New to GST and not sure which registration type applies to you? Start with our GST registration guide.
What counts as OIDAR after the 2023 change
Section 2(17) of the IGST Act covers services whose delivery is mediated by information technology over the internet or an electronic network, and whose supply is impossible without information technology.
Until 30 September 2023 the definition also required the service to be "essentially automated and involving minimal human intervention". The Finance Act 2023 removed those words with effect from 1 October 2023. A digital service with a real human element in it, such as a tutored online course or a supported software product, can now be OIDAR.
Usually OIDAR
- Software and cloud subscriptions sold and delivered online
- Online courses, e-learning platforms and tutoring delivered over the internet
- Streaming of video, audio, games and other digital content
- E-books, digital magazines, stock images, fonts and templates
- Digital advertising space and advertising delivered to Indian users
- Cloud storage, hosting and online data warehousing
Usually not OIDAR
- A service merely arranged over the internet but performed physically, such as accommodation or transport booked online
- Goods ordered online and shipped
- Professional advice delivered by email where the internet is only the means of sending it
- Online money gaming, which is dealt with separately
Where a product sits on the line, get a written classification view before you start charging or not charging Indian tax. Retrospective correction of a subscription base is expensive.
Who pays: your customer's registration status decides
There is no "B2B exemption". What matters is whether the Indian customer holds a GSTIN.
| Your Indian customer | Who accounts for the tax | What you do |
|---|---|---|
| Not registered under GST, whether an individual, a business or a government body | You, as the OIDAR supplier | Charge IGST at 18%, collect it with the price, report and pay it in GSTR-5A |
| Registered under GST | The customer, under reverse charge | Do not charge IGST on that supply. Once you are registered, still report the supply in GSTR-5A under Rule 64 |
Since 1 October 2023, section 2(16) defines a non-taxable online recipient as any unregistered person receiving OIDAR services who is located in the taxable territory. The earlier condition, that the service be received for purposes other than commerce, industry, business or profession, is gone. A small unregistered Indian firm buying your software is therefore a non-taxable online recipient.
The control that matters: capture a GSTIN field at checkout and validate it before applying the zero-charge treatment. Keep the validation response with the transaction record. A supplier who cannot show why IGST was not charged on a subscription ends up paying it.
The REG-10 process, documents and jurisdiction
| Step | What happens | Form or document |
|---|---|---|
| 1. Scope check | A written view on whether each service is OIDAR under the post-2023 definition, and how your customer base splits by registration status | Classification note |
| 2. Appoint the person in India | Where you have a representative in India, that representative registers and pays. Where you have none, you appoint a person in India for that purpose | Power of attorney, apostilled or notarised |
| 3. File the application | The simplified registration under section 14 of the IGST Act, filed with the Principal Commissioner of Central Tax, Bengaluru West | GST REG-10 |
| 4. Registration granted | The certificate is issued and portal access set up | Registration certificate |
| 5. Monthly filing | Supplies to non-taxable online recipients, and supplies to registered persons under Rule 64 | GSTR-5A by the 20th |
Documents
- Passport of the individual supplier, or the tax identification number or unique identity number by which the entity is identified by its own government.
- Certificate of incorporation or business registration from the home country.
- PAN and Aadhaar of the appointed person in India, with the apostilled or notarised power of attorney.
- Bank account details.
- Product descriptions, price list and a sample invoice, so classification and invoicing are settled before filing.
We file within 5-7 working days of receiving complete documents.
OIDAR registration fee
Our professional fee is ₹1,499 for the OIDAR registration in Form GST REG-10. There is no government fee.
| Item | Amount |
|---|---|
| Regikart professional fee, OIDAR registration (Form GST REG-10) | ₹1,499 |
| Government fee for Form GST REG-10 | No government fee |
| Written classification view on whether a service is OIDAR | On quote |
| Monthly GSTR-5A filing | On quote |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 22 September 2026.
Interest and late fees are separate and are paid to the government. Tax paid late carries interest at 18% a year under section 50(1).
What is included: a scope check against the post-2023 definition, Form REG-10 with the supplier and appointed-person details, replies to any query, the registration certificate, and a written note on invoicing, the place-of-supply rule and the GSTR-5A calendar.
GSTR-5A, month by month
GSTR-5A is the only return an OIDAR registrant files, and it is due by the 20th of the month after the month it covers.
It reports the value of supplies made to non-taxable online recipients in India, the tax payable and the tax paid. Under Rule 64 it also carries details of supplies made to registered persons in India, which is how the department matches your records against the reverse charge those customers should have paid.
Three things to get right every month:
- Convert values to Indian rupees consistently and keep the rate you used.
- Reconcile the GSTIN split from your billing system before filing, not after.
- File even where a month is quiet. A gap in the series is the first thing an officer looks at.
Every GST, income-tax and ROC date is in our compliance calendar.
OIDAR, non-resident or an Indian entity?
Three routes serve overseas suppliers and they are not interchangeable.
| Route | When it fits | Form | Return |
|---|---|---|---|
| OIDAR simplified registration | Digital services supplied from outside India to unregistered Indian recipients | GST REG-10 | GSTR-5A, monthly by the 20th |
| Non-resident taxable person | Occasional physical supplies of goods or services in India, with no fixed place of business or residence here | GST REG-09 | GSTR-5 |
| An Indian presence | Continuing business in India, Indian costs you want credit for, or Indian contracting requirements | Normal registration | GSTR-1 and GSTR-3B |
If your Indian costs are significant or your Indian revenue is growing, model the Indian-entity route before committing to the simplified scheme. See non-resident taxable person registration, Indian subsidiary registration and branch, liaison and project office registration.
Why Regikart for OIDAR registration
Regikart is a CA and CS firm serving 250+ clients from offices in Kolkata (head office), Delhi and Bengaluru. Every OIDAR application starts with a written classification view from a Chartered Accountant.
- Classification in writing, first. After the 2023 change the boundary moved, and a wrong call on a subscription base is expensive to unwind.
- The GSTIN split designed before launch, so registered and unregistered Indian customers are separated at checkout rather than reconstructed later.
- Fixed fee of ₹1,499 for the registration, with no government fee to add.
- A team in India for the monthly work: GSTR-5A, the reconciliation and any GST notice that follows.
Not sure whether your service is OIDAR after the 2023 change? Send us a product description and a sample invoice, and a CA will give you a written view.