\">Elucidation on GST Refund Issues \u2013 Recent Updates\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The lawmakers of goods and services tax have subsumed OIDAR services under GST law. The expanded form of OIDAR is Online Information and Database Access or Retrieval. OIDAR services are those services provided via the internet as a medium. The two eligibility criteria for OIDAR to get qualified as a service are- Performing of delivery [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":9196,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[591],"acf":{"service_id":"132"},"authorName":"Margesh Rai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/Margesh.png","authorDescription":"With 10+ years of creative writing experience and 500+ blogs and thought leadership articles to his credit, Margesh Rai has left a significant impact in the field of content marketing. A published author and poet, Margesh Rai has experience writing for 20+ segments, such as Legal, Fintech, SAAS, Dairy, Real Estate, Hospitality, Recruitment, Sustainability, etc.","postViews":6726,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9194"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=9194"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9194\/revisions"}],"predecessor-version":[{"id":53547,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9194\/revisions\/53547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/9196"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=9194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=9194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=9194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}