Online Information and Database Access or Retrieval services (OIDAR) (Happy gst series 11) by CA Rajender Arora
Definition OIDAR as per Section 2(17) of IGST Act, 2017
"online information and database access or retrieval services" means services whose delivery is
mediated by information technology over the internet or an electronic network and the nature of
which renders their supply essentially automated and involving minimal human intervention and
impossible to ensure in the absence of information technology and includes electronic services
such as,—
(i) advertising on the internet;
(ii) providing cloud services;
(iii) provision of e-books, movie, music, software and other intangibles through
telecommunication networks or internet;
(iv) providing data or information, retrievable or otherwise, to any person in electronic form
through a computer network;
(v) online supplies of digital content (movies, television shows, music and the like);
(vi) digital data storage; and
(vii) online gaming;
2. Definition of "non-taxable online recipient" as per Section 2(16) of IGST Act, 2017
"non-taxable online recipient" means any Government, local authority, governmental authority,
an individual or any other person not registered and receiving online information and database
access or retrieval services in relation to any purpose other than commerce, industry or any
other business or profession, located in taxable territory.
3. What shall be the place of supply in case of OIDAR Services?
As per Section 13(12) of IGST Act, 2017 the place of supply of online information and database
access or retrieval services shall be the location of the recipient of services.
4. Who is responsible for payment of Tax?
a) RCM – International B2B services are taxable under this rule. In cases where the
supplier of such service is located outside India and the recipient is a Registered business
entity located in India.
b) Forward charge- International B2C OIDAR services are taxable under this rule. If the
supplier is located outside India and the recipient in India is an individual consumer/ non
taxable online recipient, then the supplier of services located in a non-taxable territory
shall be the person liable for paying integrated tax on such supply of services.
c) Intermediaries-If an intermediary located outside India, arranges or facilitates supply of
such service to a non-taxable online recipient in India, then the intermediary would be
treated as the supplier of the said service and will be liable to pay tax.
5. When the need arises for the compulsory registration in OIDAR?
As per Sub Clause (xi) of Section 24 of CGST Act, 2017, every person supplying online
information and data base access or retrieval services from a place outside India to a person in
India, other than a registered person require registration.
6. Person required to register under Section 24 of CGST Act, 2017, supplying online
information and data base access or retrieval services from a place outside India to a
person in India are required to file GSTR9/9C?
For GST Related Queries-Contact CA RajenderArora +91-9891112120, carajenderarora@gmail.com
As per Notification No. 30/2019-Central Tax, dated 28-6-2019, the said persons shall not be
required to furnish an annual return in FORM GSTR-9 and reconciliation statement in FORM
GSTR-9C.
7. How registration is granted to person supplying online information and database access or
retrieval services from a place outside India to a non-taxable online recipient?
As per Rule 14 of CGST Rules, 2017, shall electronically submit an application for registration,
duly signed or verified through electronic verification code, in FORM GST REG-10, at the
common portal, either directly or through a Facilitation Centre notified by the Commissioner and
shall be granted registration, in FORM GST REG-06.
8. How to submit returns for OIDAR?
As per Rule 64 of CGST Rules, 2017, Every registered person providing online information and
database access or retrieval services from a place outside India to a person in India other than
a registered person shall file return in FORM GSTR-5Aon or before the twentieth day of the
month succeeding the calendar month or part thereof.
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