Budget Proposals -2023 Series: Asking Questions and Finding Answers [Part IX]
OIDAR Services and Non-taxable online recipient [Section 2(16) and 2(17) of IGST Act]
This blog is one of a series of topic-specific FAQs concerning Budget 2023 proposals. It addresses the practical issues raised due to proposed changes.
Vivek Laddha, Manish Gupta, Pooja Patwari
FAQ 1. XYZ platform (OIDAR service provider) located outside India provides subscriptions to playmovies etc. to MrsRanu (an individual, subscribed for her own purpose) located in India. Who will have to pay the tax as per amendment?
Law Brothers’ View: In such a case, XYZ platform has to pay the IGST. There is no change in this position post amendment.
FAQ 2. XYZ platform (OIDAR service provider) located outside India provides E-books’ subscriptions to Mr.Gagan Jain for his business purpose (who is not registered under GST law, located in India). Who will have to pay the tax as per the amendment?
Law Brothers’ View: At present, the tax is required to be paid under RCM (being import of services) by Mr.Gagan Jain. Post amendment, XYZ platform will have to pay the IGST on the same. Mr.Gagan Jain is a non-taxable online recipient as per the amended definition u/s 2(16) of IGST Act.