Chapter V - Place of supply of goods or services
Section 14
Section 14: Overseas OIDAR suppliers
An overseas supplier of qualifying online information and database access or retrieval services (OIDAR) to a non-taxable online recipient in India is liable to pay IGST under Section 14. The section also addresses qualifying platforms and simplified registration.
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This article is for general information. Refer to the Integrated Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Introduction
First determine whether the service is OIDAR under Section 2(17) and whether the customer meets the current Section 2(16) definition of a non-taxable online recipient. The 2023 amendment defines that recipient as an unregistered person receiving OIDAR in the taxable territory, including a person registered only under CGST Section 24(vi).
Key takeaways
Overseas supplier bears IGST
For an OIDAR supply from outside the taxable territory to a non-taxable online recipient in India, Section 14(1) makes the overseas supplier liable to pay integrated tax.
Platform may be deemed supplier
An overseas intermediary arranging or facilitating that supply is treated as buying and resupplying it unless all four statutory conditions concerning supplier identification, payment, delivery and terms are satisfied.
Simplified registration
The overseas supplier must take a single registration under the notified simplified scheme. A representative or appointed person in India may bear the statutory payment role in the circumstances Section 14(2) describes.
Classify the service and recipient
Under the amended Section 2(17), OIDAR covers services delivered through information technology over the internet or an electronic network where supply cannot be ensured without that technology, including the listed digital-service examples. The former 'essentially automated and minimal human intervention' words were omitted in 2023; do not apply that older test.
The current Section 2(16) definition of non-taxable online recipient covers an unregistered person receiving OIDAR in the taxable territory and expressly includes someone registered solely under CGST Section 24(vi).
Direct overseas supply
Where an overseas OIDAR supplier supplies to a non-taxable online recipient in India, subsection (1) makes that supplier liable for IGST. Determine the recipient's location under Section 13(12), then check the Section 14 liability conditions.
When a platform is treated as the supplier
An overseas intermediary that arranges or facilitates the OIDAR supply is deemed to receive and resupply it unless it satisfies all four proviso conditions: its invoice identifies the underlying supplier and service; it does not authorise or process the charge; it does not authorise delivery; and it does not set the general terms of supply.
The payment flow, checkout controls, delivery controls and customer terms should be reviewed together. A platform label alone cannot establish the exception.
Registration and Indian representative
Subsection (2) calls for one registration under the simplified scheme. If the overseas supplier has a person representing it in the taxable territory, that person registers and pays on its behalf under the statutory proviso. If there is no physical presence or representative, the supplier may appoint a person in India for payment.
Use the current prescribed registration scheme and forms for filing mechanics; Section 14 states the liability framework rather than every procedural detail.
Practical checklist
Do
- Document why the digital service meets or does not meet the OIDAR definition.
- Record the Indian recipient's registration status and location evidence.
- For marketplaces, review all four statutory conditions using invoice, payment, delivery and terms records.
- Check the current simplified registration procedure and identify who is responsible for payment.
Frequently asked questions
Is every online service OIDAR?
No. Compare the actual service to amended Section 2(17): technology-mediated delivery must be essential to supplying it. The former minimal-human-intervention requirement was removed in 2023.
Is a marketplace always liable instead of the underlying supplier?
No. The deeming rule has an exception if the intermediary satisfies every condition in the proviso to Section 14(1).
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026