Top 11 OIDAR
Questions Answered

Yes — if your company is incorporated outside India and provides digital services (SaaS, streaming, e-learning, gaming, APIs, data subscriptions etc.) to customers located in India, OIDAR GST applies to you.

The most important point: there is no minimum revenue threshold. Even a single paying Indian customer triggers the registration obligation under Section 14 of the IGST Act, 2017.

Not every foreign digital business is covered. You may be genuinely exempt or outside OIDAR entirely if any of the following apply:

• You have no customers in India under the place-of-supply test (address, IP, billing, card, bank, SIM, or landline indicators)
• Your company is incorporated in India, not abroad — OIDAR targets foreign suppliers only
• Your service is physical or offline, not delivered over the internet
• All your Indian customers are GST-registered businesses with verified GSTINs (reverse charge applies instead — see next question)
• Your service is online money gaming — though note this is now banned outright in India (see our dedicated guide), not simply a different compliance path

If all your Indian customers are GST-registered businesses, the tax liability shifts to them under the Reverse Charge Mechanism (RCM). In a purely B2B scenario, OIDAR registration may not be mandatory for you.

However, in practice, most foreign digital companies have a mix of B2B and B2C customers — including individuals, freelancers, startups, and unregistered entities. Even one non-registered Indian customer creates the registration obligation.

We recommend a detailed analysis of your Indian customer base before assuming full B2B status.

This is the most common reason companies delay — and it consistently backfires. Here is why:

• The OIDAR law has no de minimis threshold — small revenue does not create an exemption
• CBIC is now issuing retrospective demands going back to 2017 — "small" revenue today accumulates to significant liability over 7 years
• The cost of registration and monthly compliance is modest compared to the penalty risk
• Voluntary registration before enforcement is significantly better for your negotiating position

This is the assumption that makes OIDAR enforcement so effective now. CBIC uses several data channels:

• Payment processors — Stripe, PayPal, and Razorpay report India-origin transactions to authorities
• App stores — Google Play Store and Apple App Store provide India revenue data
• Indian B2B customers — GST-registered businesses filing RCM returns disclose your company as the foreign supplier
• Customs & import data — used for identifying digital service suppliers

The assumption of invisibility is no longer valid. Companies are being identified and targeted based on data that already exists with Indian authorities. See our Place of Supply guide for the specific data points that establish a customer's location.

GSTR-5A is the GST return specifically designed for foreign OIDAR service providers. It must be filed every month — due by the 20th of the following month.

• It reports your total B2C India supplies for the month
• The 18% IGST must be paid before or at the time of filing
• A nil return must be filed even in months with zero India transactions
• Late filing attracts ₹200/day penalty and 18% interest on unpaid tax

Act immediately. An SCN carries a mandatory response deadline — typically 30 days from receipt. Missing this deadline results in an ex-parte order, meaning the authority passes an order against you without hearing your side.

• Do not ignore the notice or assume it will go away
• Engage a specialist with OIDAR litigation experience within 24 hours
• Gather all India transaction records, payment data, and customer information
• A well-drafted response can significantly reduce or eliminate the demand

Yes. OIDAR provisions have been in force since July 2017. The standard GST limitation period for raising demands is generally 3 years from the due date of the annual return — but in cases of fraud, suppression, or wilful misstatement, this extends to 5 years. In some interpretations and enforcement actions, demands going back to 2017 have been issued.

The key point is that liability accrues from the date your obligation arose — not from when you became aware of it. For a company that has been serving Indian customers since 2018 without registering, the total tax exposure could be substantial.

This depends on the structure. If you supply to an Indian GST-registered reseller who then supplies to end-customers, your supply to the reseller is B2B — the reseller handles their own GST obligations.

However, if you are the one supplying directly to Indian end-customers (even through a billing intermediary), OIDAR may still apply to you. The substance of the supply arrangement matters more than the formal billing structure.

This area has nuance and requires analysis of your specific contractual and supply chain structure — see our Marketplaces & intermediary guide for the specific test used to determine who's actually liable.

Yes. India's OIDAR registration is completely separate from your UK VAT, EU VAT MOSS, or Australian GST registration. Each jurisdiction has its own digital services tax regime.

India's OIDAR framework was modelled on the EU's VAT MOSS system but operates independently. Your existing registrations in other jurisdictions do not satisfy your India obligations in any way.

OIDAR registration typically takes 7–15 working days from the date of a complete application. The key documents required are:

• Certificate of incorporation of the foreign entity
• Proof of principal place of business outside India
• Authorisation letter for the Indian representative (if appointing one)
• PAN card of the entity (if obtained)
• Bank account details
• Details of the authorised signatory

OIDARIndia™ handles the entire registration process — we guide you on document requirements, prepare the application, and track it to GSTIN issuance.