How Online health platforms can trigger OIDAR in India?
Introduction
If you run a successful online health platform or provide foreign telemedicine services globally, you may assume that Indian taxes apply only if you have a physical presence in India. This assumption can be risky and costly. Under Indian GST law, automated digital services such as paid health apps, video consultations, AI-based diagnostics, wellness subscriptions, and remote coaching offered to Indian consumers are treated as OIDAR services.
This means that even a single paying user in India creates a mandatory obligation to obtain OIDAR registration, charge 18% GST, and comply with Indian tax rules. Ignoring this requirement can result in significant penalties and backdated tax demands. This guide explains how the rule works so you can expand your health platform in India without unexpected compliance issues.
What is OIDAR and Why It Matters to Online Health Platforms?
OIDAR stands for Online Information Database Access and Retrieval services. Under Indian GST law, this includes all digital services delivered over the internet without physical interaction.After a key update in 2023, OIDAR no longer requires “minimal human intervention.” This means even live services (like video-based consultations) may now qualify as OIDAR if delivered online to an Indian consumer.
OIDAR matters to online health platforms because it creates an immediate GST liability the moment even one Indian user without a GSTIN pays for your service. There is no turnover exemption, which means GST applies from the very first rupee earned in India. Many health services like AI diagnostics, therapy apps, wellness subscriptions, and remote coaching fall under OIDAR without the platform realizing it. Ignoring this can lead to backdated tax, interest, and penalties, and authorities can easily identify Indian users through billing details, IP address, card information, and payment data. This is why health platforms must assess OIDAR exposure early to avoid unexpected tax issues.
Types of Online Health Platforms that May Fall Under OIDAR
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AI-powered health diagnostics or symptom checker tools
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Subscription-based access to digital wellness content
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Cloud-hosted SaaS platforms for clinics or doctors
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Paid video consultation marketplaces or e-therapy
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Health coaching, yoga, or diet e-learning platforms
When Does an Online Health Platform Trigger Indian GST?
You’re liable if all these apply:
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You’re located outside India.
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You serve Indian users with online services.
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Your Indian user is not GST-registered (a consumer or small practitioner).
Even one Indian transaction can trigger GST. There’s no exemption limit for foreign suppliers under Section 24 of CGST Act
How Indian User Location is Determined ?
The GST law considers at least 2 of the following indicators:
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Billing address in India
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Card issued in India
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Indian IP address
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Phone country code
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Payment received through an Indian bank
If two indicators match, the service is considered used in India and GST is due.
Common Cases of Accidental OIDAR Triggers
|
Business Type |
Example |
OIDAR Risk |
|
Health e-learning |
Paid video yoga course |
Yes, content subscription |
|
SaaS platform |
Patient record system |
Yes, if sold to Indian clinics without GSTIN |
|
Therapy app |
One-on-one video sessions |
Yes, if Indian users pay directly |
|
Medical AI tool |
Chatbot-based triage |
Yes, automated = OIDAR |
|
B2B platform |
Sold to hospitals with GSTIN |
No, tax handled under reverse charge |
What are the Consequences of Ignoring OIDAR Registration?
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18% GST due on Indian consumer sales.
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Monthly GSTR-5A returns due by the 20th of every month.
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Interest on late payments from the due date.
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Penalty of ₹10,000 or 100% of tax evaded, whichever is higher.
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Payment gateway blocks or compliance notices if caught.
How Ebizfiling Supports Foreign Health Platforms ?
At Ebizfiling, we help foreign telemedicine providers stay compliant with Indian GST laws. Our dedicated service for OIDAR covers:
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Mapping services that fall under OIDAR
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Helping you identify Indian users using IP, billing, or card data
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Acting as your authorized representative in India
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Filing Form GST REG-10 on your behalf
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Managing monthly GSTR-5A returns
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Tracking rule updates from gst.gov.in and cbic-gst.gov.in
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Preventing compliance notices and penalties
What Should You Do If You Serve Indian Users?
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Know if your service is automated or delivered online
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Track if your users are from India using IP + billing address
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Check if they provided a GSTIN (B2B or B2C)
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Register for OIDAR as soon as one Indian user is served
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File monthly GSTR-5A and pay 18% GST on consumer sales
In Short,
If your online health platform reaches even a few users in India, OIDAR can apply before you realize it. The good news is that compliance is not complicated when handled the right way. At Ebizfiling, we take care of the GST side so you can focus on delivering quality digital health services to your users.
Suggested Read :
Balancing OIDAR GST Compliance with Digital Privacy Laws
OIDAR Compliance Roadmap for Foreign Startups
Why Foreign CRM Platforms Reassess OIDAR Liability GST 2023-24?
Why User Location Matters for OIDAR India?
Do Digital Nomads Abroad Trigger OIDAR for India?
Frequently Asked Questions on OIDAR for Online Health Platforms
1. What is OIDAR for online health platforms?
OIDAR refers to digital services delivered online without physical interaction. For health platforms, this includes automated health tools, symptom checkers, digital wellness subscriptions, e-learning content, and online consultations provided over the internet.
2. Do foreign telemedicine companies need GST registration in India?
Yes, foreign telemedicine or digital health providers must obtain GST registration in India if they serve even one Indian user who is not GST registered, as required under Section 24 of the CGST Act.
3. Is there a minimum sales limit before GST applies?
No, there is no turnover threshold for foreign OIDAR suppliers. GST applies from the very first transaction made with an Indian consumer.
4. How much GST applies to online health services?
Most digitally delivered online health and wellness services attract 18 percent Integrated GST (IGST) under the OIDAR provisions.
5. Are live consultations considered OIDAR?
Yes, after the 2023 interpretation changes, even live consultations, coaching sessions, or therapy calls delivered online may be treated as OIDAR services.
6. How can I identify if a user is located in India?
A user is treated as located in India when at least two indicators match, such as an Indian billing address, Indian IP address, Indian phone number, Indian-issued card, or payment from an Indian bank account.
7. Can Indian hospitals pay GST under reverse charge?
Yes, if the customer is a GST-registered hospital or clinic and provides a valid GSTIN, the supply becomes B2B and GST is paid by the hospital under the reverse charge mechanism.
8. What is GSTR-5A?
GSTR-5A is the mandatory monthly GST return that foreign OIDAR service providers must file, reporting all services supplied to Indian users and the IGST paid.
9. What happens if I do not register and continue selling in India?
Non-compliance can lead to tax demands on past sales, interest, penalties equal to or higher than the tax amount, GST notices, and possible payment gateway restrictions.
10. How can Ebizfiling help with OIDAR compliance?
Ebizfiling assists by assessing OIDAR applicability, completing GST registration through Form GST REG-10, filing monthly GSTR-5A returns, acting as an authorized representative in India, and ensuring end-to-end compliance without legal risks.
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