Blog

A Non-Resident Taxable Person (NRI) under the Goods and Services Tax (GST) regime refers to any individual, business, or organization that occasionally engages in transactions involving the supply of goods or services in India without having a fixed place of business or residence within the country. Foreign entities or individuals supplying goods or services to India must comply with GST regulations, including mandatory registration.

GST Registration Requirements

• Mandatory Registration: All NRIs are required to obtain GST registration in India, irrespective of their annual turnover or other thresholds.
• Timeline: GST registration must be secured at least 5 days prior to the commencement of business operations in India.

Procedure for GST Registration

Pre-requisites:

1. Authorized Representative: Appoint an individual in India as an authorized representative for GST compliance.
2. Tax Identification: While obtaining a PAN in India is optional, NRIs must provide their tax identification number or a unique identification number recognized by their home country.

Application Process:

1. Form GST REG-09: Submit the GST registration application electronically using this form.
2. Attestation: The application must be attested by the authorized signatory, who should be a resident of India with a valid PAN.
3. Documentation: Submit relevant documents, including identity proof, business details, and authorization letters.

GST Registration for OIDAR Service Providers

For non-resident entities providing Online Information and Database Access or Retrieval (OIDAR) services to unregistered users in India:

• The application must be submitted using Form GST REG-10.
• Registration is mandatory to ensure compliance with GST laws for digital services provided to Indian recipients.

Documents Required for GST Registration

Business Premises Proof:

• Owned Property: Latest property tax receipt, municipal khata copy, or electricity bill.
• Rented/Leased Property: Rent or lease agreement along with the property owner’s supporting documents.
• Consent Letter: For shared premises, a consent letter and supporting property documents of the consenter.

Identity Proof:

• Scanned passport copy with visa details.
• Tax identification number or unique identification number.
• Certificate of incorporation (for businesses).

Bank Account Proof:

• First page of the bank passbook or bank statement containing account details (Account Number, IFSC, MICR, and branch).

Authorized Representative Documentation:

• Authorization letter or board resolution appointing the authorized representative.

Advance Tax Deposit

Non-resident taxable persons are required to remit an advance tax deposit equal to their estimated tax liability during the validity of their GST registration.

• Extension of Validity: If an extension is required, additional tax deposits based on the estimated liability for the extended period must be made.

Validity of GST Registration

GST registration for NRIs is granted for a specific validity period, determined by the amount of tax deposited and the duration requested in the application. To extend the validity:

• Submit Form GST REG-11 before the existing registration expires.

Provisional and Final Registration

Provisional Registration:

• Submit Form GST REG-09 at least 5 days prior to commencing business.
• Attach passport and tax identification details.
• Make advance tax deposits based on self-estimated liability.

Final Registration:

• Complete the process by submitting Form GST REG-26 electronically with all necessary details within 3 months of provisional registration.
• Receive the GST registration certificate (Form GST REG-06) upon successful verification.
• Address discrepancies, if any, through Form GST REG-20 or respond to cancellation notices using Form GST REG-28.

Key Instructions for NRIs

1. Ensure that the applicant’s name matches the passport.
2. File the GST registration application (Form GST REG-09) at least 5 days before starting business operations.
3. Submit accurate and complete documentation to avoid delays or rejections.
4. The authorized signatory must be a resident of India with a valid PAN.

Conclusion

GST registration is a critical step for non-resident taxable persons aiming to conduct business in India. By adhering to the outlined procedures, providing accurate documentation, and complying with advance tax deposit requirements, NRIs can ensure seamless registration and compliance with GST regulations. This process not only enables lawful operations but also facilitates smoother business transactions in India’s dynamic market.

If you have any further questions or need assistance, feel free to reach out to us at admin@ushmaassociates.com or info@nricaservices.com, or contact us via call/WhatsApp at +91 9910075924.

Stay Updated, Stay Compliant!

Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.