Is there a free VAT/GST threshold for foreign digital sellers?

No free threshold for foreign OIDAR B2C suppliers — register from the first supply to unregistered Indian recipients

Is a local tax representative mandatory?

Not required for the simplified OIDAR registration as of 2026-10-29

No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice

Compendium · Asia · India

India: GST (OIDAR) on digital services

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Not supported by the free-threshold API · Local term: GST (OIDAR)

Last verified: 2026-10-29

Foreign OIDAR suppliers to unregistered Indian recipients (B2C) must take simplified all-India GST registration, charge 18% IGST, file GSTR-5A monthly by the 20th (including nil returns), and pay. Supplies to GST-registered Indian businesses are reverse-charged by the recipient — the foreign supplier does not collect GST on those. From Jan 2027, large Indian business buyers (≥ ₹5 crore turnover) must e-invoice RCM self-invoices for imported services (consumer OIDAR track unchanged)

Not supported by the free-threshold API: why

OIDAR registration from first sale; no free threshold for foreign B2C digital supplies to non-taxable recipients

Spot a mistake in India’s rules?

Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.

Threshold and rates (GST (OIDAR))

Free threshold?: No — OIDAR registration from first sale; no free threshold for foreign B2C digital supplies to non-taxable recipients
Amount / measure: INR 0
No free threshold for non-resident OIDAR suppliers to unregistered Indian recipients — registration is mandatory from the first in-scope B2C supply (CGST Act registration list / GST portal Non-Resident Online Services Provider)
Window: No threshold (from the first sale)
Standard rate: 18.0%
18% IGST on OIDAR supplies to non-taxable online recipients in India (IGST Act s.14). Same rate typically under reverse charge for registered recipients
Who must register: Persons supplying OIDAR services from outside India to non-taxable online recipients in India. OIDAR definition widened from 1 Oct 2023 (Finance Act 2023) to drop the “essentially automated / minimal human intervention” test. Online money gaming from outside India to a person in India also triggers registration
Evidence of location: Place of supply for OIDAR to non-taxable online recipients is India. GST portal guidance does not publish a fixed two-evidence checklist for foreign OIDAR as of 2026-10-29; keep billing address, IP/geolocation, payment-instrument country and other location indicators used commercially
Invoicing: Charge 18% IGST on B2C OIDAR invoices. For B2B to registered persons, do not charge Indian GST — recipient self-assesses under reverse charge. From 1 Jan 2027, certain Indian RCM recipients must e-invoice those self-invoices
Filing: Monthly Form GSTR-5A by the 20th of the following month (or extended date). Nil returns mandatory. Prior period must be filed before the current period. File via gst.gov.in Returns Dashboard
Effective: OIDAR GST framework under IGST Act; definition and non-taxable online recipient changes effective 1 Oct 2023. E-invoicing of RCMIMP self-invoices for Indian businesses with turnover ≥ ₹5 crore from 1 Jan 2027 (Notification 04/2026–Central Tax) — affects Indian recipients, not the foreign OIDAR B2C filing track
Authority: Central Board of Indirect Taxes and Customs / GSTN

What Botchannels returns

Ruleset version: 2026-10-22.v1
Decision summary: Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
Product class: Digital service
Support status: Not supported by the free-threshold API — OIDAR registration from first sale; no free threshold for foreign B2C digital supplies to non-taxable recipients

How to register

Self-register online?: Yes — Partly. OIDAR / Non-Resident Online Services Provider registration is filed on the GST portal, but the authorised signatory must be an Indian resident with a valid PAN (centralised processing Bengaluru West)
Resident representative / fiscal agent: Authorised signatory must be Indian-resident with PAN. A separate Indian business establishment / PE is not required solely for OIDAR simplified registration
Regime: Simplified registration as Non-Resident Online Services Provider / OIDAR on gst.gov.in (Form GST REG-10) — single all-India GSTIN

Steps (in order)

Read the GSTN user guide for Non-Resident Online Services Provider registration — https://tutorial.gst.gov.in/userguide/registration/Non-Resident_Online_Services_Provider_manual.htm
Appoint an Indian-resident authorised signatory (PAN) and gather REG-10 uploads
Apply on the GST portal (Form GST REG-10). Registration is centrally processed (Bengaluru West)
On approval, obtain GSTIN; charge IGST on OIDAR B2C supplies and file as prescribed

Documents

Passport of the non-resident provider — With visa details where applicable (Form GST REG-10 checklist)
Certificate of incorporation / origin-country licence — For companies; India clearance certificate if applicable
Authorised signatory appointment — Authorisation letter and/or board resolution; signatory photograph; signatory must be Indian resident with PAN
If Indian representative appointed — Proof of appointment and Indian business-address documents; representative PAN, email, mobile

Official processing time: Not specified as a single SLA in the GSTN manual as of 2026-10-29; processed centrally after complete REG-10
Official fees: No GST registration fee for OIDAR REG-10 stated in the materials reviewed
Portal: https://www.gst.gov.in/
Local bank account: Pay IGST via GST portal payment options
Filing frequency: As prescribed for OIDAR (typically monthly — confirm GST portal)
Payment currency: INR
Input VAT recovery: OIDAR non-resident suppliers generally cannot claim ITC — confirm with GST / adviser
Portal language: English GST portal / tutorials
Penalties: CGST/IGST Act penalties for failure to register / pay

Firms offering this service

Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging

ClearTax — OIDAR GST registration guide — India tax compliance platform guide
KPMG India — Member firm
EY India — Member firm

Official sources

GST portal — Non-Resident Online Services Provider registration
GST portal FAQ — Form GSTR-5A
CBIC GST
GSTN e-Invoice advisory / Notification 04/2026–Central Tax (RCM e-invoice from 2027-01-01)
India registration portal

Last verified: 2026-10-29.

FAQ

Is there a free VAT/GST threshold for foreign digital sellers?: No free threshold for foreign OIDAR B2C suppliers — register from the first supply to unregistered Indian recipients
Is a local tax representative mandatory?: Not required for the simplified OIDAR registration as of 2026-10-29
What rate applies?: 18% IGST on B2C OIDAR supplies
Is this tax advice?: No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice