GST Registration for Foreigners

Following the implementation of the GST framework, the Government of India mandated that all foreign non resident taxpayers obtain GST registration when supplying goods or services to residents within the country. 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, IndiaFilings 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 our expert team today to easily get your GST registration. We'll guide you smoothly through each step for a worry-free process.

Non-Resident Taxable Person

A "Non Resident Taxable Person" under the Goods and Services Tax (GST) framework in India refers to any individual or business entity that conducts transactions involving the supply of goods or services, or both, within India but does not have a fixed place of business or residence in the country. This includes entities operating in India occasionally, in any capacity such as principal, agent, or any other manner, but with their base of operations or residence outside of India. The GST law mandates that these non-resident entities register under GST and comply with its provisions, regardless of the volume or frequency of their transactions in India.

GST Registration for Foreigners

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 regime.

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).

Key Documents Needed - GST Registration for foreigners

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

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 duly filled to meet the 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 ninety 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 signature or an Electronic Verification Code (EVC).
• Timely Submission Before Business Commencement: The application must be submitted at least five days before the planned start of business activities in India. This timeframe allows for the registration to be processed and approved before business operations begin.
• Business Entity-Specific Requirements: 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: 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 solidifies 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 transactions within India 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 three months of applying for final registration. This is critical for validating the provisional registration.
• Verification and Approval: If the submitted information is accurate and complete, final GST registration is granted, and FORM GST REG-06 is issued to the applicant.
• Discrepancies and Show-Cause Notice: In cases where the information provided is found to be incorrect or incomplete, a show-cause notice using FORM GST REG-27 may be issued. The applicant will then be given a reasonable opportunity to be heard.
• Cancellation or Rectification: If the authorities are not satisfied with the resolution of the discrepancies, the provisional registration may be cancelled using FORM GST REG-28.

• Conversely, if the applicant's response satisfactorily addresses the concerns, the show-cause notice can be nullified with an order issued via FORM GST REG-20, leading 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.
• Commencing Taxable Supplies: With the registration certificate, the NRI is now authorized to start making taxable supplies in India, adhering to the GST regulations.

IndiaFilings experts can guide you through obtaining GST registration for NRIs.

Extension of GST Registration Validity

Suppose the NRI wishes to extend the registration beyond the initially approved period (up to ninety 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 regime.

Input Tax Credit

A non-resident taxable person is not eligible to claim input tax credit for any goods or services received, except for those directly imported goods. 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. This return, which includes 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 thirteen days following the end of a calendar month or seven days after the registration validity period expires, whichever comes first.

GST Refund for Foreigners in India (Payment of Advance Tax)

The advance tax paid by a non-resident taxable person will be eligible for GST refund for foreigners in India only after submitting all necessary returns for the duration their registration certificate was valid. The application for a refund can be made in section 13 of FORM GSTR-5.

IndiaFilings: Expert Assistance for GST Registration for Foreigners

IndiaFilings 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: IndiaFilings 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 necessary documentation.
• Timely Submissions: Understanding the importance of deadlines, IndiaFilings can help ensure that your GST registration application is submitted within the stipulated time frames, avoiding unnecessary delays.
• Ongoing Support: Beyond the initial registration, IndiaFilings can provide ongoing support for GST compliance, including filing GST returns, maintaining records, and updating registration details as 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 IndiaFilings today!