In short
- Answer: A company outside India that sells software or other digital services over the internet to people in India has to register for GST in India. The guides we read agree there is no turnover threshold, so the first sale to an Indian consumer is enough. The registration is a single "simplified" one, the tax is 18% IGST, the monthly return is GSTR-5A and it is due by the 20th of the next month. A supplier can also appoint a representative in India to register and pay for it. These rules cover sales to people who are not registered for GST; a GST-registered Indian business that buys from you normally pays the tax itself.
- This page rests on advisory firms' guides read on 29 October 2026, not on the Act. We could not open the Act, the CBIC leaflet or the West Bengal FAQ.
What OIDAR means
OIDAR stands for online information and database access or retrieval. India Briefing's April 2026 guide describes it as "digital services delivered over the internet with minimal human intervention", automated and impossible without information technology. A software subscription, a cloud tool or a downloadable service that a customer buys online is the usual case. If your product has a lot of human work in it, such as custom consulting, ask your CA whether it fits.
The place of supply for these services is the location of the recipient (Section 13 of the IGST Act, as the guides describe it). If the customer is in India, the supply is taxable in India, whatever country you invoice from.
Who the customer is
The rule that applies depends on who buys.
| Your customer in India | Who pays the GST | What you must do | Checked |
|---|
| A person without a GST registration (the guides call this a non-taxable online recipient) | You, the foreign supplier, at 18% IGST | Register, charge and file GSTR-5A | 29 Oct 2026 |
| A business with a GST registration | The Indian business, under reverse charge, as our GST on SaaS page explains | Keep a valid invoice and the buyer's GSTIN | 29 Oct 2026 |
| A buyer through a marketplace or app store | Depends on who is treated as the supplier | Read the intermediary rule below | 29 Oct 2026 |
Sources differ on who counts as a non-taxable online recipient. India Briefing says it is a person in India, not registered under GST, who receives the services for non-business (personal) purposes. A Taxguru explainer dated 10 November 2023 refers to a change that took effect on 1 October 2023, and we did not read what it changed. Check the current definition in the IGST Act before you decide that a small business buyer falls outside the rule.
The registration
- No threshold. India Briefing says no threshold exemption applies, and ClearTax says registration is required "irrespective of their turnover". The usual exemption for small suppliers does not help an overseas OIDAR seller.
- One simplified registration. The supplier takes a single registration to pay IGST. Taxguru says the form is GST REG-10, that it can be submitted online with a self-attested copy of a valid passport, and that it should be filed at least five days before you start doing business in India. India Briefing's guide does not name the form, so confirm the form on the GST portal.
- A representative in India. Both India Briefing and ClearTax say a supplier can or must appoint a representative in India, who registers and pays the tax on its behalf. If you already have one, the representative does the filing.
- Marketplaces. India Briefing says an intermediary is not treated as the supplier only if four conditions are met; if one is missing, the platform becomes the deemed supplier. If you sell through an app store or platform, ask which side the platform treats itself as.
The ongoing work
- Rate. ClearTax gives the rate on digital services sold in India as 18% IGST. It says e-books are different, at a reduced rate of 5% under a separate code; check that with your CA before you apply it.
- Return. GSTR-5A lists all your supplies to Indian customers. India Briefing says it is monthly and due by the 20th of the following month.
- No input credit. ClearTax says non-resident OIDAR providers are not eligible to claim input tax credit.
- Example. A $20 monthly plan sold to an Indian consumer carries $3.60 of IGST if the tax is added on top, so the customer pays $23.60 and you remit $3.60 each month with the return. If you quote tax-inclusive prices, the tax is a share of the price you already charge and your margin falls.
A short checklist
- Decide whether each product is OIDAR. If it is delivered automatically over the internet, assume yes.
- Split your Indian customers into registered businesses and everyone else.
- For everyone else, apply for the simplified registration, or appoint a representative in India who will.
- Add 18% IGST to the price for those customers.
- File GSTR-5A every month by the 20th, even in a month with no sales if your CA says a nil return is required.
- Keep each invoice, the customer's location evidence and the tax paid for the audit.
What we did not check
- The text of the IGST Act and the CGST Rules. A reader comment on the Taxguru page points to Section 14 of the IGST Act for the supplier's liability; we did not read that section.
- The CBIC OIDAR leaflet and the West Bengal commercial taxes FAQ on OIDAR. Both are PDFs that would not open as text. A search listing for the West Bengal FAQ also names GST REG-10; we have not read the FAQ itself.
- Whether a nil GSTR-5A is required, how a foreign supplier pays in practice, and any change after the dates of the guides.
- Whether any Indian authority has changed the rate or the threshold since the guides were written.
Related
Questions people ask
Do I need to register for GST in India if I have only a few Indian customers?
The guides we read say yes, for sales to people who are not registered for GST: India Briefing says even minimal revenue from Indian consumers triggers registration, and ClearTax says registration is required irrespective of turnover. Ask a CA to confirm for your own case.
What is the GST rate on digital services sold to India?
ClearTax gives 18% IGST for digital services sold in India. The same page says e-books are taxed at a reduced 5%. We did not read the rate notification.
Which form is used to register?
Taxguru names GST REG-10 for the simplified registration for overseas suppliers, and a search listing for the West Bengal FAQ says the same. India Briefing does not name a form. Check the GST portal for the current form.
When is the return due?
India Briefing says GSTR-5A is monthly and due by the 20th of the following month.
Can I appoint someone in India to do this for me?
Yes. India Briefing and ClearTax both describe a representative in India who registers and pays the tax on the foreign supplier's behalf, and Taxguru says the representative pays the IGST where one exists.
Sources
- India Briefing, OIDAR compliance in India: GST registration, NTOR rules, published 7 April 2026, read 29 October 2026: india-briefing.com
- ClearTax, OIDAR GST registration (no date on the page), read 29 October 2026: cleartax.in/s/oidar-gst-registration
- Taxguru, OIDAR services taxability, dated 10 November 2023, read 29 October 2026: taxguru.in
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