The world of Virtual and Augmented Reality (VR/AR) is opening a powerful new frontier for entertainment, education, and gaming among Indian users. However, as your VR or AR app reaches this fast-growing market, it also enters a critical compliance zone under India’s GST laws, especially the OIDAR framework. Digitally delivered VR/AR experiences are closely examined under OIDAR rules, making GST compliance unavoidable for foreign service providers.
At Ebizfiling, we understand that VR/AR services offered online are treated as OIDAR services under GST. This directly impacts pricing, invoicing, and reporting obligations. Foreign companies supplying paid VR/AR services to unregistered Indian users must obtain GST registration, charge applicable tax, and file monthly returns from the very first transaction. This article explains everything VR/AR businesses need to know to stay fully compliant with OIDAR GST requirements in India.
Virtual and augmented reality apps that stream or deliver automated digital experiences to Indian users meet India’s OIDAR definition.
Examples of OIDAR-compliant VR AR services:
VR games purchased and downloaded by Indian users
AR-based educational apps with paid upgrades or subscriptions
Virtual experiences like 360° tourism or fitness classes
If your service is delivered online without human interaction and consumed in India, it’s considered an OIDAR supply.
India levies 18% Integrated GST (IGST) on digital services provided by foreign entities to Indian consumers.
Key GST compliance rules:
No threshold: GST applies from the first rupee of B2C sale
B2B buyers pay tax under reverse charge; B2C sellers must register under OIDAR
Place of supply is determined by user’s billing address, IP, or payment method
You must obtain an Indian GSTIN via Form GST REG-10 before you start.
If your VR AR app is sold through app stores or VR platforms:
Apple App Store and Google Play usually collect and remit GST
Meta (Oculus/Quest) also includes Indian GST in pricing
If you use these platforms exclusively, you may not need to register. But for any direct sales, you are liable.
Once registered, you must file GSTR-5A by the 20th of every month. It includes:
Total sales to Indian consumers
GST collected
Currency conversion details
You must pay GST in INR via the GST portal. Ebizfiling can automate this process for you.
|
Type of Sale |
GST Responsibility |
|
Via Meta/Apple Store |
Platform remits GST |
|
Direct from website |
You must collect & file |
Platforms help simplify compliance, but if you sell directly, you need your own GSTIN.
We help global founders launch compliantly in India. Our OIDAR service for VR/AR developers includes:
Confirming whether your virtual reality apps fall under OIDAR
Completing GST REG-10 registration for foreign suppliers
Acting as your local GST representative if needed
Monthly filing of GSTR-5A and payment calculation
Support with record-keeping and customer invoice formats
With Ebizfiling, your India expansion stays legally clean, fully digital, and fully compliant.
VR AR apps are growing fast in India. If you deliver paid digital experiences to Indian users, OIDAR GST rules apply. With early registration and monthly compliance, you can operate smoothly. Ebizfiling simplifies this for foreign startups entering the Indian market.
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Yes. VR AR apps that deliver digital services to Indian users online, such as virtual games or AR learning tools, fall under OIDAR as defined under Indian GST law because they are automated and delivered without physical presence.
Virtual reality apps classified as OIDAR services attract 18% Integrated GST (IGST) when supplied to Indian consumers by foreign service providers.
If platforms like Meta Quest or Apple collect and remit GST on your behalf, separate registration may not be required. However, for direct sales outside such platforms, OIDAR GST registration becomes mandatory.
Foreign VR app providers must apply through Form GST REG-10 on the GST portal. The process requires service details, business documents, and appointment of an authorized Indian representative if there is no local presence.
GSTR-5A is the monthly GST return required to be filed by OIDAR service providers. It reports services supplied to Indian users and the GST paid, and must be filed by the 20th of every month.
No. OIDAR services do not enjoy any turnover threshold. Even a single sale to a non-GST registered Indian customer makes GST registration compulsory.
Yes, GSTR-5A can be filed directly on the GST portal. However, due to strict timelines and reporting requirements, many foreign startups prefer professional compliance support.
Yes. Ebizfiling can act as your authorized representative in India and manage OIDAR registration, monthly GST filings, and compliance communication with authorities.
If the Indian customer is GST registered and provides a valid GSTIN, GST is paid under the reverse charge mechanism. GST collection by the foreign provider applies only to B2C supplies.
No. OIDAR GST registration does not create income tax liability or a permanent establishment in India. It only requires compliance with indirect tax obligations unless a physical presence is established.
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