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Updated June 2026

GST on Digital Products & Online Courses in India

Digital products fall under India’s Online Information and Database Access or Retrieval (OIDAR) services framework, with specific rules for both domestic and overseas suppliers.

Last updated: June 2026

Domestic sales to consumers
18% GST
once you cross ₹20 lakh
Overseas OIDAR suppliers to India
GST registration required
regardless of threshold, since 2023 reforms
B2B sales
Recipient may self-assess
under reverse charge in some cases

Digital products sold by Indian businesses

If you’re an India-based business selling ebooks, software, apps, or online courses to Indian consumers, standard GST rules apply: once your aggregate turnover exceeds ₹20 lakh, you charge 18% GST on those sales like any other taxable supply of services.

OIDAR services and overseas suppliers

India’s GST law has specific provisions for OIDAR (Online Information and Database Access or Retrieval) services — a category covering digital content, software, and similar automated online services. Overseas suppliers providing OIDAR services to non-taxable Indian consumers are generally required to register for GST in India and charge GST directly, regardless of the usual registration threshold, following reforms that removed earlier intermediary-based exemptions for cross-border digital supplies.

Selling digital products to Indian businesses (B2B)

If your customer is a GST-registered Indian business, the sale may be treated differently, with the business potentially self-assessing GST under reverse charge provisions in certain cross-border scenarios — always obtain and verify the customer’s GSTIN before treating a sale as B2B.

Frequently asked questions

Do I need to register for GST in India if I’m based overseas selling digital products?

Often yes, under the OIDAR framework, if you’re supplying digital services to non-taxable Indian consumers — this applies regardless of the usual turnover threshold for overseas OIDAR suppliers.

What counts as an OIDAR service?

Broadly, digital content and services delivered over the internet with minimal human intervention — software, apps, ebooks, streaming, and online courses fall within this category under Indian GST law.

Does the platform (Udemy, app stores) handle GST for me?

Often yes for larger marketplaces, which may act as the registered intermediary or supplier under specific platform provisions. Check your specific platform’s terms and tax documentation.

Do I charge GST on sales to Indian businesses?

If the business provides a valid GSTIN, the sale may be treated differently under B2B rules, potentially with reverse charge applying in cross-border scenarios — verify their registration status first.

Is there a threshold exemption for overseas OIDAR suppliers?

Generally no meaningful threshold exemption applies to overseas OIDAR suppliers selling to Indian consumers — registration is typically required from the first taxable supply under current provisions.

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General guidance only. OIDAR and digital services GST rules are specific and have changed with recent reforms. Always verify with the GST portal or consult a qualified accountant before making decisions.

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