- India is increasing GST enforcement on foreign digital service providers not registered under the GST system.
- The Directorate General of GST Intelligence is targeting non-compliant entities under expanded OIDAR rules.
- The revised OIDAR definition includes services like virtual currencies, cloud computing, AI, online content, advertising, and education.
- The DGGI is reaching out to foreign service providers and their Indian partners with notices and guidance.
- Domestic businesses are asked to provide transaction details to support GST compliance.
- Payment service providers in India are directed to suspend transactions with unregistered foreign entities.
- Authorities are collecting financial data and pursuing international cooperation for information sharing.
- The DGGI seeks new legislative authority to block access to non-compliant websites.
- GST collections from overseas digital services have increased significantly since the OIDAR expansion.
- Several hundred foreign companies have registered under India’s OIDAR framework, with ongoing investigations into non-compliance.
Source: globalvatcompliance.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.
