OIDAR for Fintech Tools: Why Payment & Forex Platforms Must Recheck GST Status?

Introduction

At Ebizfiling, we help businesses understand GST rules in simple language. Many payment gateways now deal with cross-border users and digital service flows. These operating models can trigger OIDAR rules and directly impact GST status. Fintech tools and forex platforms must review their position early to avoid notices, penalties, or tax gaps later.

Why OIDAR Matters for Payment Gateways Today?   

The GST law defines OIDAR as digital services delivered online with minimal physical contact. After the 2023 change, the law removed the phrase related to automation. This widened the scope and covered more fintech tools that operate through dashboards, APIs, and automated payment flows. Payment gateways handle recurring billing, currency conversion, card token systems, settlement dashboards, wallet movement, and verification tools. All these features fall under services delivered online. If the user is in India, the place of supply becomes India. This is why payment gateways must now review whether they fall under OIDAR.

Foreign fintech operators that serve Indian users do not get turnover exemption. GST applies from the first rupee of revenue. They must register under the simplified scheme on www.gst.gov.in and file GSTR 5A each month.Forex platforms also fall under this rule when they offer online currency tools, conversion engines, or algorithm driven systems. Even advisory dashboards or rate comparison tools may fall under OIDAR if they are delivered online through automated panels.

How OIDAR Applies to Fintech Tools    ?

OIDAR applies to any service that users access online, relies on internet delivery, does not involve any physical component, and is consumed by an Indian recipient. Most fintech tools fit this definition because they operate through online settlement reports, currency conversion dashboards, automated payment routing flows, API based verification systems, and cloud ledger tools. These features show that the service is delivered digitally, which meets the OIDAR test for place of supply. As a result, payment gateways and forex platforms that serve Indian users must review their GST registration needs and update their compliance process accordingly.

How Do Payment Gateways and Forex Platforms Check Their GST Status?

To avoid risk, fintech companies should use a clear approach.

Step 1: Identify all digital services  

List all online features. Note which actions rely on automation, API, cloud, or dashboard access.

Step 2: Determine Indian users  

Check how many users, merchants, or clients operate from India. Even one paying user can trigger GST.

Step 3: Check if the provider is foreign  

Foreign entities supplying OIDAR services to India must register under Form GST REG 10 through www.gst.gov.in.

Step 4: Check tax responsibility  

• For B2C users the foreign provider must collect IGST at 18 percent.

• For B2B users, the recipient pays under reverse charge, but the foreign provider must still issue correct invoices.

Step 5: File monthly returns  

Foreign OIDAR suppliers must file GSTR 5A. This return reports all inward supplies to Indian recipients.

GST Impact for Fintech OIDAR Services   

This table helps payment gateways understand how GST varies based on location and user type.

How Ebizfiling Helps You Avoid OIDAR GST Risks  ?

• We review your fintech model and identify which services fall under OIDAR based on actual user flow and delivery mode.

• We check your Indian user base and guide you on whether GST registration is needed, including REG 10 for foreign providers.

• We map your service features with GST rules and help you understand tax responsibility for both B2B and B2C users.

• We assist you with monthly compliance, including preparation and filing of GSTR 5A for foreign OIDAR suppliers.

• We help you set up proper invoicing, IGST collection, and documentation so you avoid penalties and tax gaps.

• We provide ongoing support so your payment gateway or forex platform stays compliant as your business scales.

Conclusion   

Payment gateways and forex platforms must now review their GST status under OIDAR rules. The law expanded the OIDAR scope and placed tax responsibility on digital service providers. A correct recheck helps fintech tools stay compliant and avoid risk. Ebizfiling supports companies in understanding their GST position and meeting all compliance needs with clarity.

Suggested Read :

OIDAR Compliance Roadmap for Foreign Startups

All About the Key Features of OIDAR Services

GST Registration for OIDAR Service Providers in India

GST Registration for Special Economic Zone Units and Developers

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