Special provision for payment of tax by a supplier of online information and database access or retrieval services [ Section 14 of IGST ] - GST Ready Reckoner - GST

Special provision for payment of tax by a supplier of OIDAR services When supplier and recipient are both in Non-taxable territory On supply of online information and database access or retrieval (OIDAR) services by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services: Where supplier, recipient and intermediary are in Non-taxable territory Supply of OIDAR services by any person located in a non-taxable territory and received by a non- taxable online recipient, an intermediary located in the non-taxable territory, who arranges or facilitates the supply of such services, shall be deemed to be the recipient of such services from the supplier of services in non-taxable territory and supplying such services to the non-taxable online recipient except when such intermediary satisfies the following conditions, namely: (a) the invoice or customer s bill or receipt issued or made available by such intermediary taking part in the supply clearly identifies the service in question and its supplier in non-taxable territory; (b) the intermediary involved in the supply does not authorise the charge to the customer or take part in its charge which is that the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-taxable online recipient and the supplier of such services; (c) the intermediary involved in the supply does not authorise delivery; and (d) the general terms and conditions of the supply are not set by the intermediary involved in the supply but by the supplier of services. [ Section 14(1) ] Taking a Single registration for payment of Tax The supplier of online information and database access or retrieval services u/s 14(1) shall, for payment of integrated tax, take a single registration under the Simplified Registration Scheme to be notified by the Government: Representative of supplier :- Any person located in the taxable territory representing such supplier for any purpose in the taxable territory shall get registered and pay integrated tax on behalf of the supplier. Does not having a physical presence or Representative of supplier :- If such supplier does not have a physical presence or does not have a representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for the purpose of paying integrated tax and such person shall be liable for payment of such tax. [ Section 14(2) ]