India GST OIDAR for Foreign Suppliers 2026
India is now the fastest-growing digital-services market in the world by transaction volume, and GST OIDAR rules apply to every foreign supplier that touches an Indian consumer. This guide is for B2B audiences — resellers, marketplaces, SaaS vendors and fintechs serving Indian retail demand — and covers the 18% rate, ₹20 lakh threshold mechanics, GSTIN registration via the simplified scheme, and the reverse-charge route for B2B trade.
What counts as OIDAR
OIDAR (Online Information and Database Access or Retrieval) was introduced under Section 2(17) of the IGST Act. The 2026 definition covers virtually every paid digital service crossing the border:
- Streaming (audio, video, gaming)
- SaaS subscriptions
- Digital downloads (apps, games, e-books)
- Online gift cards and prepaid top-ups
- Cloud storage and hosting
- Online advertising delivered to Indian audiences
The defining test is whether the supply is "automated and impossible without IT." Human-mediated remote consulting, for example, is not OIDAR — it is general import of services.
Threshold, rate and registration
| Parameter | Resident Indian seller | Foreign OIDAR supplier |
|---|---|---|
| Registration threshold | ₹20 lakh / ₹40 lakh | ₹0 (mandatory from first sale) |
| Standard GST rate | 18% (IGST/CGST+SGST) | 18% IGST |
| Registration form | REG-01 | REG-10 (simplified) |
| Return | GSTR-1, GSTR-3B | GSTR-5A |
| Physical presence | Required | Not required |
| Authorized representative | N/A | Required in India |
Foreign suppliers register via the GST portal using Form REG-10. You must appoint an authorized representative in India — typically a tax advisory firm — who is jointly liable for the tax. Most firms charge ₹50,000–₹150,000 per year for the role.
Monthly filing under GSTR-5A
OIDAR suppliers file GSTR-5A every month, due by the 20th of the following month. The return reports B2C supplies to Indian recipients only — B2B reverse-charge sales are excluded (the Indian buyer reports those in their own GSTR-3B).
Payment is in INR via authorized banks. Penalties for late filing: late fee of ₹200 per day capped at ₹5,000 per return, plus 18% per annum interest on the tax outstanding. Repeated default can result in:
- Cancellation of GSTIN
- Notice to Indian telcos and payment processors under Rule 14A to block the supplier's access
- Recovery proceedings under Section 79
B2B reverse charge
If the recipient has a valid GSTIN and uses the service for business purposes, the import is reverse-charged. The Indian buyer self-accounts the 18% IGST in their GSTR-3B and claims input tax credit if eligible. As supplier, you:
- Validate GSTIN against the GSTN portal API
- Invoice at 0% GST with the legend "Liable to reverse charge under Section 5(3) of IGST Act"
- Retain the validation evidence for 5 years
A common mistake is treating Indian recipients without a GSTIN as B2B because they look corporate. Without a valid GSTIN, the sale is B2C and you owe 18% IGST.
How FoxReload helps
FoxReload validates GSTINs in real time against the GSTN public API, applies the 18% IGST rate for B2C Indian sales, generates reverse-charge invoices for B2B, and exports GSTR-5A-ready ledgers monthly. Foreign distributors entering India can launch in days, not quarters.
This article is informational and not tax advice. India GST rules and OIDAR scope evolve frequently — always consult a qualified Indian tax professional before acting on these points.