With the growth of digital services, compliance for Online Information and Database Access or Retrieval (OIDAR) service providers has become increasingly significant under GST. Non-resident service providers supplying digital services to customers in India must adhere to specific return filing requirements.

What are OIDAR Services?

OIDAR services refer to services delivered over the internet with minimal human intervention. These include:

• Online advertising services

• Cloud services

• Streaming platforms

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• E-books, music, and software downloads

As per Section 2(17) of the IGST Act, 2017, such services are categorized as OIDAR.

Applicable Return: GSTR-5A

OIDAR service providers are required to file Form GSTR-5A, which captures:

• Summary of outward taxable supplies made to non-taxable online recipients

• Tax payable on such supplies

This requirement is prescribed under:

• Section 39 of the CGST Act, 2017

• Rule 64 of the CGST Rules, 2017

Who is Required to File GSTR-5A?

• Non-resident OIDAR service providers supplying services to:

  • Individuals

  • Unregistered persons in India

Such providers are required to obtain GST registration under Section 14 of the IGST Act, 2017, even without a physical presence in India.

Due Date for Filing

• GSTR-5A must be filed monthly

• Due date: 20th of the succeeding month

For example:

• For March 2026, the due date is 20th April 2026

Key Details to be Reported

• Taxable value of outward supplies

• Place of supply (India)

• Applicable IGST payable

• Details of amendments, if any

Important Compliance Considerations

• GST is payable at 18% IGST on most OIDAR services

• No Input Tax Credit (ITC) is generally available to non-resident OIDAR providers

• Proper classification of customers (registered vs unregistered) is crucial

Consequences of Non-Compliance

• Late fee under GST law:

  • ₹50 per day (₹25 CGST + ₹25 SGST equivalent, though IGST applicable)

• Interest @ 18% p.a. on delayed tax payment

• Risk of regulatory scrutiny and penalties

Conclusion

OIDAR service providers must ensure timely filing of GSTR-5A to remain compliant with Indian GST laws. With the due date of 20th April 2026 for March 2026, businesses should focus on accurate reporting and timely tax payment to avoid penalties.

For expert guidance on this topic, contact your tax professional today.