If you have a business that involves importing goods or services from abroad or managing a business for a Non-Resident Indian (NRI) or are an NRI yourself planning to do any business in India, then this article is for you. Here, we are going to discuss the relevant topics revolving around the GST Registration Process for NRI in India.
In this article:
- Who is a “Non-Resident Taxable Person” under GST
- Procedure of GST Registration for Foreign Companies
- Provisional Registration
- Final Registration
- Latest Updates on GST Registration
- Download GST Form for NRI
The Goods and Services Tax Law has defined a ‘non-resident taxable person’ as any person who occasionally undertakes transactions involving the 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 simpler words: All businesses supplying goods, services or data from databases located outside India will come under the law mentioned above.
Section 24 of the GST law: Under this section, the requirement for registration for a Non-Resident Taxable Person has been specified. There are certain businesses and entities that mandatorily need to register under Goods and Services Tax and are not governed by the minimum threshold limit of Rs. 20 Lakh/ 10 Lakh. Goods and Services Tax Registration is essential for every company or non-resident individual involved in either a one-time or frequent taxable transactions.
Before we get into the process, let’s understand the basic requirements that must be understood by the NRIs:
- Eligible individuals/companies need to apply for registration at least 5 days prior to the commencement of business
- Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal state or Union territory where the nearest point of the appropriate baseline is located.
The process for registration requires the certain documents:
- Duly signed application
- Self-attested copies of valid passport
- Form GST REG-09
- If not duly signed, application must be verified through EVC (a new mode of electronic verification based on Aadhar)
- Tax Identification Number (PAN Equivalent of Resident Country)
Note: After submitting the documents, the applicant is needed to make an advance deposit of tax in his electronic cash ledger on the provided temporary reference number. Once deposited, an acknowledgement will be issued. For extending the period of registration, form GST REG-11 should be furnished before the end of validity of the registration.
The process of registration is simple as concluded from the above segments:
- Sort your documents
- Apply using GST REG-09
- Pay Advance Tax
- Get Registered
- Use GST REG-11 for extending registration
- A non-resident taxable person will file an application for registration electronically using FORM GST REG-09 along with a self-attested copy of his/her valid passport.
- The application must be duly signed/ verified through EVC
- It must be submitted at least five days prior to the commencement of business.
- In case, it is a foreign business entity (established or integrated outside India) the application for registration shall be submitted along with its tax identification number of that country (equivalent of PAN) or its PAN (if it has one).
- An advance deposit of tax (estimated) must also be submitted along with the application
Final registration will be the same as in the case of resident taxpayers. The process is as follows:
- To register under Goods and Services Tax, the individual will have to submit an application electronically using the FORM GST REG–26. Any information must be furnished within a period of three months
- If the information is correct and complete, the final registration will be given in FORM GST REG-06
- If the information is incorrect, then the officer will issue a show-cause notice using FORM GST REG-27. A reasonable opportunity of being heard will be given after which the provisional registration will be cancelled through the FORM GST REG-28
- If the applicant’s reply is satisfactory then the show cause notice issued can be nullified by issuing an order via the FORM GST REG- 20
- The application for registration made by a non-resident will be signed by his authorized signatory who must be a person resident in India with a valid PAN
27th June, 2020: The time limit for completion or compliance has been further extended to 31st August 2020, where the time limit falls between the period from 20th March 2020 to 30th August 2020. But it does not include cases where a person needs to obtain Goods and Services Tax registration under section 25 (Normal registration) and 27 (Registration as a casual taxable person/ non-resident taxable person) of the CGST Act.
3rd April, 2020: The time limit for completion or compliance has been extended to 30th June 2020, where the time limit falls between the period from 20th March 2020 to 29th June 2020. It does not include cases where a person needs to obtain Goods and Services Tax registration under section 25 (Normal registration) and 27 (Registration as a casual taxable person/ non-resident taxable person) of the CGST Act.
Here’s the link to download the Goods and Services Tax Registration form prescribed by the government of India.
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Yes, any foreign company that supplies goods and/or services to recipients in India, but operates without a fixed place of business or residence in India should mandatorily obtain GST registration.
Yes. All individuals and businesses supplying goods, services or data from databases located outside India will come under GST. Therefore, if an NRI falls under the criteria, he/she will have to register under GST.
Yes. Since GST is a consumption based tax, foreigners have to pay GST. If the goods are bought in India and taken abroad then it should be seen as export and necessary refunds can be made available.
“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.
Refund of GST will be available at designated airports and ports only and the refund of the GST paid on retail purchase by the foreign tourists during their stay in India is allowed. A part of the eligible amount of refund will be deducted as handling fee for services rendered. If the goods are bought in India and taken abroad then it should be seen as export and necessary refunds can be made available.