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GST Registration for OIDAR

Ajju Dev (Software Engeneer) (28 Points)

10 May 2022

Is it mandatory to register for GST if the Supplier of service is in India and the Recipient of Service is outside India for OIDAR service?

Under which section Is it mentioned?

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6 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 10 May 2022

As per section 24 (Xi) of the CGST act , registration is compulsory for suppling OIDAR services, irrespective of the turnover . please go through section .

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 10 May 2022

OIDAR service providers providing services from India must obtain registration under GST if their aggregate annual turnover exceeds Rs. 20 Lakhs during a financial year. This limit is Rs. 10 Lakhs for special category states.

Under section 24 of the CGST Act, 2017 - Compulsory registration, OIDAR services providers who are located outside India and providing services in India are compulsory required to take registration.

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 10 May 2022

It's Section 24 (1) (Xi) of CGST Act

Ajju Dev (Software Engeneer) (28 Points)
Replied 10 May 2022

Thank you for your kind response:

Section 24 (1) (Xi):

Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

Here It is clearly mentioned service from a place outside India to a person in India. This is not my case though. In my case, I provide service from India to place of supply outside India.

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 11 May 2022

Dear Ajju Dev
As per Section 14 of IGST It's supplier who is liable to pay tax on such services and as per the proviso under subsection (2) of section 14 of IGST , That any person located in Taxable territory representing such for any purpose get himself Registered and pay Tax .

You can export services & not required to take registration Unless your aggregate turnover annually exceeds as per Threshold limit of 20 lac prescribed in section 22 of CGST Act .

Ajju Dev (Software Engeneer) (28 Points)
Replied 11 May 2022

Dear Pankaj,

Thank you again for the quick reply.

Section 14 of IGST under subsection (2) mentions the Supplier of OIDAR referred to in sub-section (1) which is any person located in a non-taxable territory.

And again the clause "Provided that any person located in the taxable territory representing such supplier" is clearly referring to an intermediary.

Both above statements are not true in my case.

1. I am located in the taxable territory. providing service in a non-taxable territory (Export)

2. I am not an intermediary.

I hope I am clear.