OIDAR refers to services that are delivered over the internet without any physical interface between the supplier and the recipient. In simpler terms, these are digital services provided online—like e-books, cloud storage, online advertisements, music or video streaming, and software downloads—where a business or individual accesses data or content through a digital platform.
Under Indian GST law, OIDAR services are treated as a special category of services, particularly when supplied by a foreign service provider to Indian consumers (including individuals, small businesses, or startups). In such cases, the responsibility to pay GST falls on the foreign supplier, who must register under GST in India and comply with tax payment and filing requirements.
For Indian entrepreneurs and small business owners, understanding OIDAR is crucial, especially if they are consuming digital tools or services from global platforms. It also applies if an Indian business offers digital services to users outside India—the classification of the service under OIDAR may affect whether the transaction qualifies as an export or a domestic supply, impacting GST liability.
Being aware of OIDAR is important during GST registration, regular compliance, and invoicing. If you’re not sure whether a service falls under OIDAR or how it affects your business’s tax obligations, it’s best to seek expert guidance.
To simplify GST filing and compliance related to OIDAR or other digital services, visit FinTax24's GST Solutions.