OIDAR GST Registration Process in India: Eligibility, Documents, and Compliance

OIDAR GST Registration Process in India is important due to the increasing use of digital services, where many foreign and Indian businesses provide services to their customers without any physical presence.

As per the GST law, these services fall under the OIDAR category, which stands for Online Information and Database Access or Retrieval Services. If you are offering digital services in India, OIDAR registration is very important.

What is the Meaning of OIDAR

OIDAR refers to services that are:

• Provided through the internet or electronic network
• Fully automated
• Minimal human intervention
• Impossible to provide without technology

Who Needs OIDAR GST Registration?

OIDAR registration becomes mandatory when an individual or business entity is offering online digital services via the internet with less human intervention. The process is largely dependent on the supplier’s location and the type of customer they are serving in India.

Examples of OIDAR Services:

• Providing Online streaming services
• Providing Cloud storage services
• Providing Online gaming Services
• E-books and online publications
• Providing Online advertising services
• Software downloads
• Providing Online data services
• Providing Subscription-based digital services

Example: An entity operating in the USA offers subscriptions for movie and web series to Indian consumers via its online portal.

As the entity is offering automated digital services to Indian individuals who are not GST registered, the entity needs to register for OIDAR GST in India and charge GST to customers. Below is the list of persons who needs to obtain OIDAR registration:-

Foreign OIDAR Service Providers

Foreign OIDAR service providers offering digital services to unregistered customers (NTOR) in India are required to compulsorily register under GST.

There is no exemption based on turnover.

Indian OIDAR Service Providers

OIDAR service providers in India are required to register under GST if they cross the normal GST threshold limit.

Foreign Suppliers Supplying Through Intermediary

When OIDAR services are supplied through an intermediary, the intermediary is liable to register and pay GST if certain legal conditions are not met.

Documents Required for Foreign OIDAR Service Providers

For Foreign Service Providers

• Business Registration Certificate
• Tax Identification Number
• Address Proof of Business
• Passport Copy of Authorized Signatory
• Authorized Representative Details in India
• Letter of Authorization / Board Resolution(if any)
• Valid Email ID and Contact Details

For Indian Service Providers

• PAN of business
• Aadhaar
• Business address proof
• Bank account details
• Email and mobile number
• Digital signature (for companies/LLPs)

Step-by-Step OIDAR GST Registration Process in India

The Step-by-Step OIDAR GST Registration Process in India helps businesses understand how to apply for GST for their digital services. It covers eligibility, required documents, online registration, and ongoing GST compliance for OIDAR service providers.

Step 1: Visit GST Portal

Go to the official GST website and click on ‘Services’, then select ‘Registration’ from the top menu.

Step 2: Select New Registration

Click on ‘New Registration’ and choose ‘Taxpayer’ as the type of registration. If you are a foreign supplier, select the OIDAR service provider category.

Step 3: Fill Basic Details

Enter your basic details such as:

• Legal name of business
• PAN number (for Indian applicants)
• Email address
• Mobile number

After entering details, Complete OTP verification. After that a Temporary Reference Number (TRN) will be generated.

Step 4: Complete Application Using TRN

Login using the TRN and fill the entire registration Information:

• Business details
• Nature of services
• Business address
• Authorized signatory details
• Bank account details

 Step 5: Upload Required Documents

Upload the required documents like:

• Identity proof
• Address proof
• Bank proof
• Business registration documents
• Authorized signatory documents

Step 6: Verification and Submission

Verify your application using:

OTP verification OR Digital Signature Certificate (DSC) (Compulsory for companies/LLPs)

Step 7: ARN Generation

After successful submission, an Application Reference Number (ARN) will be generated for tracking Purposes.

Step 8: GST Department Processing

The GST department will check your application. They may approve the registration or ask for additional documents if needed.

Step 9: GSTIN Allotment

After approval, a GST Registration Certificate and GSTIN will be allotted, and the applicant can start complying with GST provisions for OIDAR services.

Post Registration Compliance

After obtaining OIDAR registration, the service provider is required to comply with the normal GST requirements. The service provider is required to charge GST (at a rate of 18% IGST) on the services provided to customers in India.

The service provider is required to determine the customers’ location through the prescribed criteria of billing address, IP address, or payment details.

The service provider is required to issue valid invoices, maintain records of transactions and customers, and

Submit the monthly GST return GSTR-5A by the 20th of the Succeeding month. The GST paid by customers is required to be deposited to the government account through the GST portal. Additionally, the service provider is required to update the registration details whenever there is a change in the business details.

Final Words

Completing the OIDAR GST Registration Process in India ensures that your digital services comply with Indian GST laws. By following the step-by-step process, submitting accurate details, and verifying through OTPs, businesses can easily obtain their GSTIN and stay fully compliant with ongoing GST obligations.

FAQ’s on OIDAR GST Registration

1. Who is required to obtain GST registration under OIDAR?

Foreign Service providers supplying OIDAR services to unregistered individuals or entities (B2C customers) Situated in India are required to obtain GST registration and pay GST in India.

2. Is GST registration mandatory for foreign OIDAR suppliers?

Yes. Foreign OIDAR service providers are mandatorily required to obtain GST registration in India if they supply services to unregistered persons. Unlike normal GST registration, there is no threshold exemption available in such cases.

3. What is the GST rate applicable to OIDAR services?

OIDAR services are generally liable to GST at a rate of 18%.

4. How is the place of supply determined for OIDAR services?

The place of supply for OIDAR services is determined based on the location of the recipient. If the recipient is located in India, GST will be applicable.

5. Can OIDAR suppliers claim Input Tax Credit (ITC)?

Generally, foreign OIDAR service providers registered under the simplified registration scheme are not eligible to claim Input Tax Credit.

6. Is it mandatory to appoint representative in India for registration?

Yes, it is mandatory for OIDAR service provider to appoint representative in India for the purpose of obtaining OIDAR registration.

7. How will OIDAR service provider will pay tax to the Government?

Representative appointed in India will pay tax to the government on behalf of OIDAR service provide from his/her bank account.