Nearly 50 more offshore firms register for GST
In the recent months, around 40-50 more offshore entities have got themselves registered with the GST authorities, after an investigation revealed them not paying taxes on Online Information and Database Access or Retrieval (OIDAR) supplies, official sources said.
The new registrations may lead to an increase in GST revenue to the tune of a few hundred crores, the sources said.
OIDAR 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. Examples include online advertising, cloud services, e-books, movie, music, digital data storage, and online gaming are all part of the OIDAR.
“The Directorate General of GST Intelligence (DGGI) has been making continuous efforts to make off-shore entities (who provide OIDAR services) aware of India’s domestic taxation laws, so that they pay the required tax amount,” an official said. “In several cases, we find that such entities are genuinely unaware of the law…so they take registration and pay tax.”
