- DGGI has noticed entities like online casinos appear to intentionally avoid tax compliance by operating through off-shore VPNs and cloud-based platforms.
- GST investigation arm DGGI has suggested reciprocal arrangements with foreign governments to block websites to prevent tax evasion in OIDAR services like e-gaming and online education.
- Online Information and Database Access or Retrieval (OIDAR) services are those that are delivered over the Internet.
- Hundreds of off-shore entities providing OIDAR services have registered with the GST department so far. There is an 18% GST rate for OIDAR services.
| Both the following conditions must be satisfied to be OIDAR (Online Information and Database Access or Retrieval): Delivery is mediated through the Internet. The supply is impossible without information technology. (Budget 2023 removed the words ‘essentially automated involving minimal human intervention and’. However, CBIC has yet to notify this change) |
Dig Deeper: Read about the GST Council of India.
