v) Services of supply by person in non-taxable territory –
Section 14 of IGST Act makes special provision for payment of tax by supplier of online database access and retrieval services (OIDAR). It provides that if the supplier of service is located in non-taxable territory and received by non-taxable online recipient, the primary responsibility for payment of tax shall be on the supplier of service. However, if he supplies the services through intermediary or he has any person representing him in a taxable territory or he appoints any person as his representative, then he will not be liable for payment of GST. But, the intermediary or such representative shall be deemed to be receiving such service from a supplier in non-taxable territory.
Section 2(16) of the IGST Act defines non-taxable online recipient as Government, Local authority, Governmental authority, Individual and any person non registered under the GST Act and receiving service in relation to any purpose other than commerce, industry or any other business or profession located in taxable territory.