SC issues notice to center, seeking a mechanism to track GST paid by OIDAR

Supreme Court has issued notice to the center, seeking a mechanism to track GST paid by OIDAR (Online Information and Database Access or Retrieval Services) like Facebook, Amazon, Google, Twitter, others.

If Service is taken from OIDAR, by Indian Recipients, Reverse Charge is applicable in case service is provided to GST Registered Customer. In case service by OIDAR is provided to a customer not registered in GST OIDAR is supposed to collect GST and pay it to the government.

The petitioner, Pradeep Goyal has contended that the Government has no mechanism to track total GST paid on the Online Information and Database Access or Retrieval (OIDAR) services used by Non-Taxable Online Recipient (NTOR) Indian recipients under a reverse charge basis.

The petitioner has further sought directions to the Centre to have a mechanism to verify the total receipts earned by foreign online service providers from India and check GST compliance as most of the overseas service providers maintain their accounts in a foreign jurisdiction and are audited as per the local laws of the country in which they are situated.

Source: India Legal