India releases Union Budget 2023

Key indirect tax proposals

  • The Budget proposes to expand the scope of Online Information and Database Access or Retrieval (OIDAR) services under the Goods and Services Tax (GST). The condition of essential automation and involvement of minimal human intervention is proposed to be removed from the definition of OIDAR services. Thus, emphasis will be placed only on information technologyrequired to provide such service.
  • The definition of non-taxable online recipient is also proposed to be amended to cover all cases irrespective of business or any other purpose.
  • A penalty will be prescribed for e-commerce operators in the case of contravention of provisions relating to supplies of goods made through them by unregistered persons or composition taxpayers.
  • Input Tax Credit will not be available with respect to goods or services which are used or intended to be used for activities relating to obligation under corporate social responsibility referred to in section 135 of Indian Companies Act, 2013.

Source EY


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