What is OIDAR? Who will be responsible for paying tax in case of OIDAR?

What is OIDAR? OIDAR stands for Online Information and Database Access or Retrieval Services . These are services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology. Examples include: Advertising on the internet. Providing cloud services. Provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet. Providing data or information, retrievable or otherwise, to any person in electronic form through a computer network. Online gaming. Who will be responsible for paying tax in case of OIDAR? The responsibility for paying tax in case of OIDAR services depends on the location and registration status of the supplier and recipient: (i) Supplier outside India, Recipient is a registered business entity in India: If the supplier of such service is located outside India and the recipient is a business entity (registered person) located in India, the reverse charge mechanism would get triggered. The recipient in India (registered entity) will be liable to pay GST under reverse charge. (ii) Supplier outside India, Recipient is an individual consumer (unregistered person) in India: If the supplier is located outside India and the recipient in India is an individual consumer, i.e., an unregistered person, then the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services (IGST). The supplier is required to take a simplified registration. (iii) Intermediary located outside India: In case an intermediary located outside India arranges or facilitates the supply of such service to a non-taxable online recipient in India, the intermediary would be treated as the supplier of the service and liable to pay GST.