GST Registration for Foreigners

The word ‘Non-resident taxable person’- has been defined under the Goods and Services Tax Act 2017, as an individual who occasionally do any transactions involving any supply of goods or services, or both, whether as a principal or as an agent and that person do not have any fixed  fixed place of Business in India.

If you’re planning to supply goods or services to India, securing a GST registration is not just a compliance measure but a key step in establishing your business presence in one of the world’s most vibrant markets.

Recognizing the importance of this registration, DisyTax offers specialized services to facilitate the GST registration process for foreigners. With expert guidance and streamlined procedures, we simplify the complexities of tax compliance, making it easier for international businesses to thrive in India.

Contact DisyTax today to easily get your GST registration. We’ll guide you smoothly through each step for a worry-free process.

Who is a ‘Non- Resident Taxable Person?

Non-resident taxable person as any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

Section 24 of the GST law further specifies the requirement for registration for a non-resident taxable person. It mentions certain businesses and entities which are mandatorily required to register under Goods and Services Tax and are not governed by the minimum threshold limit of Rs. 20 lakh/ 10 lakh. Thus, irrespective of whether the business is involved in a one-time transaction or frequent taxable transactions, every non-resident individual or company will have to obtain a registration under the Goods and Services Tax

GST Registration for Non-Resident Taxable Person

GST Registration in India is a compulsory process for foreign individuals or entities that supply goods or services in India without a permanent establishment or residence in the country. This registration category is specifically designed for those who may not regularly operate in India but engage in economic activities or transactions under the GST Act.

The process involves obtaining a unique GSTIN (Goods and Services Tax Identification Number), which allows these non-resident businesses to comply with GST laws, including filing GST tax returns and paying applicable taxes on their transactions within India.

GST Registration Requirements for Non- resident Taxable Persons

For non resident taxable persons engaging in taxable transactions within India, the GST registration requirements are as follows:

• Mandatory Registration:

  Regardless of transaction volume, registration under GST is compulsory for non-resident taxable persons. There’s no minimum threshold for registration.
  
  

• Ineligibility for Composition Levy:

  Non-resident taxable persons are not eligible to opt for the composition levy scheme under GST, which allows for a simplified tax payment process and compliance for small taxpayers.
  
  

• Advance Registration Requirement:

  Registration for GST must be completed at least five days before beginning business operations in India.
  
  

• Passport Required for Registration:

  A valid passport is required for GST registration and serves as the primary documentary evidence.
  
  

• Documentation for Business Entities:

  Business entities based outside India must include their tax identification number (TIN) or a unique identification number recognized by their home country’s government in their GST registration application. Alternatively, if available, they can provide their Indian Permanent Account Number (PAN).
  
  
  

Documents Required for GST Registration for Non- resident Taxable Persons.

For foreigners GST registration, the following documents are typically required:

Documents Required For GST Registration for Foreign company

• PAN Card of Company Applicant’s unique number as identified by the Government.
• Incorporation Certificate provided by the Foreign Government
• Promoters Passport Size Photo
• Relevant identity and address proof of the promoter with photographs
• Proof of Address of the business for own, rented or other scenarios.
• Bank Statement / Scanned copy of passbook/cancelled cheque containing business entity’s name

Authorized Signatory and Compliance Details for Non-Resident GST Registration

• For a Non-Resident Taxable Person to register under the GST framework, certain prerequisites must be met to ensure compliance and validation on the GST Portal:
• The presence of an authorized signatory within India, equipped with complete and valid details, is mandatory.
• This authorized signatory must possess a valid Permanent Account Number (PAN) to ensure legitimacy and traceability.
• The authorized signatory must be reachable via a valid Indian mobile number for direct communications or verifications.
• A valid email address is required for the authorized signatory to facilitate electronic correspondence and official notifications.
• The applicant should hold a valid identification such as a Permanent Account Number (PAN), Passport Number, Tax Identification Number (TIN), or any unique identifier issued by the government of their home country.

All prescribed documents must be furnished, and mandatory fields in the registration application must be filled to meet the GST registration criteria.

Finally, the applicant must have a designated place of business within the state for which the registration is sought, covering the duration of their registration period.

Validity of NRI GST Registration

The NRI GST registration is valid for the period specified in the application or 90 days from the effective date of registration, whichever is earlier.

Procedure for GST Registration for NRIs

The GST registration has two main phases: Provisional Registration and Final Registration. Each phase entails specific steps to ensure compliance with the GST regulations in India.

Provisional GST registration for NRI:

Provisional registration under GST for non-resident taxable persons is a temporary GST registration granted before obtaining the final GST registration. This provisional status allows non-resident individuals or business entities to start their business activities in India in compliance with the GST laws without having to wait for the completion of the full registration process.

• GST Registration Application Form for Foreigners:

   NRIs must initiate their GST registration process by filling out Form GST REG-09. This form is specifically designed for non-resident taxable persons and differs from the forms used by resident taxpayers.
  
  

• Electronic Submission of the Application:

  The GST REG-09 form must be submitted online through the official GST portal. A self-attested copy of the NRI’s valid passport must also be uploaded as proof of identity and nationality.
  
  

• Authentication of the Application:

  The filled application form must be authenticated by the applicant’s Digital signature (DSC) or an Electronic Verification Code (EVC).
  
  

• Timely Submission Before Business Commencement:

   The application must be submitted at least 5 days before the plan to start a business activities in India. This timeframe allows for the registration to be processed and approved before business operations begin.
  
  

• Additional documents  Required:

  Additional documentation is required if the applicant operates through a business entity incorporated outside India. This includes the business entity’s tax identification number or a unique identifier recognized by the government of the entity’s home country.

• Alternatively, the entity’s Indian Permanent Account Number (PAN) can be provided if it is available.

• Designation of an Authorized Signatory:

   The GST application must be signed by an authorized signatory resident of India with a valid PAN. This individual acts on behalf of the NRI for GST compliance purposes.
  
  

• Verification and Temporary Reference Number (TRN):

   The GST portal will issue a temporary reference number after successfully verifying the provided PAN, mobile number, and email address. This number is crucial for the next step, which involves making an advance tax deposit.
  
  

• Advance Tax Deposit:

  Before the registration certificate is issued, the NRI is required to make an advance tax deposit equivalent to the estimated tax liability for the duration for which registration is sought. This deposit is reflected in the NRI’s electronic cash ledger on the GST portal.
  
  

Final GST registration for NRI:

Final registration under GST for non-resident taxable persons strengthen their tax obligations and compliance status within India, transitioning from a provisional to a permanent GST registration. This process ensures that non-residents engaging in taxable business transactions within Indian territory are fully integrated into the GST system.

• Application for Final Registration:

  To convert the provisional registration into a final one, the NRI must submit an application electronically using FORM GST REG–26. This step is similar to the procedure followed by resident taxpayers.
  
  

• Information Furnishing:

  Required information must be furnished within 3 months of applying for final registration. This is crucial for validating the provisional registration.
  
  

• Verification and Approval:

   If the submitted information is correct and complete, the final GST registration is granted, and FORM GST REG-06 is issued to the applicant.
  
  

• Discrepancies and Show-Cause Notice (SCN):

  In cases where the information provided is found to be incorrect or incomplete, a show cause notice (SCN) using FORM GST REG-27 may be issued. A reasonable opportunity of being heard is granted to the applicant.
  
  

• Cancellation of provisional registration:

  If the authorities are not satisfied with the information provided in response of show cause notice, the provisional registration may be cancelled using FORM GST REG-28.

• Conversely, if the applicant’s response satisfactorily addresses the concerns, an order is issued via FORM GST REG-20, leads to final registration.

• Authorized Signatory:

  All applications made by NRIs must be signed by an authorized signatory who is a resident of India and possesses a valid PAN. This individual acts on behalf of the NRI for GST compliance purposes.
  
  

• Commencement of Taxable Supplies:

  With the registration certificate, the NRI is now authorized to start making taxable supplies in India, adhering to the GST Act.

DisyTax  can guide you through obtaining GST registration for NRIs.

Extension of GST Registration Validity

Suppose the NRI wishes to extend the registration beyond the actual time period approved (up to 90 days or the period specified in the application). In that case, they must file an extension application using Form GST REG-11 before the current registration expires.

• This extension also requires an additional advance tax deposit for the extended period.
• This detailed procedure ensures that NRIs are well-informed and prepared to meet all regulatory requirements for conducting taxable transactions in India under the GST Act.
  
  

Input Tax Credit for Non Resident Indian (NRI) GST

Under the CGST Act, a non-resident taxable personwho has registered under section 25 is not eligible to claim Input Tax Credit (ITC) on goods or services, except for goods imported by them. However, the taxes paid by a non-resident taxable person can be utilized as a credit by the respective recipients.

GST Returns Filings for Foreigners

A non-resident taxable person must electronically submit a GST return using FORM GSTR-5.Which includes total outward and inward supply details, must be filed. Any due tax, interest, penalty, fees, or other charges under the Act or regulations must be paid within 30 days following the end of a calendar month or 7 days after the registration validity period expires, whichever comes first.

Refund of Advance Tax paid by NRI under GST

The advance tax paid by a non-resident taxable person will be eligible for a refund only if all GST return filed for the duration when their registration certificate was valid. The application for a refund can be made in section 13 of FORM GSTR-5.

DisyTax Assistance for GST Registration for Foreigners

DisyTax can provide significant support and expertise in facilitating GST registration, ensuring a smooth and compliant entry into the Indian market. Here’s how we can help:

• Expert Guidance: DisyTax offers access to a team of experts knowledgeable in GST regulations, including specific provisions applicable to NRIs. We can provide tailored advice based on your business’s unique needs.
• Streamlined Application Process: Our experts have a deep understanding of the GST registration process. They can streamline your application, ensuring all the required documentation is accurate and submitted correctly.
• Authorized Signatory Support: We can assist in fulfilling the requirement for an authorized signatory in India, guiding you through appointing someone and ensuring they have the valid necessary documentation.
• Timely Submissions: Understanding the importance of deadlines, DisyTax can help ensure that your GST registration application is submitted within the stipulated time period, avoiding unnecessary delays.
• Ongoing Support: Beyond the initial registration, DisyTax can provide support for ongoing GST compliance, including filing GST returns, maintaining records, and updating registration details as and when required.

Recognizing that every business is unique, we offer customized solutions that cater to the specific needs of NRIs looking to do business in India, ensuring that the advice and support provided are as relevant and effective as possible.

Ready to streamline GST registration for foreigners? Connect with DisyTax today!

Frequently Asked Questions (FAQs)

Are there any preconditions before I can apply for Registration as a Non-Resident Taxable Person?

A Non-Resident Taxable Person must fulfill following conditions so that he/she can register on the GST Portal:

1. Applicant has authorized signatory in India with valid details
2. Authorized Signatory has valid Permanent Account Number (PAN)
3. Authorized Signatory has a valid Indian mobile number
4. Authorized Signatory has valid E-mail Address
5. Applicant has Permanent Account Number (PAN)/ Passport Number / Tax Identification Number (TIN) or unique number on the basis of which the entity is identified by the Government of that country
6. Applicant has the prescribed documents and information on all mandatory fields as required for registration
7. Applicant has identified a place of business in that State for the period of registration.

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 I am a Non-Resident Taxable Person. What is the process to obtain a GST Registration for a Non-Resident Taxable Person?

As a Non-Resident Taxable Person, you must fill Part A of the Registration Form, which consists of:

• Legal Name of the Non-Resident Taxable Person
• Permanent Account Number (PAN) of the Non-Resident Taxable Person/ Passport Number of the Non-Resident Taxable Person/ Tax Identification Number (TIN) or unique number on the basis of which the entity is identified by the Government of that country
• Name of the Authorized Signatory (as per PAN)
• PAN of Authorised Signatory
• Email Address of Authorised Signatory
• Indian Mobile Number of Authorised Signatory.

Do I need a PAN to obtain registration as a Non-Resident Taxable Person?

No, PAN is not mandatory for obtaining registration as a Non-Resident Taxable Person. You need any one of the following three:

• Permanent Account Number (PAN) of the Non-Resident Taxable Person OR
• Passport Number of the Non-Resident Taxable Person OR
• Tax Identification Number (TIN) or unique number on the basis of which the entity is identified by the Government of that country

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However, you must have an authorised signatory who is a resident of India with a valid PAN and give its details in Part A of the application.

How long is the Registration as a Non-Resident Taxable Person valid? Can I extend my Registration as a Non-Resident Taxable Person?

The certificate of registration issued to a Non Resident taxable person is valid for the period specified in the application for Registration or 90 days from the effective date of registration, whichever is earlier.

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You can extend your Registration as a Non-Resident Taxable Person once, for an additional period of 90 days, if you apply for extension of registration before the expiry of the initial period of registration granted to you.

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Who needs to register under GST in India?

Any foreign individual or entity supplying goods or services in India without a permanent establishment or residence must register under GST.

What is a Non-Resident Taxable Person?

A Non-Resident Taxable Person is an entity conducting transactions in India without a fixed place of business or residence within the country.

Is GST registration mandatory for non-residents?

Yes, GST registration is compulsory for non-resident taxable persons, irrespective of their transaction volume

Can non-resident taxable persons opt for composition levy?

No, non-resident taxable persons are not eligible for the composition levy scheme under GST.

How soon should GST registration be done?

GST registration must be completed at least five days before commencing business operations in India.

What documents are required for GST registration?

Documents include proof of authorized signatory, proof of principal place of business, and proof of details of bank accounts, among others.

What is the validity period of NRI GST registration?

The registration is valid for the specified period in the application or ninety days from the effective date, whichever is earlier.

What are the phases of GST registration for NRIs?

The process includes provisional registration and final registration.

Which form is used for provisional GST registration?

Form GST REG-09 is used for provisional registration by NRIs.

How is the GST registration application submitted?

The application is submitted electronically through the official GST portal along with a self-attested copy of the applicant’s valid passport.

What is the significance of the advance tax deposit?

An advance tax deposit equivalent to the estimated tax liability must be made before the registration certificate is issued, ensuring compliance.

How is final registration under GST obtained?

Final registration is obtained by submitting Form GST REG–26 electronically with the necessary information furnished within three months.

What happens if there are discrepancies in the application?

Discrepancies may lead to a show-cause notice, and the applicant will be given an opportunity to rectify.

Who can act as the authorized signatory for NRIs?

An authorized signatory must be a resident of India with a valid PAN, acting on behalf of the NRI for GST compliance.

What is the procedure for extending GST registration validity?

An extension application using Form GST REG-11 must be filed before the current registration expires, along with an additional advance tax deposit.

Are non-resident taxable persons eligible for input tax credit?

Non-resident taxable persons cannot claim input tax credit except for directly imported goods; however, the taxes paid can be utilized as a credit by the recipients.

How are GST returns filed by non-residents?

Non-residents must electronically submit GST returns using Form GSTR-5, including details of outward and inward supplies, and pay applicable taxes within the stipulated timeframe.

When can a refund of advance tax be claimed?

Refund of advance tax is eligible after submitting all necessary returns for the duration of registration validity, with the application made in Section 13 of Form GSTR-5.

What support does DisyTax offer for NRI GST registration?

DisyTax provides expert guidance, streamlined application processes, assistance with authorized signatories, timely submissions, and ongoing support for GST compliance.

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