INDIA OIDAR / GST · STANDARD RATE GST slabs: 40%, 28%, 18%, 5%, 3%, 0.25%, 0% (18% is the most commonly-applied rate for services)
India VAT Guide for Nonresident SaaS and E-commerce
A practical guide for US SaaS and e-commerce companies selling into India. Rates, registration thresholds, filing deadlines and e-invoicing status, pulled from the same data that powers our free tools.
India at a glance
Standard rate
GST slabs: 40%, 28%, 18%, 5%, 3%, 0.25%, 0% (18% is the most commonly-applied rate for services)
Zero. All foreign suppliers of OIDAR services to Indian consumers must register for GST, regardless of turnover.
Filing frequency
Monthly or Quarterly
Do I need to register for VAT in India?
India taxes B2C cross-border digital services as OIDAR (Online Information Database Access and Retrieval) at the standard 18% IGST rate. There is no threshold: every foreign supplier of OIDAR services to Indian consumers must register through the GST portal. The DGGI has been increasingly active in enforcement against US SaaS companies since 2024.
B2C OIDAR services (SaaS, streaming, online ads, cloud storage, e-learning): register for GST from the first sale to an Indian consumer. Charge 18% IGST on the supply value.
B2B OIDAR services to a GST-registered Indian buyer: reverse charge under section 14 of the IGST Act. The buyer self-assesses; you do not collect GST. Capture and verify the buyer's GSTIN.
OIDAR scope is broad. Hosting, online ads, e-books, music, software downloads, cloud services, online learning, online data retrieval are all included. The few carve-outs (mostly free user-generated content) are narrow.
Goods imports: separate from OIDAR. Customs duty and IGST apply at the border, typically handled by the importer of record.
How to register
OIDAR registration runs through the GST portal. There is no requirement for an Indian-resident agent, but most US sellers appoint a local accountant for monthly GSTR-5A filings (which must be in INR with Indian-format dates).
What you'll need: US tax ID (EIN), passport-sized photo of an authorised signatory, proof of business registration, expected Indian turnover, INR-denominated bank account (or NRO/NRE) for refunds.
Typical timeline: 10 to 30 days from a complete application. Many applications are returned for clarification on the OIDAR scope of supplies.
Cost: Registration is free. Plan for INR 50,000 to INR 200,000 per year for an Indian accounting firm to handle monthly GSTR-5A filings.
Filing and deadlines
OIDAR returns (Form GSTR-5A) are filed monthly through the GST portal, due by the 20th of the month following the tax period. There is no OSS overlap.
Local India filing frequency: Monthly or Quarterly.
Return due: 20th of following month.
Payment due: Same as return.
E-invoicing status in India
Status
Mandatory (above threshold)
Format
GST e-invoice JSON via Invoice Registration Portal (IRP)
Model
Pre-clearance (IRN + QR)
Scope
B2G + B2B (taxpayers >₹5cr aggregate turnover)
Go-live
Phased since 2020-10-01; current threshold ₹5cr from 2023-08-01
IRP issues Invoice Reference Number (IRN) and QR code; B2C invoicing remains outside the mandate.
Common mistakes US SaaS makes in India
Assuming the regular INR 20 lakh threshold applies. It does not for OIDAR. Foreign B2C digital-service suppliers must register from the first Indian consumer sale.
Treating B2B and B2C the same. Reverse charge applies on B2B; you must capture the buyer's GSTIN and confirm registration. Without a valid GSTIN, the sale is treated as B2C and you owe 18% IGST.
Underestimating DGGI enforcement. The Directorate General of GST Intelligence has been active against unregistered foreign SaaS providers since 2024, with backdated assessments going several years.
Missing monthly filings. OIDAR uses GSTR-5A, due monthly by the 20th. Late returns trigger interest at 18% per year plus penalties.
Trusting Stripe India / Razorpay to remit. Indian payment processors collect TDS but not GST. OIDAR registration and remittance is still your obligation.
Not sure if you've crossed the India threshold?
Run a free exposure check across India and the major APAC and EU jurisdictions. Upload a CSV or sync Stripe; we'll show every country where you're already over the line.
The standard VAT rate in India is GST slabs: 40%, 28%, 18%, 5%, 3%, 0.25%, 0% (18% is the most commonly-applied rate for services). Reduced rates apply at N/A.
Do US SaaS companies need to register for Indian GST?
Yes, from the first B2C sale to an Indian consumer. India's OIDAR rules require registration regardless of turnover. B2B sales to GST-registered Indian buyers are reverse-charged.
What is the Indian GST registration threshold for nonresident OIDAR suppliers?
Zero. The standard GST threshold (INR 20 lakh / 2M) does not apply to OIDAR; foreign suppliers must register from the first sale to a non-business Indian consumer.
How often do I file VAT returns for India sales?
OIDAR returns (GSTR-5A) are filed monthly through the GST portal, by the 20th of the following month. The data sources show the local Indian filing frequency as: Monthly or Quarterly.
Is e-invoicing mandatory in India?
E-invoicing status in India: Mandatory (above threshold). Format: GST e-invoice JSON via Invoice Registration Portal (IRP).
Can I use the EU One Stop Shop (OSS) for Indian GST?
No. India is not part of any EU scheme. Indian GST is filed under OIDAR directly through the GST portal.