Cross border digital supplies and the OIDAR overlap

A platform in one country, a supplier in another, a consumer in India. Three provisions compete for the transaction.

Anandaday Misshra, Founder and Managing Partner, AMLEGALS · 6 min read · updated 3 September 2026
The short answer

A cross border digital supply to an Indian consumer may fall within the OIDAR scheme, requiring the foreign supplier to register and pay tax, or within the import of services provisions where the Indian recipient is registered and accounts under reverse charge. Where the supply is made through a foreign intermediary platform, the platform may be deemed to be the supplier unless the conditions for exclusion are satisfied. Where an Indian platform facilitates the supply, the electronic commerce operator provisions may also apply.

Deciding which provision applies

Is the Indian recipient registered? If yes, it is an import of services and reverse charge applies. If not, the OIDAR scheme is engaged.

Is the supply made through an intermediary platform located outside India? If yes, the platform may be deemed the supplier unless the invoice identifies the service and the supplier, and the platform does not authorise the charge or the delivery and does not set the terms.

Is an Indian platform involved? Then the electronic commerce operator provisions and Section 9(5), where applicable, must be considered as well.

The answer changes the compliance obligation entirely, and the classification has to be made at the transaction level rather than at the entity level.

The practical exposures

A foreign supplier discovering an OIDAR registration obligation after years of supplies to Indian consumers, with interest and penalty and no ability to recover from consumers.

An Indian business with unrecorded foreign subscriptions, which is a reverse charge exposure discovered in audit.

An Indian platform reselling foreign digital services, where the characterisation as own account supply or facilitation determines the treatment.

Withholding tax and equalisation levy questions running alongside, which are separate but affect the same commercial negotiation.

What to do on Monday

  1. Classify each cross border digital transaction at the transaction level, not the entity level.

  2. For Indian businesses, run the monthly foreign payment extract against the reverse charge register.

  3. For platforms, test the intermediary exclusion conditions against your actual invoicing and terms.

  4. Analyse GST alongside withholding and other levies for the commercial negotiation.

On your own facts

This page states the general position. A reader with a specific question on their own facts may write to the GST practice at AMLEGALS.

Write to the GST practice

Questions we are asked on this

Which applies, OIDAR or reverse charge?

OIDAR where the Indian recipient is unregistered; import of services with reverse charge where it is registered.

Is the foreign platform liable?

It may be deemed the supplier unless the conditions for exclusion are satisfied. Examine the invoicing and the terms.

Does an Indian reseller change the analysis?

Yes. An Indian entity supplying on its own account is an ordinary supplier for that supply.

How do Indian businesses find their exposure?

A monthly extract of foreign currency payments reconciled to the reverse charge register. It finds almost all of it.

Do other levies apply?

Withholding tax and other levies may apply on the same payment. Analyse them together for the commercial position.

In this cluster

GST Insights is published by AMLEGALS for general information. Law stated as on 3 September 2026. Not advice on any particular set of facts; not an advertisement or a solicitation under Rule 36 of the Bar Council of India Rules. Readers with a question on their own facts may write to the GST practice of their own accord.