OIDAR GST Registration Process

Online Information and Database Access or Retrieval (OIDAR)  services under GST refer to services delivered over the internet with minimal human intervention. Such services are subject to specific rules and regulations under the GST regime in India.

In this article, we explore more about the OIDAR registration under GST.

What is OIDAR service under GST and examples?

OIDAR services refer to services delivered through the internet, where the recipient receives the service online without any physical interaction with the service provider. The inclusion of OIDAR services under GST aims to provide a level playing field for domestic service providers in terms of cost.

Examples of OIDAR services include:

• Downloading or accessing software and applications.
• Providing cloud services.
• Providing online gaming services.
• Supplying digital content like e-books, music, videos, and images.
• Providing online education, training, and certification courses.
• Providing web hosting, and remotely managing maintenance of programs and equipments.
• Supplying advertising space on the internet.
• Providing electronic data interchange (EDI) services.
• Providing search-engine services.
• Providing digital data storage services.

Under GST, the government aims to tax all OIDAR services provided from within or outside India for business or non-business purposes. This includes services provided by the government, charitable entities, or any other entity. 

If an online service provider does not have an office in India, they must appoint an agent to handle tax payments. Additionally, if a non-taxable online recipient receives online services from a non-taxable territory, the supplier in that territory must pay the tax according to Section 14 of the Integrated Goods and Services Tax (IGST) Act.

GST rate on OIDAR services and OIDAR services HSN code / OIDAR services GST rate 

The IGST rate for the sale of digital services in India is 18%, which applies to both OIDAR service providers located in India and outside India. 

However, there is an exception for online sale of e-books. This service is classified under HSN code 9984 (Telecommunications, broadcasting, and information supply services) of the GST Tariff and is subject to a reduced rate of 5%. 

Who must register under GST for OIDAR services?

With regards to OIDAR registration under GST, it is mandatory for all entities, irrespective of their turnover providing OIDAR services in India to register under GST. 

Therefore, OIDAR service providers, even those outside India, providing services to residents in India are required to obtain GST registration.

If an OIDAR service provider is located in a non-taxable territory and the recipient is a non-taxable online recipient (NTOR), the intermediary that supplies services on behalf of the provider must register and pay GST. 

Similarly, if the OIDAR service provider is located in a non-taxable territory and the recipient is a taxable person in India, the provider must select a representative in India who will register and pay taxes on their behalf.

OIDAR GST registration process 

Here is a step-by-step guide on the OIDAR GST registration process:

Step 1: Go to the GST portal and click on ‘Services’ and then ‘Registration’ in the top menu.

Step 2: Select ‘New Registration’ and choose ‘Taxpayer’ as the type of taxpayer.

Step 3: Fill in your basic details like legal name, PAN, email address, and mobile number. Enter the captcha code and click on ‘Proceed.’

Step 4: You will receive an OTP on your mobile and email. Enter the OTP to verify your details.

Step 5: Once verified, you will receive an Application Reference Number (ARN) on your email and mobile. Click on the ‘ARN’ link to continue with the registration process.

After successful validation of the ARN application, you will be redirected to an OTP page. Enter both the email and mobile OTPs. 

A 15-digit Temporary Reference Number (TRN) generated by the system is displayed.

Step 6: Select the ‘PROCEED option’. Alternatively, to login using the TRN, go to Services > Registration > New Registration and select the Temporary Reference Number (TRN) radio button. Enter the generated number in the TRN field. Enter the captcha text and proceed.

The ‘Verify OTP’ page appears. Enter the OTP sent to your mobile phone and email address.

The ‘My Saved Application’ page appears. Click the ‘Edit’ icon in the Action column.

Step 7: Fill in the details in the GST registration form, including your business details, bank account details, and details of the authorised signatory. Follow our article on GST registration process and the detailed steps for the same.

Business Details:

Authorised Signatory Details:

Bank Account Details:

Verification Page:

Upload the required documents such as PAN, Aadhaar, and address proof.

Once the form and documents are submitted, you will receive an acknowledgment of successful submission. Your application will be processed by the GST department, and you will receive an email and SMS notification when your registration is approved.

Note: For OIDAR services, it is mandatory to provide additional information like Place of Supply (PoS), Type of Service, etc. during the registration process. Also, ensure that you have all the necessary documents and information before starting the registration process.

FAQs on OIDAR GST registration 

What is OIDAR full form in GST?

In GST, OIDAR stands for 'Online Information and Database Access or Retrieval' and it refers to electronic services like online advertising, cloud computing, digital content, and software as a service (SaaS).

Is GST registration mandatory for OIDAR? 

Yes, GST registration is mandatory for businesses providing OIDAR services in India, regardless of their place of establishment. 

What are OIDAR services under GST? 

OIDAR services under GST refer to electronically supplied services delivered over the internet or an electronic network and are either automated or involve minimal human intervention. 

Who is the Authorised signatory for OIDAR? 

For OIDAR services under GST, the authorised signatory can be any person who is a resident of India and has a valid PAN card.  They should also be authorised by the OIDAR service provider to act on their behalf in all GST-related matters, including registration, filing returns, and making payments.

Can OIDAR claim ITC? 

Only registered taxpayers in taxable territory are eligible to claim credit can avail input tax credit. However, non-resident OIDAR service providers are not eligible to claim input tax credit as per the existing provisions.

How to check the OIDAR GST number?

To obtain the OIDAR GST number or GSTIN of an OIDAR service provider in India, go to the GST portal website, select the 'Search Taxpayer' tab, enter the GSTIN or trade name or legal name, and click the 'Search' button.

OIDAR services examples

Examples of OIDAR services include online advertising, cloud computing services, digital content distribution, e-books, software as a service (SaaS), and online gaming.