Section 14 makes a foreign supplier of online services — streaming, cloud, apps, online advertising, digital content — pay IGST itself when it sells to Indian consumers who cannot pay on reverse charge. Without it, those sales would escape tax.
Key points
- Under section 14 of the IGST Act, 2017 a supplier located outside India who supplies online information and database access or retrieval (OIDAR) services to a non-taxable online recipient in India is liable to pay IGST.
- Since 01.10.2023 a "non-taxable online recipient" is any unregistered person receiving OIDAR services in India, including a person registered only to deduct tax at source.
- A foreign intermediary that arranges such a supply is treated as the supplier unless it meets all four conditions in the proviso to section 14(1).
- The supplier takes a single registration under the simplified registration scheme; a representative in India, or a person it appoints, registers and pays on its behalf.
The provisions
14(1)Who pays: the foreign supplier, or the intermediary
Statutory text
(1) On supply of online information and database access or retrieval services byany 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:
Provided that in the case of supply of online information and database access or retrieval 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.
14(2)Simplified registration
Statutory text
(2) The supplier of online information and database access or retrieval services referred to in sub-section (1) shall, for payment of integrated tax, take a single registration under the Simplified Registration Scheme to be notified by the Government:
Provided that 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:
Provided further that 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.
What it means
The supplier takes a single registration under the Simplified Registration Scheme (Form GST REG-10) and files a monthly return in Form GSTR-5A. If it has a representative in India for any purpose, the representative must register and pay; if it has neither physical presence nor a representative, it may appoint a person in India, who becomes liable for the tax.
Online money gaming supplied from outside India is dealt with separately in section 14A, inserted by the IGST (Amendment) Act, 2023 from 01.10.2023.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Do foreign streaming and software companies pay GST in India?
- Yes. Under section 14 of the IGST Act a foreign supplier of OIDAR services to unregistered recipients in India must register under the simplified scheme and pay IGST.
- Who is a non-taxable online recipient?
- From 01.10.2023, any unregistered person in India receiving OIDAR services, including a person registered only to deduct tax at source (section 2(16) IGST).
- When is a foreign app store or marketplace liable for GST on apps it sells?
- When it arranges the supply and does not meet all four conditions in the proviso to section 14(1) — for instance, because it collects the payment or sets the terms of supply.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Two conditions trigger the section: the supplier is located in a non-taxable territory (outside India), and the recipient is a non-taxable online recipient — after the Finance Act, 2023, any unregistered person in India receiving OIDAR services (section 2(16)). A registered business recipient is not covered; it pays IGST on reverse charge as an importer of services.
Where a foreign platform or marketplace arranges the supply, the proviso treats the intermediary as the supplier — and so as the person liable — unless all four conditions hold: its invoice or receipt identifies the service and the actual supplier; it neither authorises nor takes part in the charge (does not collect or process payment); it does not authorise delivery; and the general terms of supply are set by the supplier, not by it.
The place of supply of OIDAR services is the recipient's location (section 13(12)), with an Explanation that deems the recipient to be in India if any two of seven indicators point there — billing address, card issuing country, IP address, bank, SIM country code, address presented online, or landline.