Taxability of OIDAR Services under GST

  • Blog|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 5 January, 2021

1. Where supplier of OIDAR service and receiver are in India:

The place of supply as per section 12(2) shall be location of the recipient.

2. Where either supplier or receiver is outside India:

The place of supply as per section 13(12) shall be location of the recipient. The location of recipient of service is defined in section 2(14) of the IGST Act.
Explanation: For the purposes of this sub-section, person receiving such services shall be deemed to be located in the taxable territory, if any two of the following non-contradictory conditions are satisfied, namely:
  • The location of address presented by the recipient of services through internet is in the taxable territory;
  • The credit card, debit card, store value card, charge card, smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory;
  •  The billing address of the recipient of services is in the taxable territory;
  • The internet protocol address of the device used by the recipient of services is in the taxable territory;
  • The bank of the recipient of services in which the account used for payment is maintained is in the taxable territory;
  • The country code of the subscriber identity module card used by the recipient of services is of taxable territory;
  • The location of the fixed land line through which the service is received by the recipient is in the taxable territory.
However, as per section 14 of the IGST Act, where online information and database access or retrieval services are provided by any person located in a non-taxable territory and are received by a non-taxable online recipient in taxable territory, then the supplier of such service shall be liable to discharge integrated tax. The non-taxable online recipient is defined in section 2(16) of the IGST Act. The supplier of such service shall take a single registration under a single registration scheme notified by the Government.
As per section 2(16), “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 the taxable territory.
Related Articles:

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Comments are closed.

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied