OIDAR Compliance Guide for Global Startups

Introduction

Thinking of selling digital services—from cloud platforms to streaming, to the massive Indian market? Then OIDAR compliance is your first essential compliance test. If your business offers OIDAR services to Indian consumers, India expects every foreign startup to secure OIDAR registration for foreign companies, charge a straight 18% GST, and smoothly file the monthly GSTR-5A return.

We believe compliance should follow a clear Compliance Roadmap. At Ebizfiling, we help founders treat this mandate as a simple launch checklist, ensuring you enter the market with confidence, not last-minute panic. Let’s explore this in detail in this article.

What is OIDAR and why does it matter for foreign startups?  

Online Information Database Access and Retrieval, or OIDAR, covers digital services delivered over the internet without any physical interaction with the supplier. Typical examples include online ads, cloud storage, SaaS tools, streaming, digital content, and online gaming subscriptions. For foreign startups, the key rule is simple: if you supply OIDAR services from outside India to users in India who are not registered under GST, you must register in India and pay GST yourself. So even if you have zero office, zero staff, and only a landing page that accepts Indian cards, the Indian GST law still applies.

Key OIDAR services covered under GST  

• Cloud storage, SaaS subscriptions, project management tools and CRMs

• Downloadable software, apps, games, e books, music or video content

• Online ads, marketing platforms, and analytics dashboards

• Online learning platforms and digital knowledge libraries

If your product looks like any of these, assume OIDAR applies and build compliance into your India launch plan.

How does GST treat OIDAR services from foreign startups?  

Under Indian GST, OIDAR services to Indian consumers attract 18 percent Integrated GST.

• For B2C users or unregistered entities in India, the foreign supplier collects and pays GST.

• For B2B users who share a valid GSTIN, the Indian customer pays GST under reverse charge, and you do not collect tax.

This means your checkout flow must clearly separate business customers from consumer customers, and your invoices must show GSTIN, place of supply, and IGST breakup as required. correctly.

Monthly GSTR 5A obligation  

Every foreign startup with OIDAR registration must file Form GSTR 5A every month. The due date is the 20th of the following month, and filing is mandatory even if there are no transactions in that period.

Key points:

• One GSTIN for all India OIDAR services, obtained through the GST portal at www.gst.gov.in.

• GSTR 5A reports place of supply wise taxable value and IGST collected on OIDAR services.

• You cannot claim input tax credit under this simplified scheme, so factor GST cost into your pricing.

How to build an OIDAR compliance roadmap before launch  

From Ebizfiling’s perspective, a foreign startup should treat OIDAR compliance like a pre launch sprint. Here is a practical roadmap.

Step 1: Confirm your OIDAR exposure  

• Map all your India touchpoints: app stores, website payments, platform integrations.

• Identify which plans or features are open to Indian users and whether they are B2B, B2C, or both.

• Decide early whether you want to serve only registered businesses or consumers as well.

Step 2: Complete OIDAR registration for foreign companies  

The correct form for foreign startups is Form GST REG 10, available on the GST portal under the Non Resident Online Services Provider section.

You will typically need:

• Incorporation documents and tax registration of the parent entity

• Passport or ID of authorized signatory

• Details of your primary website or platform that delivers OIDAR services to Indian Users.

• Details of your Indian representative.(Mandatory if you have no physical presence in India)

After approval, you receive a GSTIN that you will use for all returns and payments in India.

Step 3: Set up invoicing and payment rules  

Once registered, configure your billing system so that it:

• Identifies Indian users using country, billing address, and IP checks

• Collects 18 percent IGST for non GST registered customers in India

• Captures GSTIN for business customers and automatically switches them to reverse charge

• Shows your GSTIN, place of supply, and IGST break up on every invoice as per GST rules

Step 4: Align your finance and product teams  

To keep OIDAR compliance smooth:

• Finance tracks monthly India revenues and reconciles them with GSTR 5A data.

• Product ensures location logic and tax toggles work across web, app, and third party payment gateways.

• Founders approve a clear policy on pricing, tax inclusive or exclusive, for India.

Step 5: Lock a filing and payment routine  

Ebizfiling usually sets the following rhythm for our foreign startup clients:

• By the 5th day: freeze prior month India reports from your platform or payment gateway.

• By the 10th day : prepare GSTR 5A draft, cross check state wise breakup, and get founder sign off.

• Before the 20th day : pay IGST in INR on the GST portal and file the final return.

This simple routine avoids late fees and interest, and keeps your India launch completely clean.

How should foreign startups choose an India entry structure?  

OIDAR registration alone is enough to start selling digital services into India. Over time, many startups move to a deeper presence.

Common structures for foreign startups  

Ebizfiling helps you compare these options and pick a path that fits your runway, risk level, and product stage.

How Ebizfiling helps with OIDAR compliance for foreign startups  

We work as your India compliance partner so that OIDAR does not slow product launches. In a typical engagement we:

• Map your India user journey and confirm whether your product qualifies as OIDAR services.

• Handle complete OIDAR registration for foreign companies through Form GST REG 10 on gst.gov.in.

• Configure practical invoicing rules and share sample invoice formats tailored to your platform.

• Prepare and file monthly GSTR 5A returns, including state wise breakup, on the GST portal.

• Advise on when it is time to upgrade from pure OIDAR registration to an Indian subsidiary or branch, and then manage MCA, RBI, and income tax compliance via mca.gov.in and related portals.

For founders, the experience stays simple: one team, one dashboard, and clear reminders for every India due date.

In short, OIDAR compliance in India is no longer optional for foreign startups that sell digital services to Indian users. With the right roadmap, you can treat OIDAR registration, GSTR 5A filing, and India specific invoicing as a clean launch checklist rather than a blocker. Ebizfiling is happy to sit on your side of the table, translate GST and MCA rules into clear action steps, and keep your OIDAR journey steady while you focus on growth.

Suggested Read :

Step by Step Guide on GST Registration for Foreigners

Why More MNCs Are Choosing India for Their Subsidiary Headquarters in Asia

FEMA Compliance in India

All You Need To Know About GST Registration for OIDAR Service Providers

Frequently Asked Questions on ESIC Registration for New Companies