Section 14 IGST Act - Tax on OIDAR Services Supplied from Outside India
Section 14 of the Integrated Goods and Services Tax Act, 2017 creates a special mechanism for payment of IGST when online information and database access or retrieval services, commonly called OIDAR services, are supplied by a person located in a non-taxable territory to a non-taxable online recipient in India.
Updated: 27 September 2026. The explanation below reflects the broadened OIDAR and non-taxable online recipient definitions effective from 1 October 2023.
What Section 14 of the IGST Act provides
Section 14(1): On a supply of OIDAR services by a person located in a non-taxable territory to a non-taxable online recipient, the supplier located in the non-taxable territory is liable to pay integrated tax on that supply.
The proviso deals with an intermediary located in a non-taxable territory that arranges or facilitates the OIDAR supply. Such an intermediary is generally treated as receiving the service from the overseas supplier and supplying it to the non-taxable online recipient unless all the statutory conditions discussed below are satisfied.
Meaning of OIDAR services
Section 2(17) of the IGST Act defines online information and database access or retrieval services as services whose delivery is mediated by information technology over the internet or an electronic network and whose nature makes their supply impossible to ensure in the absence of information technology.
The statutory definition includes electronic services such as internet advertising, cloud services, e-books, movies, music, software and other intangibles supplied through telecommunication networks or the internet, providing data or information in electronic form, digital content supplies, digital data storage and online gaming other than online money gaming.
Who is a non-taxable online recipient?
Under Section 2(16) of the IGST Act, a non-taxable online recipient means an unregistered person receiving OIDAR services who is located in the taxable territory. For this purpose, an "unregistered person" also includes a person registered solely under Section 24(vi) of the CGST Act, which concerns persons required to deduct tax under Section 51.
The earlier limitation based on receiving OIDAR services for purposes other than commerce, industry, business or profession no longer forms part of this definition from 1 October 2023.
When an overseas intermediary becomes liable
An intermediary outside India that arranges or facilitates the supply is deemed to be the recipient from the original overseas supplier and the supplier to the Indian non-taxable online recipient, unless all of the following conditions are met:
- The invoice, customer bill or receipt issued or made available by the intermediary clearly identifies the service and the supplier located in the non-taxable territory.
- The intermediary does not authorise the charge to the customer and does not collect or process the payment or become responsible for payment between the recipient and the supplier.
- The intermediary does not authorise delivery of the service.
- The general terms and conditions of the supply are set by the supplier of the service and not by the intermediary.
Registration and payment of IGST
Section 14(2) requires the overseas OIDAR supplier covered by Section 14(1) to obtain a single registration under the simplified registration mechanism for payment of integrated tax. The CGST Rules provide a special registration route for a person supplying OIDAR services from outside India to a non-taxable online recipient.
If the overseas supplier has a person in the taxable territory representing it for any purpose, that representative must obtain registration and pay IGST on behalf of the supplier. If the supplier has neither a physical presence nor such a representative in the taxable territory, it may appoint a person in the taxable territory to pay IGST, and that person becomes liable for payment.
Section 14 at a glance
| Issue | Current position |
|---|---|
| Supplier | Person located in a non-taxable territory supplying OIDAR services. |
| Recipient covered | Non-taxable online recipient, broadly an unregistered person located in taxable territory. |
| Person liable for IGST | Normally the overseas OIDAR supplier, subject to the intermediary deeming rule. |
| Registration | Single registration under the special or simplified registration framework applicable to overseas OIDAR suppliers. |
| Return | The GST rules prescribe FORM GSTR-5A for registered overseas OIDAR suppliers covered by the special framework. |
| Key 2023 change | The recipient and OIDAR definitions were widened with effect from 1 October 2023. |
Practical effect of Section 14
The provision is designed to collect IGST on specified digital services consumed in India even where the supplier has no ordinary establishment in India. A foreign digital service provider should therefore determine whether its supply falls within the current OIDAR definition, whether the Indian customer is registered under GST, and whether the supplier itself or a facilitating intermediary is treated as the person liable to pay tax.
Where the Indian recipient is a registered person outside the statutory meaning of a non-taxable online recipient, the tax treatment should be examined separately under the applicable IGST and reverse-charge provisions rather than assuming that Section 14 applies.
Official GST references
For the current consolidated law, amendments, registration rules, notifications and portal procedures, refer to the official CBIC GST Tax Information Portal and the GST Common Portal. These official resources should be checked when acting on registration, return or payment requirements because rules, forms and portal procedures may be amended.