GST on OIDAR Services by Foreign Firms to Individuals & Govt from Oct 1, 2023

GST chargeable on OIDAR services by foreign firms to individuals & Govt irrespective of any usage w.e.f. October 1, 2023

•The GST Council has decided to amend GST rules to track tax payments by registered persons on OIDAR services received from foreign providers.

•From October 1, 2023, OIDAR services provided by foreign firms to individuals and government in India will be taxable, regardless of purpose. This aims to expand GST net to foreign service providers.

•The Finance Act 2023 amended the IGST Act to expand the definition of "non-taxable online recipient" to include any unregistered individual receiving OIDAR services in India, regardless of purpose.

•Foreign OIDAR service providers will now have to register and comply with GST in India to pay tax on supplies to unregistered individuals in India.

•The GST rules have been amended to require foreign OIDAR service providers to file GSTR-5A returns to report supplies made to registered persons in India.

•Exemption from GST on OIDAR services provided by foreign firms to central and state governments for non-business purposes has been removed from October 1, 2023.

•Foreign companies providing OIDAR services to individuals and government in India will now have to obtain GST registration and comply with GST law to pay applicable taxes.

Hope this summary helps! Let us know if you need any clarification or have additional questions.