GST registration for NRIs is a must if the Non-resident taxable person is making taxable supply in India. India is considered to be an emerging economic powerhouse. India attracts a lot of non-residents for business purposes. Under GST, a non-resident taxable person has to apply for GST registration if he undertakes transactions involving the supply of goods or services or both.
Hence, an individual staying abroad or foreign business or organization supplying goods or services to India would be a non-resident taxable person who requires compliance with all regulations Under the Goods and Service law Act.
Goods and Service Tax Law has improved the ease of doing business. The tax complexities have reduced as GST has subsumed multiple taxes into a single, simple system.
GST registration is mandatory once the entity crosses a minimum threshold turnover. GST registration mandates all the entities involved in buying or selling goods and services, or both need to register and obtain GSTIN.
This article will clear your doubts regarding the process for GST registration in India.
Irrespective of his or her turnover, a non-resident taxable person is required to GST registration in India.
It should also be noted that the GST act and Rules specify that all non-resident taxable persons must obtain the GST registration five days before commencing with the business activities.
It is better if the foreign business supplying goods and services gets GST registration at the earliest. An NRI cannot exercise the option to pay taxes under the composition scheme.
Also, a business entity that is incorporated or established outside India has to apply for GST registration and his Tax identification number based on which it is identified by the Government of that country or The PAN if available.
The applicant must submit Form GST REG-09to apply for GST registration in India.
To apply for GST registration, foreign businesses or applicants must identify a person in India to act as its authorized representative for GST compliance and obtain PAN (optional).
The goods and service tax law states that any GST application should be made by a non-resident taxable person should be signed by his authorized signatory, who shall be a person residing in India having a valid PAN.
After the authorized signatory is engaged, GST registration can be processed for the NRIs. For regular taxpayers, GST registration is based on the PAN. In contrast, the Non-resident taxable person needs to submit his Tax Identification Number or Unique Number based on which the entity is identified by the Government of that country or its PAN.
GST registration for a non-resident taxable person requires the submission of the following documents.
Scanned copy of the passport of the Non-resident taxable person with VISA details. In case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number based on which the entity is identified by the Government of that country or its PAN if available.
Scanned copy of the first page of the Bank passbook/ one page of bank statement, the opening page of the bank passbook held in the business name- that contains the Account number, name of the account holder, MICR, IFSC, and branch details.
Non-resident Taxable person and the casual taxable person under GST must hand over a certain amount as a GST registration deposit.
The amount of the GST registration deposit would be equal to the expected tax liability during the validity of the registration. If a non-resident taxable person requests for extension, then the tax must be paid in advance based on the expected tax liability of the extension period. Click here to know more about deposits for GST registration.
After filing the GST registration is filed by an NRI, an application reference number would be generated to pay advance tax.
On the tax payment, the taxpayer's electronic cash ledger is credited, and the certification is provided.
GST registration for foreigners and the casual taxable person has a validity period. The validity period is based on the taxable person's request, and the amount of the GST deposit remitted.
If the Non-resident taxable person wants to extend the validity period of GST registration, an application can be made in the Form GST REG-11 before the validity.
A Non-resident taxable person is required to appoint an authorized representative in India. An authorization or copy of Resolution of the Managing Committee or Board of Directors authorizing the authorized representative must be provided in the following format:
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A non resident taxable person who carries on business ocassional can register under GST.
Casual taxable persons and non resident taxable persons are required to register under GST before commencing business.
Aggregate turnover is the aggregate value of all the taxable supplies, exempt supplies, export of goods or services or both of a person who has a valid PAN.
An individual who performs action on the GST portal on the behalf of the taxpayer is the primary authorized signatory.
It can be the promoter of business or any person who is nominated by the promoters of business.
Any entity wishing to claim input tax credit can register voluntarily, even if not liable to be registered.
After registration voluntarily registered entitites will also have to comply with regulations as applicable to a normal taxable person.
PAN is mandatory for normal taxapayers and casual taxable persons who are registered under GST.
However, PAN is not mandatory for a nonresident taxable person for obtaining registration
An entity operating in multiple states will have to get registered separately for each of the states from where the taxable supply of goods and services is made.
There is a migration procedure mentioned for transfering the existence service tax or VAT or central excise to GST.
Entities registered under old tax laws must complete GST migration mandatorily to obtain GST.
The GST certificate is valid until it is surrendered or cancelled or suspended.
Only, GST certificate issued to non resident taxable person and casual taxable person have a validity period.
GST certificate is provided by the government in a soft copy format. After the GSTIN is allotted the GST certificate can be downloaded from the GST portal at anytime by the taxpayer.
Businesses or entities that supply goods or services must register for GST from every state from where taxable supply of both goods and services is made
Once the GST application is submitted the GSTIN is allotted within 7 working days.
Last updated: Feb 25, 2021