GST on SaaS, Apps and Online Courses Sold to India (Foreign Sellers, 2026)
What changed — 1 amendment
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Initial publication.
How OIDAR GST applies to foreign SaaS, apps/in-app purchases and online courses sold to India — 18% IGST from the first sale, plus the app-store nuance.
If you’re a foreign business selling SaaS, a mobile app, in-app purchases, or online courses to Indian customers, India’s OIDAR rules almost certainly apply: sell to an unregistered Indian customer and you must register for GST and charge 18% IGST from your first sale — no threshold. Below, the nuances per product type.
SaaS / cloud subscriptions
SaaS is the textbook OIDAR service. Selling subscriptions to Indian consumers or unregistered businesses means register (REG-10) → charge 18% IGST → file GSTR-5A monthly. Selling only to GST-registered Indian businesses (who give a GSTIN) is reverse charge — they account for the tax, you don’t register. Capture GSTINs at checkout to split the two automatically.
The old “our platform needs manual setup, so it isn’t automated” argument no longer works — the “minimal human intervention” test was deleted on 1 October 2023.
Apps, in-app purchases, games
For your own direct sales (your site, your web checkout), the OIDAR obligation is yours. For sales through an app marketplace (Apple App Store, Google Play), who accounts for Indian GST depends on the store’s operating model — a marketplace can be treated as an electronic-commerce operator that handles the tax, or the developer may remain responsible for Indian-user sales. Check your store’s India tax documentation, and treat any direct-sold channel as your own OIDAR responsibility.
Online courses / e-learning
Pre-recorded courses, certifications and content portals are OIDAR. Crucially, courses with live elements (Zoom Q&A, cohort sessions) are still OIDAR post-October-2023 — the human-involvement exemption is gone. Sales to Indian learners (unregistered) carry 18% IGST.
E-books, streaming, digital content
Same treatment — downloadable or access-based digital content sold to unregistered Indian consumers is OIDAR and attracts 18% IGST.
The common thread
Whatever the format, the test is the same: delivered over the internet + sold to an unregistered Indian customer = OIDAR, 18% IGST, from the first sale. Register via REG-10, charge it on B2C, and file GSTR-5A monthly. For the mechanics, see the OIDAR guide or check your position with the Do I need GST in India? tool.
General information as of June 2026, not tax advice. App-store tax treatment varies — confirm with your marketplace’s India documentation.
Frequently asked questions
Does a foreign SaaS company need GST registration to sell in India?
Yes, if it sells to unregistered Indian customers. SaaS is squarely an OIDAR service, so a foreign SaaS company selling to Indian consumers must register for Indian GST and charge 18% IGST from the first sale, with no turnover threshold. Sales only to GST-registered Indian businesses are reverse charge and don't require registration.
I sell my app through the Apple App Store / Google Play. Who handles Indian GST?
It depends on the store's operating model and how they treat Indian tax. In some flows the app marketplace, as an electronic-commerce operator, accounts for the GST; in others the developer is responsible for sales to Indian users. Confirm with your store's tax documentation for India. Where you sell directly (your own checkout, web subscriptions), the OIDAR obligation is yours: register and charge 18% IGST to unregistered Indian buyers.
Are online courses with live sessions still OIDAR?
Yes. Since 1 October 2023 the 'minimal human intervention' carve-out was removed, so online courses — including those with some live Q&A or instructor interaction — are OIDAR when delivered to Indian consumers, and attract 18% IGST.