GST on Digital Services — OIDAR, Netflix, Software Subscriptions and Foreign Apps

Digital services delivered over the internet by foreign providers — such as Netflix, Spotify, Adobe Creative Cloud, Zoom, LinkedIn Learning, foreign software-as-a-service (SaaS) platforms — are subject to GST in India under the "Online Information and Database Access or Retrieval (OIDAR)" provisions. Here is the complete guide to GST on digital services.

What Are OIDAR Services?

OIDAR services are services delivered over the internet or an electronic network where delivery is essentially automated with minimal human intervention. Examples:

• Streaming services — Netflix, Amazon Prime, Disney+, Spotify, YouTube Premium
• Cloud-based software — Adobe Creative Cloud, Microsoft 365, Salesforce, Zoom
• Online gaming
• E-books, digital magazines, online newspapers
• Online advertising (Google Ads, Meta Ads)
• Database access and online training courses delivered automatically

Who Pays GST on OIDAR Services?

B2B (Business to Business):

• When a GST-registered Indian business subscribes to a foreign OIDAR service — the Indian business pays GST under Reverse Charge Mechanism (RCM) on the subscription value
• GST rate: 18% IGST on the subscription amount
• The foreign provider does not need to charge GST — the Indian business self-assesses and pays
• ITC is available on RCM paid for OIDAR services used for business

B2C (Business to Consumer — individual subscribers):

• Foreign OIDAR providers must register for GST in India and charge 18% GST on subscriptions sold to Indian individual consumers
• Simplified registration available for foreign OIDAR providers (no physical presence in India required)
• Where services are provided through an Indian e-commerce platform, the platform is liable to collect and pay the GST

OIDAR for Indian Businesses — Practical Compliance

• If your company uses Adobe, Zoom, AWS, Google Workspace, GitHub etc. — verify if these invoices include 18% GST (these foreign providers are OIDAR-registered in India)
• If not included in the invoice — you must self-charge 18% RCM on the subscription cost
• Report RCM in GSTR-3B Table 3.1(d) and avail ITC in Table 4(A)(3)

Conclusion

GST on digital services — especially foreign OIDAR platforms — creates RCM obligations for every Indian business using cloud software and streaming tools. SPOTON identifies and correctly reports OIDAR RCM in monthly GSTR-3B filings for businesses across Kerala. Contact us for expert GST compliance services.