- Around 40-50 offshore entities have registered with GST authorities after investigation revealed non-payment of taxes on OIDAR supplies
- New registrations may increase GST revenue by a few hundred crores
- OIDAR services are provided online without physical interface with the supplier, including online advertising, cloud services, e-books, and online gaming
- DGGI is making efforts to make offshore entities aware of India’s tax laws and ensure compliance
- Total of 574 offshore entities have registered with GST department since introduction of GST in 2017
- DGGI is focusing on creating awareness among offshore suppliers rather than taking hard steps initially
- Complex business models for online services make taxability and valuation challenging, clarifications from government are needed
- Offshore providers of OIDAR services represent a “relatively untapped” sector with revenue potential
- Non-compliance of GST by offshore OIDAR service providers is more pronounced in online gaming industry.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
