Special provision for payment of tax by a supplier of online information and database access or retrieval services [ Section 14 of IGST ]

OIDAR supplier liability for integrated tax: supplier or intermediary rules determine who must pay and register for tax.

Supply of OIDAR services located in a non taxable territory to a non taxable online recipient makes the supplier liable for integrated tax. An intermediary in the non taxable territory arranging such supplies is deemed the recipient and treated as supplying to the online recipient unless it (a) issues a bill identifying the supplier and service, (b) does not collect or process payment, (c) does not authorise delivery, and (d) does not set the general terms. The supplier must take a single registration under the Simplified Registration Scheme; a taxable territory representative or appointed person must register and pay IGST on the supplier's behalf.