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.
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.
AI-powered health diagnostics or symptom checker tools
Subscription-based access to digital wellness content
Cloud-hosted SaaS platforms for clinics or doctors
Paid video consultation marketplaces or e-therapy
Health coaching, yoga, or diet e-learning platforms
You’re liable if all these apply:
You’re located outside India.
You serve Indian users with online services.
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
The GST law considers at least 2 of the following indicators:
Billing address in India
Card issued in India
Indian IP address
Phone country code
Payment received through an Indian bank
If two indicators match, the service is considered used in India and GST is due.
|
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 |
18% GST due on Indian consumer sales.
Monthly GSTR-5A returns due by the 20th of every month.
Interest on late payments from the due date.
Penalty of ₹10,000 or 100% of tax evaded, whichever is higher.
Payment gateway blocks or compliance notices if caught.
At Ebizfiling, we help foreign telemedicine providers stay compliant with Indian GST laws. Our dedicated service for OIDAR covers:
Mapping services that fall under OIDAR
Helping you identify Indian users using IP, billing, or card data
Acting as your authorized representative in India
Filing Form GST REG-10 on your behalf
Managing monthly GSTR-5A returns
Tracking rule updates from gst.gov.in and cbic-gst.gov.in
Preventing compliance notices and penalties
Know if your service is automated or delivered online
Track if your users are from India using IP + billing address
Check if they provided a GSTIN (B2B or B2C)
Register for OIDAR as soon as one Indian user is served
File monthly GSTR-5A and pay 18% GST on consumer sales
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.
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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.
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.
No, there is no turnover threshold for foreign OIDAR suppliers. GST applies from the very first transaction made with an Indian consumer.
Most digitally delivered online health and wellness services attract 18 percent Integrated GST (IGST) under the OIDAR provisions.
Yes, after the 2023 interpretation changes, even live consultations, coaching sessions, or therapy calls delivered online may be treated as OIDAR services.
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.
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.
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.
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.
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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