Tax & Compliance

What is OIDAR? Online Information & Database Access Services in India

OIDAR (Online Information and Database Access or Retrieval) refers to services delivered automatically over the internet with minimal human intervention — including SaaS, online streaming, digital advertising, online courses, e-books, and database access. Under Indian GST, OIDAR has special place-of-supply rules.

OIDAR is a GST classification covering digitally-delivered services. The defining characteristics: delivery via internet, automated (no significant human involvement), and impossible to deliver without information technology. Examples include cloud SaaS, video streaming (Netflix, YouTube Premium), digital ads (Google Ads, Meta Ads), online courses (Coursera, Udemy), online gaming, e-books, online radio, web hosting, and digital news subscriptions. For OIDAR services, the place-of-supply is the location of the recipient — relevant for cross-border supplies.

Place of supply: location of recipient (special rule for OIDAR)
GST rate: 18% for most OIDAR services
Cross-border treatment: foreign OIDAR provider to Indian recipient = reverse charge or special registration
B2B vs B2C: different rules for Indian B2B (RCM) vs B2C (foreign supplier registers)
Industries affected: SaaS, streaming, advertising, edtech, gaming, fintech

Industries served: SaaS, EdTech, Streaming Media, Digital Advertising, Online Gaming, Fintech, E-commerce, Cloud Services

Related terms: Reverse Charge Mechanism (RCM), Place of Supply, Export of Services, GST Input Tax Credit, IGST

Frequently Asked Questions

Are SaaS services classified as OIDAR in India?

Yes, most SaaS qualifies as OIDAR. Cloud-hosted software, automatically delivered over internet, with minimal human intervention — all OIDAR characteristics. SAC code 998313 (Software Development Services) or 998312 (IT Consulting) at 18% GST.

How does OIDAR affect Indian businesses buying foreign SaaS?

For Indian business buying foreign OIDAR services (AWS US, Microsoft direct, Slack), the foreign supplier doesn't charge Indian GST. Indian buyer self-assesses 18% IGST under reverse charge in GSTR-3B and claims same as ITC. Net effect zero, but the process must be done correctly.

When does a foreign company need to register for OIDAR GST in India?

Foreign OIDAR provider must register for Indian GST if they supply OIDAR services to Indian B2C customers (consumers). For B2B Indian customers, reverse charge applies — the Indian buyer pays GST, not the foreign supplier. Major foreign B2C providers (Netflix, Spotify, YouTube Premium India) have registered.

Is Indian SaaS export of services taxable under GST?

No, Indian SaaS export to foreign customers is zero-rated if export-of-services conditions met: (1) supplier in India, (2) recipient outside India, (3) payment in convertible foreign exchange, (4) place-of-supply outside India, (5) not establishments of distinct person. Charge ₹0 GST, claim refund of unutilised ITC.

What is the difference between OIDAR and traditional services for GST?

Traditional services place-of-supply rules vary by service type (general rule: location of supplier or service performance). OIDAR's special rule: always location of recipient. This matters for cross-border B2C — a US streaming service's "place of supply" for Indian B2C subscribers is India, hence Indian GST applies. For traditional services delivered to India from abroad, place-of-supply might be the foreign country.

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