It is a category of services provided through the medium of internet and received by the recipient online without having any physical interface with the supplier of such services.
OIDAR is required to mitigate unfair tax advantage to Overseas suppliers as now
The supplier (or intermediary) of online information and database access or retrieval services shall, for payment of integrated tax, take a single registration under the Simplified Registration Scheme in Form GST REG-10. The supplier shall take registration at Principal Commissioner of Central Tax, Bengaluru West who has been the designated for grant registration in such cases.
In case there is a person in the taxable territory (India) representing such overseas supplier in the taxable territory for any purpose, such person (representative in India) shall get registered and pay integrated tax on behalf of the supplier:
In case the overseas 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.
Supplier of services located outside India:
Supplier of services is in India: Supplier is liable for pay tax.
Every registered person providing online information and data base access or retrieval services from a place outside India to a person in India (It may be noted that if OIDAR services provided from India then normal return GSTR-1, GSTR 3B is to be filed) other than a registered person shall file return in FORM GSTR-5A on or before the twentieth day of the month succeeding the calendar month or part thereof.