GST - OIDAR services

ITC / Input 540 views 2 replies

swati

Unemployed

300 Points Posted on 06 October 2022

- one typical issue of OIDAR

1. Mr.X is a normal tax payer. Mr. X has online backup server a
In Maharashtra and another backup server at Gujarat.

He makes payment of bill raised by MrB who has registered office at Gujarat.

Mr.B charges IGST for providing services related to server located at Maharashtra.

Mr.B charges CGST /SGST for providing services related to server located at Gujarat.

Accounting for Mr. B is simple and perfect.

The problem is how should Mr.X do the accounting of bill for services on server located at Gujarat???

Secondly, how to file returns to claim ITC ???

Replies (2)

Rajendra Prasad

Employee Private

1913 Points Posted on 07 October 2022

As per Place of supply provisions Mr. X is not eligible to avail ITC.

Tax Garden

Tax Consultant

576 Points Posted on 08 May 2026

For a GST-registered Indian business receiving OIDAR services from a foreign provider (Google, AWS, Zoom, LinkedIn Ads, etc.), you are the one responsible for GST under RCM if the foreign provider is not registered in India. You self-assess the GST, pay it in GSTR-3B, and can immediately claim it back as ITC in the same return period, as long as the service is used for business and is not blocked under Section 17(5). The newer broad definition of OIDAR post-2023 means more hybrid digital services qualify, so it is worth reviewing your vendor list. Full compliance guide including GSTR-5A and the ITC claim process: https://taxgarden.in/blog/oidar-gst-compliance-india-2026-foreign-digital-services-gstr-5a