GST Registration for Foreigners

GST registration for NRIs is a must if the Non-resident taxable person is making taxable supply in India. India is considered to be an emerging economic powerhouse. India attracts a lot of non-residents for business purposes. Under GST, a non-resident taxable person has to apply for GST registration if he undertakes transactions involving the supply of goods or services or both.

Hence, an individual staying abroad or foreign business or organization supplying goods or services to India would be a non-resident taxable person who requires compliance with all regulations Under the Goods and Service law Act.

Goods and Service Tax Law has improved the ease of doing business. The tax complexities have reduced as GST has subsumed multiple taxes into a single, simple system.

GST registration is mandatory once the entity crosses a minimum threshold turnover. GST registration mandates all the entities involved in buying or selling goods and services, or both need to register and obtain GSTIN.

Who needs to apply for GST registration as a Non-resident taxable person?

Irrespective of his or her turnover, a non-resident taxable person is required to GST registration in India.

It should also be noted that the GST act and Rules specify that all non-resident taxable persons must obtain the GST registration five days before commencing with the business activities.

It is better if the foreign business supplying goods and services gets GST registration at the earliest. An NRI cannot exercise the option to pay taxes under the composition scheme.

Also, a business entity that is incorporated or established outside India has to apply for GST registration and his Tax identification number based on which it is identified by the Government of that country or The PAN if available.

How can NRIs obtain GST registration?

The applicant must submit Form GST REG-09to apply for GST registration in India.

To apply for GST registration, foreign businesses or applicants must identify a person in India to act as its authorized representative for GST compliance and obtain PAN (optional).

The goods and service tax law states that any GST application should be made by a non-resident taxable person should be signed by his authorized signatory, who shall be a person residing in India having a valid PAN.

After the authorized signatory is engaged, GST registration can be processed for the NRIs. For regular taxpayers, GST registration is based on the PAN. In contrast, the Non-resident taxable person needs to submit his Tax Identification Number or Unique Number based on which the entity is identified by the Government of that country or its PAN.

What documents are required for GST registration?

GST registration for a non-resident taxable person requires the submission of the following documents.

  • 1

    Proof of Principal place of business

    For own business- any document that supports the ownership of the premise like the latest tax property or the municipal khata or the copy of electricity bill

    For rented or leased premises- a copy of the valid Rent/ lease agreement with any document supporting the ownership of the lessor's premises like the Property tax receipt or municipal khata copy or the electricity bill.

    For premises not covered above- a copy of the consent letter with any document supporting the ownership of the consenter's premises like the municipal khata or electricity bill copy. For shared properties also the same documents can be uploaded.

  • 2

    Identity Proof

    Scanned copy of the passport of the Non-resident taxable person with VISA details. In case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number based on which the entity is identified by the Government of that country or its PAN if available.

    • In the case of Company/ Society/LLC/ FCNR/etc., a person holding power of attorney with an authorization certificate.
    • Scanned copy of Certificate of Incorporation if the company is registered outside India or in India.
    • Scanned copy of the license that is issued by the foreign country if available
    • Scanned copy of the clearance certificate that is issued by the government of India, if available.
  • 3

    Bank Account proof

    Scanned copy of the first page of the Bank passbook/ one page of bank statement, the opening page of the bank passbook held in the business name- that contains the Account number, name of the account holder, MICR, IFSC, and branch details.

What are GST deposits for non-resident taxpayers?

Non-resident Taxable person and the casual taxable person under GST must hand over a certain amount as a GST registration deposit.

The amount of the GST registration deposit would be equal to the expected tax liability during the validity of the registration. If a non-resident taxable person requests for extension, then the tax must be paid in advance based on the expected tax liability of the extension period. 

After filing the GST registration is filed by an NRI, an application reference number would be generated to pay advance tax.

On the tax payment, the taxpayer's electronic cash ledger is credited, and the certification is provided.

Validity of GST registration for Foreigners

GST registration for foreigners and the casual taxable person has a validity period. The validity period is based on the taxable person's request, and the amount of the GST deposit remitted.

If the Non-resident taxable person wants to extend the validity period of GST registration, an application can be made in the Form GST REG-11 before the validity.

Authorization for Authorised Representative in India

A Non-resident taxable person is required to appoint an authorized representative in India. An authorization or copy of Resolution of the Managing Committee or Board of Directors authorizing the authorized representative must be provided in the following format:

What instructions should be followed by Non-resident Taxpayers?

  • The name of the applicant must be entered as per the passport.
  • The applicant must apply for GST registration on the common portal by filing form GST REG-09 at least five days before the business's commencement.
  • Tax identification number / unique number (number by which the respective government identifies the entity) or PAN (if applicable) is necessary to be submitted along with the application in case of a business entity incorporated or established outside India.
  • The application must be duly signed or verified through EVC.

Procedure for Provisional Registration

  • The Non-resident taxable person needs to apply Form GST REG-09. A self-attached copy of the valid passport needs to be submitted along with the application.
  • In the case of foreign entities, the application is to be submitted along with the tax identification number or unique number or PAN (if applicable)
  • A non-resident taxable person is required to deposit the advance tax. Such advance payment of tax would be based on self-estimation. It is mandatory to submit along with the application.

Procedure for Final Registration

  • Final registration of a Non-resident taxable person would be carried out in the same line as the resident taxpayer in India. The procedure for the same is narrated below:
  • An application in FORM GST REG-26 should be submitted electronically. All the information related to tax and GST is to be submitted within three months from the provisional registration.
  • If the provided information is accurate and complete, then the final GST registration will be issued to the application. In FORM GST REG-06. In case of incorrect or incomplete then a show-cause notice will be given to the applicant in FORM GST REG-27
  • If the applicant is not able to reply appropriately to the show cause notice, after allowing the applicant of being heard, the provisional registration granted to the applicant would be canceled through FORM GST REG-28
  • And if the said reply is acceptable to the officer, the show cause notice will be nullified by issuing an order in FORM GST REG-20
  • The application should be duly signed by the authorised signatory of the applicant. The said authorised signatory should be a resident of India, and he should have a valid PAN

FREQUENTLY ASKED QUESTIONS

Who should get GST registration?

An entity liable to be registered under GST should apply for GST registration within 30 days.

Can NRIs apply for GST registration?

A non resident taxable person who carries on business ocassional can register under GST.

When should non resident taxable people register for GST.

Casual taxable persons and non resident taxable persons are required to register under GST before commencing business.

What is aggregate turnover?

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.

Who is primary authorized signatory?

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.

Can i register GST voluntarily?

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.

Is PAN mandatory for GST registration?

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

Can a business operate across India with one GST number?

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.

Can entities with VAT or service tax apply for new GST certificate?

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.

What is the validity of the GST certificate?

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.

How to obtain a GST certificate?

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.

From which state a taxable person should obtain GST registration?

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

How long it takes to obtain GSTIN?

Once the GST application is submitted the GSTIN is allotted within 7 working days.