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.
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.
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.
GST registration for a non-resident taxable person requires the submission of the following documents.
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.
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.
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.
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.
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.
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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: Nov 27, 2021