- On supply of online information & database access / retrieval services (OIDAR) by any person located in a non-taxable territory & received by a taxable recipient in India, the recipient of services in India will be liable for paying integrated tax (IGST) on Reverse Charge basis.
- On supply of OIDAR services by any person located in a non-taxable territory & received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying IGST on such supply of services.
- The supplier of OIDAR services referred above shall, for payment of integrated tax, take a single registration under the simplified registration scheme. Any person located in the taxable terittory representing such supplier for any purpose in the taxable territory shall get registered & pay IGST on behalf of the supplier. If such supplier does not have a physical presence / does not have a representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for the purpose of paying IGST & such person shall be liable for payment of such tax.
- The inclusive part of the definition of OIDAR services is only indictive & not exhaustive. To determine, if a particular service is an OIDAR service, the following test can be applied:
| Service | Whether provision of service is done by information technology over internet | Whether it is automated & impossible to ensure in the absence of information technology | OIDAR services |
|---|---|---|---|
| PDF document manually e-mailed by provider | Yes | No | No |
| PDF document aut0matically e-mailed by provider’s system | Yes | Yes | Yes |
| Stock photographs available for automatic download | Yes | Yes | Yes |
| Online course consisting of pre-recorded videos & downloadable PDFs | Yes | Yes | Yes |
| Online course consisting of pre-recorded videos & downloadable PDFs plus support from a live tutor | Yes | No | No |
| Individually commissioned content sent in digital form | Yes | No | No |