Many non-residents have business ties with India although they may not have any fixed place of business or residence in the country. They deal with the supply of goods and services and must abide by the nation’s laws. This article is about a non-resident taxable person under GST law. It covers everything from the meaning, registration, requirements, procedure, validity, extension, return to refund.
Non-Resident Taxable Person Meaning
“A non-resident taxable person” is a person who deals with the supply of goods and services (or both) and their transactions. This could be as a principal, agent or in any other role that has no fixed place of business or residence in India.
Non-Resident Taxable Person is Required to Apply for Registration
If a non-resident taxable person is making taxable supply in India, they must register. There is no certain limit required to register. A non-resident taxable person is not entitled to pay tax under composition levy.
Requirements for a Non-Resident Taxable Person
- Must apply 5 days before the start of their business
- Must have a valid passport (need not have a pan number in India)
- A business incorporated or established outside India must submit:
- the registration application along with its tax identification number
- or the number it is identified by the government of the country it is in
- or its permanent account number if available.
- Must make an advance deposit of tax equal to their estimated tax liability for the period of registration
A non-resident taxable person has to submit a simplified form GST reg09. They do not have to apply through the regular application used by other taxpayers.
- The application is an electronic application
- Self-attested copy of their valid passport, signed or verified through EV, in the form GST REG-09
This has to be done at least 5 days prior to the start of business at the common portal either directly or through a facilitation center notified by the commissioner.
If Business is Incorporated or Established Outside of India
If the non-resident taxable person is a business incorporated or established outside of India:
- The application for registration must be submitted with its tax identification number or unique number with which the entity is identified by the Government
- Or its PAN if available
Procedure for a Non-Resident Taxable Person
Application for registration made by a non-resident taxable person must be:
- Signed by their authorized signatory who is a person who is a resident of India and has a valid PAN, mobile number and email address
- On successful verification of the PAN, mobile number and email address the npn- resident taxable person is given a temporary reference number by the common portal upon paying the mandatory advance deposit of tax that is the same as the estimated tax liability for the period of registration
- The registration certificate will be issued electronically after the deposit appears in their electronic cash ledger.
- The deposited amount will be credited to the electronic cash ledger of the non-resident person.
- The non-resident taxable person can make taxable supplies once the certificate of registration has been issued.
The certificate of registration is valid for the specified time period on the application for registration or 90 days from the effective date of registration, whichever one is earlier.
If the non-resident taxable person needs to extend the period of registration listed on the application of registration, they can fill out and submit the form GST REG-11 electronically through the common portal. They can do so directly or through a facilitation center notified by the commissioner. They must do this before the validity of the period of registration expires.
The validity period of 90 days can only be extended further upto 90 days. The extension will be granted upon the payment of the tax (additional) the same as the estimated tax liability for the period of registration extension desired.
Input Tax Credit:
The input tax credit on goods or services or both will not be available to a non-resident taxable person except on those they import. Taxes paid by a non-resident taxable person will be available as credit to the respective recipients.
Non Resident Taxable Person Can File Return in Form GSTR -5
The non- resident taxable person must file a return through form GSTR – 5 electronically through the common portal. This can be done directly or through a facilitation center notified by the commissioner. They must include all the details regarding outward and inward supplies. They must pay the tax, interest, penalty, fees and any other amount that needs to be paid as per the rules. This needs to be done within 20 days after the end of a calendar month or within seven days after the last day of the validity of the period of registration.
The amount of the advance tax deposited by the non-resident taxable person will be refunded once they have provided all the returns for the entire period for which the certificate of registration was valid. The refund can be applied for with the serial no. 13 of the Form GSTR -5.
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It is valid for 90 days.
Non -resident taxable persons can fill out and submit the form GST REG-11 electronically through the common portal in order to extend the period of registration.
Which form is required to file a return ?
Non-resident taxable person can file a return through form GSTR-5 .
The refund can be applied for with the serial no. 13 of the form GSTR -5.