What is OIDAR
OIDAR services are online information and database access or retrieval services that are provided through the internet or an electronic network. Theses services are either automated or involve minimal human intervention. In simple words whatever content we access or consume online are OIDAR.
Examples of OIDAR?
- Advertising on internet,
- Providing cloud services like Google Drive, One drive
- Provision of e-books like amazon kindle,
- Online movies,
- Online music,
- software and other intangibles via internet
- Online gaming.
Are OIDAR services taxable under GST.
Yes, OIDAR services are taxable in India under GST.
Applicability of GST for OIDAR Services
Yes, OIDAR services are taxable in India under GST.
| Location of Supplier of service | Location of recipient of service | Taxability | Forward Charge/ Reverse Charge | Examples |
|---|---|---|---|---|
| India | India | Yes, Taxable | Forward Charge | Hotstar (registered in India) allows Indian users to register and watch movies. GST is payable by the Indian users |
| Outside India | Registered Recipient | Yes, Taxable | Reverse Charge (GST payable by the recipient) | An Indian Co.(registered) asks Hostinger (US) for web hosting services. GST is payable by the Indian Co. under RCM. |
| Non-Registered/ Non Taxable Recipient | Yes, Taxable | Forward Charge (GST payable by the service provider) | A student in India asks Hostinger (US) for web hosting services. Hostinger has to pay IGST. | |
| In India | Outside India | No (Export of service) | NA | ZeeTV allows foreigners to register and watch Serials. GST is not applicable as it is an export of service |
| Outside India | Outside India | No (Not covered under GST) | NA | Netflix (US) provides online movie streaming services to people in US. This is not covered in Indian GST. |
What is the place of supply for OIDAR?
For any person being recipient of “Supply of online information and database access or retrieval services” a place of supply shall be location of recipient of services.
