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What is GST registration for foreigners?

GST registration for foreigners is necessary for the non-resident taxable persons who are making taxable supplies in India. With India emerging as an economic powerhouse, a lot of non-resident Indias are willing to set up business in India. Hence, a non-resident taxable person has to apply for GST registration if he is undertaking transactions involving the supply of goods or services or both.

Hence, an individual who is staying abroad or a foreign business or an organization that is supplying foods or services in India is considered as a Non-resident taxable person who has to comply with all the regulations under the Goods and Service Law Act. The non-resident taxable person must appoint a nominee in India who can undertake the compliances on their behalf in accordance with the GST regulations. GST registration by the foreigners is to be obtained 5 days before commencing with the business.

Why GST registration?

The Goods and Services Tax Act was introduced by the Indian government, to subsume different types of taxes levied at the Central or State level such as Service Tax, Luxury Tax, VAT, entertainment tax, etc, and a consolidated structure is offered under the GST Act. Here, a non-resident India who undertakes transactional activities that are relevant to services and goods should also register as a taxable person under GST.

The Goods and Service Tax Law has improved the ease of doing business. The complexities of tax have reduced as the GST has subsumed multiple taxes into a single simple system.

Eligibility Criteria

Who can register as a non-resident taxpayer under GST in India?

Irrespective of the turnover a non-resident taxable person is required to obtain GST registration in India. Here it should be noted that all the non-resident taxpayers are required to obtain the GST registration five days before commencing with the business activity.

It is better if the foreign business that is supplying the goods and services gets the GST registration at the earliest. It is to be noted that the NRI cannot exercise the option to pay taxes under the composition scheme.

A business entity that is incorporated or established outside India that is making the supply of taxable goods and services is required to obtain the GST registration in India his tax identification number will be based on the country.

Documents required to obtain the GST registration

What are the documents required to obtain the GST registration?

GST registration for a non-resident taxable person requires the submission of the following documents.

  • 1

    Principal place of business proof

    • For own business- Any document that is supporting the ownership of the premise like the latest tax property or the municipal khata or the copy of the electricity bill.
    • For rented or leased premises- A copy of the valid rent or lease agreement with any document that is supporting the ownership of the lessor's premises like the property tax receipt or municipal khata copy or the electricity bill.
    • For premises not covered above- A copy of the consent letter with a document supporting the ownership of the consenter's premises like the municipal khata or the electricity bill copy. Even for shared properties, the same documents can be uploaded.
  • 2

    Identity Proof

    It is necessary to submit the scanned copy of the passport of the Non-resident taxable person with the VISA details. In the case of a business entity that is incorporated or established outside India the application for the registration, it should be submitted along with the tax identification number or the unique number that is based on which the entity is identified by the government of that country or the PAN if it is available.

    • In the case of the Company/ Society / LLC/ FCNR etc, a person holding the attorney power with the authorization certificate.
    • A scanned copy of the incorporation certificate of the company is registered outside India or in the country.
    • Scanned copy of the license that is issued by the foreign country if it is available.
    • Scanned copy of the clearance certificate that is issued by the Government of India, if available.
  • 3

    Bank Account proof

    Scanned copy of the first page of the bank passbook or one page of the bank statement, the opening page of the bank passbook held in the name of the business that contains the Account number, name of the account holder, MICR, IFSC code, and branch details.

Procedure to obtain GST registration for foreigners

How to obtain the GST registration for foreigners?

  • The applicant has to submit the GST REG 09 to apply for GST registration in India. To apply for GST registration, foreign businesses, or applicants it is first necessary to identify the person in India to act as the authorized representative for the GST compliance and the PAN ( which is optional).
  • The Goods and services tax law states that a GST application should be made by the non-resident taxable person should be signed by the authorized signatory who should be a person residing in India with a valid PAN.
  • Once the authorized signatory is appointed the GST registration can be processed for the non-resident taxable person. For the regular taxpayers, the GST registration is based on the PAN but for the non-resident taxable person, it is necessary to submit the Tax Identification Number or the Unique Number based on which the entity is identified by the Government of that country or the PAN.

Authorization of Authorized representative in India.

A non-resident taxable person is required to appoint an authorized representative in India. An authorization or the copy of the resolution of the managing committee or the Board of Directors that is authorizing the authorized representative is to be provided in the following formats.

Authorisation for Authorised Representative in India

GST deposit for non-resident taxpayers

What is a GST deposit for Non-resident taxpayers?

Non-resident taxable persons and casual taxable persons under the GST are required to hand over a certain amount as a GST registration deposit. The amount of the GST registration deposit will be equal to the expected tax liability during the validity of the registration. If the non-resident taxable person is requesting the extension, then he has to pay the tax in advance based on the expected tax liability of the period of extension. To know more about the deposits of GST registration click here.

After filing the GST registrations an application reference number will be generated to pay the advance tax.

On the payment of tax, the taxpayer's electronic cash ledger is credit and the certificate is provided.

What is the GST registration for foreigners?

GST registration for foreigners and the casual taxable person has validity over the GST registration that is obtained. The validity period is based on the request of the taxable person and the amount of the GST deposit that is remitted.

If the non-resident taxable person is willing to extend the validity period of the GST registration then an application is to be made in the Form GST REG 11 before the validity.

Provisional GST Registration for Foreigners

  • A non-resident taxable person will file the application electronically using the Form GST REG 09 with the self-attested copy of the valid passport.
  • The application for GST registration is to be duly signed or verified through the EVC. This application is to be submitted at least five days before the commencement of business.
  • In case it is a foreign business that is incorporated or established outside India then an application for registration has to be submitted along with the Tax identification number of the country which is similar to our PAN Card.
  • An advance deposit of the tax is also to be submitted with the application.

Final GST registration for Foreigners

  • If the person is willing to register under the GST then he will have to submit an application electronically using the Form GST REG 26. The information is to be furnished within three months.
  • If the information is correct and then the final GST registration to the Non-resident taxpayers will be given in Form GST REG 06.
  • At a time when the information is not correct then the officer is required to issue a show-cause notice using the Form GST REG 27. An opportunity will be given after which the provisional registration will be canceled through the Form GST REG 28.
  • If the applicant's reply is satisfactory then a show-cause notice issued can be nullified by issuing an order in the Form GST REG 20.
  • This application that is made by the non-resident person will be signed by the authorized signatory who is a person residing in India with a valid PAN Card.

Benefits of obtaining GST registration

What are the benefits of getting GST registration?

  • Unified taxation system: GST registration is a unified platform that has subsumed all the other taxes such as the VAT registration, service tax registrations. All indirect taxes are streamlined under one umbrella GST registration.
  • Ease of doing business: There are multiple taxes such as the Central Sales Tax, Additional Custom duty, purchase tax, luxury tax. etc anymore as the GST undertakes the taxes on the goods and services. This has made business easier for the taxpayers.
  • Decreased tax liability: With a greater annual turnover threshold the taxes which need to be paid are lower as compared to what was in the case of the VAT. GST has also increased the tax base considerably which decreased the overall tax liability and made business more compliant.

Important Instructions to be followed by the taxpayers applying for GST registration for foreigners

  • The name of the applicant must be entered as per the passport.
  • The applicant must apply for GST registration on the common portal by filing form GST REG-09 at least five days before the business's commencement.
  • Tax identification number / unique number (number by which the respective government identifies the entity) or PAN (if applicable) is necessary to be submitted along with the application in case of a business entity incorporated or established outside India.
  • The application must be duly signed or verified through EVC.

What is the cost of GST Registration for Foreigners?

GST Registration for Non-Resident Taxable Person starts from Rs.9899

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

9899

all inclusive fees

Premium

79899

all inclusive fees

  • Non-Resident GST Registration
  • LEDGERS GST Software
  • 1 Year Authorised Signatory
  • 1 Year Place of Business Address
  • 1 Year GST Return Filing

Frequently asked questions

Who should get GST registration?

An entity liable to be registered under GST should apply for GST registration within 30 days.

Can NRIs apply for GST registration?

A non resident taxable person who carries on business ocassional can register under GST.

When should non resident taxable people register for GST.

Casual taxable persons and non resident taxable persons are required to register under GST before commencing business.

What is aggregate turnover?

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.

Who is primary authorized signatory?

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.

Can i register GST voluntarily?

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.

Is PAN mandatory for GST registration?

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

Can a business operate across India with one GST number?

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.

Can entities with VAT or service tax apply for new GST certificate?

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.

What is the validity of the GST certificate?

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.

How to obtain a GST certificate?

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.

From which state a taxable person should obtain GST registration?

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

How long it takes to obtain GSTIN?

Once the GST application is submitted the GSTIN is allotted within 7 working days.

Last updated: Nov 27, 2021

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