Foreign Non-Resident Taxpayer – GST Registration

Foreign non-resident taxpayers are mandatorily required to obtain GST registration in India if they supply goods or services to residents in India. According to the GST Act, “non-resident taxable person” means any person who occasionally undertakes transactions involving 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. In this article, we look at the GST registration procedure for foreign non-resident taxpayers and the documents documents required for obtaining GST registration.

Foreign Non-Resident Taxpayer – GST Registration Procedure

All foreign non-resident taxpayers are required to obtain GST registration at least 5 days prior to commencement of business or undertaking of supply to residents in India. To obtain GST registration in India, the following steps can be followed by a non-resident taxpayer:

Step 1: Appoint an Authorised Signatory

Application for GST registration as a non-resident taxable persons must be signed by an authorised signatory who is a person resident in India having a valid PAN. Hence, prior to beginning the GST registration process, all foreign non-resident taxpayers are required to find and appoint an authorised signatory in India for GST registration and GST compliance purposes.

Step 2: Provide Authorisation to Authorised Signatory

The promoters or Officers of the foreign company must then prepare and sign a GST Declaration,  validating the appointment of an authorised signatory in India and his/her acceptance of responsibility for complying with GST regulations on behalf of the foreign company.

Step 3: Apply for GST Registration

Once the above steps are completed and the list of documents mentioned below is prepared, an application for GST registration as a non-resident taxable person can be submitted. Once the GST registration application is submitted, a temporary reference number would be provided by the GST Portal for remitting GST deposit.

IndiaFilings can provide assistance with GST registration for foreign non-resident taxpayers under GST.

Step 4: Pay GST Deposit

All non-resident taxable persons are required to remit a deposit for obtaining GST registration. The amount of GST deposit would depend on the validity period of GST registration requested and the amount of GST liability the taxpayer is expected to accrue during the period. Hence, based on the validity and expected tax liability, the GST deposit must be deposited into the notified banks. Once the GST deposit is remitted, the electronic cash ledger of the taxpayer would be credited for the amount. The GST deposit can then be used against any GST payments that are to be made by the taxpayer.

Step 5: GST Registration Certificate Issued

On remittance of the GST deposit and the necessary documents, GST registration certificate is issued. GST registration certificate for foreign non-resident taxpayers and casual taxable persons have a fixed validity period. In case the validity period must be extended, an application for extension must be submitted by the foreign non-resident taxpayer, prior to the expiry of registration. Along with the GST registration extension application, GST deposit must again be remitted based on the expected amount of tax liability to be accrued during the extension period.

Documents Required for GST Registration

The documents required for GST registration can be classified into five major heads as shown in the following infographic.

PAN or Tax Identification Number of the Applicant

For regular taxpayers having residence in India, PAN or Permanent Account Number is a mandatory requirement. However, for foreign non-resident taxpayers, incorporated or established outside India, the application for registration can be submitted along with tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its PAN, if available. Hence, PAN is not mandatory for the GST registration applicant, in case of a foreign non-resident taxable person.

Proof of Business Incorporation

Proof of business incorporation or certificate of incorporation from an appropriate authority of the foreign Government can be submitted to validate the business.

Identity & Address Proof of Promoters with Photographs

Identity and address proof of the promoters of the business must be submitted. In case of foreign nationals, scanned copy of the passport of the non-resident taxable person with VISA details must be submitted.

For the authorised signatory in India, PAN would be required along with an acceptable address proof like passport, driving license, voters identity, etc.,

Proof of Address

The following proof of principal place of business must be submitted:

• For own premises – Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
• For Rented or Leased premises – A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
• For all other scenarios – A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents can be uploaded.

Bank Account Statement

Scanned copy of the first page of bank passbook or the relevant page of bank statement or scanned copy of a cancelled cheque containing name of the Proprietor or Business entity, Bank Account No., MICR, IFSC and Branch details including code should be uploaded.

Class 2 Digital Signature

A class 2 digital signature must be obtained for the authorised signatory in India to apply for GST registration.

Know more about GST registration, GST return filing, etc., on the IndiaFilings GST Portal.