A digital business—online course creator, subscription platform, digital marketplace, SaaS—operates at the intersection of the OIDAR framework, the export zero-rating and the composite-supply classification. The digital service is taxable at 18% where the recipient is in India and the supplier is registered. The export route is available if the five Section 2(6) conditions are satisfied. The subscription bundle may be a composite supply or a mixed supply.
The OIDAR Framework
OIDAR services supplied by a foreign supplier to an Indian recipient attract GST under the OIDAR regime, with simplified registration. An Indian digital business supplying to Indian recipients charges 18% in the ordinary way. The digital business should map whether it is an OIDAR supplier, an OIDAR recipient or an ordinary supplier.
The Export Zero-Rating
A digital business serving foreign clients should obtain a LUT, issue zero-rated invoices, maintain FIRC/bank realisation evidence and claim refund of accumulated ITC. The establishment condition is critical for digital businesses billing foreign affiliates.
The Composite-Supply Classification
A subscription bundle that includes content, live sessions, community access and certificates is analysed as a composite supply if the components are naturally bundled around a principal supply. The invoice and the contract should align with the chosen characterisation.
What the Consultant Does
The consultant assists with the OIDAR mapping, the export documentation and the composite-supply analysis. The value is in the classification and documentation architecture that supports the digital business’s GST position.
Call to Action: We advise digital businesses on OIDAR, export zero-rating and composite-supply classification. For a digital-business review, contact office@anujdesaiassociates.com, Ph No. 9619456656, Website https://anujdesaiassociates.com, LinkedIn linkedin.com/in/ca-anuj-desai-122547230.