Filing for registration by provider of OIDAR Services

FILING FOR REGISTRATION BY PROVIDER OF OIDAR

What are OIDAR Services?

Online information and database access or retrieval services means services provided by the means of Information Technology, over internet or electronic network, such as advertising on internet, cloud services, e-books, downloading movies, software, online supplies of digital content (movies, t.v shows, music, data storage, gaming), etc.

Who are required to be registered as OIDAR Service Providers?

Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than the registered person (herein after referred to as Non-Resident Online Services Provider), is required to register in GST as a provider of OIDAR Services. So, for the provision of OIDAR Services by such foreign services providers to the unregistered persons in India, obtaining Registration by such foreign service providers is mandatory

GST Registration for OIDAR Service Providers

Any entity providing OIDAR services is required to mandatorily obtain GST registration in India, irrespective of the aggregate turnover criteria. The following types of taxable person are required to obtain GST Registration mandatorily and OIDAR service providers is one of them:

Persons making any inter-State taxable supply;
Casual taxable persons;
Persons required to pay tax under reverse charge;
Electronic commerce operators;
Non-resident taxable persons;
Persons required to deduct tax;
Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
Input service distributor (whether or not separately registered under the Act)
Persons required to collect the tax;
Electronic commerce operator
Every person supplying online information and database retrieval services from a place outside India to a person in India, other than a registered person;

Reverse Charge for OIDAR Services

Under GST, the supplier of goods and services is normally made liable for the collection and payment of IGST or CGST and SGST to the Government. However, OIDAR services have been placed under the list of Reverse Charge Services under GST, making the recipient of the service liable for payment of GST. Hence, all business entities receiving OIDAR services in India shall pay GST on behalf of the supplier.

SECTION-14: Special provision for payment of tax by a supplier of OIDAR services

I. On supply of OIDAR services by any person located in a taxable territory and received by a non –taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying the integrated tax on such supply of services.

Provided that in the case of supply of OIDAR services by any person located in the non taxable territory and received by the non-taxable online recipient , an intermediary located in the non-taxable territory , who arranges or facilities the supply of such services , shall be deemed to be the recipient of such services from the supplier of services in non-taxable territory and supplying such services to the non-taxable online recipient except when such intermediary satisfies the following namely :-

1. The invoice or customer’s bill or receipt issued or made available by such intermediary taking part in the supply clearly identifies the service in question and its supplier in The non-taxable territory.

2. The intermediary involved in the supply does not authorize the charge to the customer Or take part in its charge which is that the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-taxable online recipient and the supplier of such services.

3. The intermediary involved in the supply does not authorize delivery.

4. The general terms and conditions of the supply are not set by the intermediary Involved in the supply but by the supplier of services.

II.The supplier of OIDAR services referred to I sub section (1) shall , for payment of Integrated tax , take a single registration under the simplified registration scheme in FORM GST REG-10 to be notified by the government.

Who is a NON –taxable online recipient?

“Non-taxable online recipient “means any government , local authority , governmental authority , an individual or any other person not registered and receiving OIDAR services in relation to any purpose other than commerce, industry or any other business or profession , located in taxable territory- The expression “governmental authority”means an authority or a board or any other body,– Set by an act of parliament or a state litigation Established by any government With ninety percent or more participation by the way of equity or control, to carry out any function entrusted to a municipality under article 243W of the constitution.

How the authorized signatory of Non-Resident Online Services Provider login to the GST Portal for the first time?

Ans: After approval of Registration, the GSTIN and temporary password are sent to the primary authorised signatory through e-mail after which the below steps need to be followed:

Step-1: Login to the GST Portal through first-time login facility.

Step-2: Enter the provided GSTIN (username) and temporary password in the corresponding fields.

Step-3: Change the temporary password and create a username for future use. After creating the username and password, the Taxpayer will be able to access their dashboard on the GST Portal. For subsequent logins, the Taxpayer will have to use the normal login functionality.

Effective date of registration of all Non-Resident Online Services Provider on approval shall be:

i. Date of commencement of online services in India: If difference between ‘Date of commencement of online services in India’ and “Date of ARN for application for registration” is less than or equal to 30 days or

ii. Date of issue of Registration Certificate: If the difference exceeds 30 days from the date of issue of Certificate of Registration.

iii. In case the applicant is already providing online services in India prior to or as on Appointed Date, effective date of registration will be the ‘Date of commencement of online services in India’ specified in the form OR the appointed Date, whichever is later.

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