Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
Form GST REG-10 is mandatory for foreign digital service providers (OIDAR) to register under GST in India.
All OIDAR services, such as online ads, cloud storage, gaming, and digital content, are taxable in India.
Registration is required regardless of turnover, making REG-10 different from other GST registration forms.
Foreign service providers without a presence in India must appoint a representative to handle GST compliance.
Failure to file REG-10 before starting operations may lead to monetary penalties and legal proceedings.
Are you a foreign digital service provider catering to Indian customers? Or wondering how to stay tax-compliant under the GST regime in India? Well, the answer lies in Form GST REG-10, a critical requirement for businesses offering Online Information and Database Access or Retrieval (OIDAR) services.
Since the launch of the Goods and Services Tax in 2017, India has tightened the compliance net for overseas entities providing digital services. This guide simplifies everything you need to know: what qualifies as OIDAR, why the application for registration is mandatory, how to fill out Form REG-10, and the penalties for non-compliance. Let us decode the essentials and keep your business GST-ready.
Characteristics of OIDAR Services
The Online Information and Database Access or Retrieval services (OIDAR) are offered virtually with nominal human intervention. These taxable services include:
Advertising on the internet
Data storage services
Online gaming and software downloads
Providing cloud services
Supply of digital content such as e-books, movies, music, etc.
Offering retrievable details in an electronic form via a laptop
Providing content through a telecommunication network
Being digitally deliverable, these services must be accessed remotely. Since these services are intangible, applying taxes on them requires special mechanisms under the Integrated Goods and Services Tax Act, which governs cross-border transactions under GST.
Individual Classification for Applying for GST Enrolment in Form GST REG-10
As per the tax treatment of OIDAR services, the Central Government of India levies tax on all kinds of OIDAR utilisation. It includes:
Services offered from India or outside
Services provided for business or non-business
It is crucial to know that all types of OIDAR services are subject to GST. If supplying entities do not have a physical presence in India, they still need to register under GST to comply with the tax obligations. Here are the applicants who must file GST REG-10:
Foreign Service Providers without a Physical Presence in India
These providers must appoint a representative in India who will handle tax compliance on their behalf. In such cases, the Application Reference Number generated during the application process becomes essential for future correspondence and compliance.
Foreign Service Providers with a Physical Presence in India
If a foreign OIDAR provider has an office or business location in India, it must apply for GST registration directly. They are considered a registered person and must follow all compliance procedures, including filing Goods and Services Tax Returns when applicable.
Please note: OIDAR service providers must register under GST regardless of turnover. This feature makes Form GST REG-10 different from other GST forms that apply only after a certain threshold.
Form GST REG-10 is comparatively simpler than the other GST forms. Usually, the applicants classify the form into 2 sections: part A and part B. Here’s a detail:
Details to be provided in part A:
Legal name of the person
Unique Tax Identification Number
Name and email ID of the authorised signatory
Name, PAN number, and contact details of the representative
Details to be provided in part B:
Details of authorised signatory
Date of initiating online services in India
Website or Uniform Resource Locators
Type of services provided
Bank account details in India
One must file the form online through the GST portal and upload scanned copies of supporting documents, such as:
Passport and VISA details for non-resident taxpayers
The company’s certificate of incorporation
Business licence
Clearance certificate provided by the Government of India
For those who become a registered person under GST, provisions related to Input Tax Credit and filing returns such as GSTR 10, especially at the time of cancellation, will also be applicable.
GST REG-10 Penalty Over Due Date
According to GST rules, foreign service providers must file the GST REG-10 form before starting their business operations in India. If they fail to do so, then the consequences may involve:
Monetary penalties: A particular amount of monetary penalty will be imposed.
Legal proceedings: Non-compliance may attract further legal actions and suspension of services in India, possibly resulting in a cancellation order of GST registration.
Conclusion
Form GST REG-10 plays a vital role in bringing foreign digital service providers under the GST ecosystem in India. With the rise of digital consumption, imposing taxes on digital content has become crucial. If you are an OIDAR provider, make sure to file Form GST REG-10 correctly and on time to avoid consequences.
Being compliant from the start not only avoids penalties but also facilitates smoother business operations, including eligibility for Input Tax Credit and timely filing of Goods and Services Tax Returns.
💡If you want to streamline your payment and make GST payments via credit card, consider using the PICE App. Explore the PICE App today and take your business to new heights.
FAQs
What is Form GST REG-10 under GST?
Form GST REG-10 is an application form required by foreign digital service providers offering Online Information and Database Access or Retrieval (OIDAR) services in India. It enables overseas entities to legally register under GST, even if they don’t have a physical presence in India. This ensures compliance with Indian tax laws and allows smooth business operations with Indian customers.
Who needs to file Form GST REG-10?
All foreign service providers supplying OIDAR services to Indian customers must file GST REG-10. This applies to providers with or without a physical presence in India. If there is no office in India, the foreign entity must appoint a representative in India to handle GST compliance. Registration is mandatory regardless of turnover, unlike other GST forms.
What services are covered under OIDAR for GST REG-10?
OIDAR services include digital advertising, cloud storage, online gaming, data storage, e-books, movies, music downloads, and software access. These services are supplied online with minimal human intervention and are consumed electronically in India. Since these are intangible cross-border supplies, the GST law mandates providers to register via Form GST REG-10 before offering services.
How can foreign service providers file GST REG-10?
To file GST REG-10, the provider must visit the GST portal, fill in details like legal name, authorized signatory, PAN, services provided, and bank account details. Supporting documents such as certificate of incorporation, passport, visa, business license, and address proof must be uploaded. After submission, the authorities scrutinize the application and issue a GST registration certificate for compliance.
What happens if a provider fails to file Form GST REG-10?
If a foreign OIDAR service provider fails to file GST REG-10 before starting business in India, it attracts monetary penalties and possible legal action. Non-compliance may also lead to suspension of services and cancellation of GST registration. Filing the form on time not only avoids penalties but also ensures eligibility for Input Tax Credit and smooth GST return filing in India.
Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
0
Instant Transfer
Lowest Rates
Credit on all transaction