Foreign platform OIDAR services

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This discussion clarifies the Goods and Services Tax (GST) implications for Online Information and Database Access or Retrieval (OIDAR) services obtained from foreign platforms. If you're an Indian resident using these services for a business outside India, GST on a Reverse Charge Mechanism (RCM) basis is applicable because the place of supply is considered India. However, GST is not applicable if the OIDAR service is provided free of cost. Registration under GST is required for RCM applicability.

PRARTHANA PATIL

PRARTHANA PATIL (Querist)

25 July 2021 If one is using 'PAID' OIDAR services from foreign platform, for a business outside India. Then does he/ she have to pay GST on RCM basis for availing that OIDAR service?
What are the GST implications if OIDAR service is provided 'free of cost'?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 July 2021 Services utilised outside India, it will not be considered as import of service hence RCM not applicable.

PRARTHANA PATIL

PRARTHANA PATIL (Querist)

25 July 2021 If the person using it is an indian resident but business is outside India, still GST is not applicable?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 July 2021 In such a case the place of supply is India hence RCM applicable.
RCM not applicable in case of free of supply.

PRARTHANA PATIL

PRARTHANA PATIL (Querist)

25 July 2021 Thank you so much , Sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 July 2021 You are welcome.........
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CA Altamush Zafar

CA Altamush Zafar (Expert)

25 July 2021 If you are registered under GST then RCM applicable otherwise RCM not applicable.

Udaya Chandran

Udaya Chandran (Expert)

26 July 2021 If the recipient is located in the taxable territory, i.e. India, and the supplier of service is located in the non-taxable territory, then the recipient is liable to pay tax under RCM. The place of supply is where the recipient is located. The recipient is to pay IGST under RCM and has to get GST registration.

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