Compliances under GST for NRIs

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The goods and services tax is the biggest milestone in the history of taxation. Earlier, various forms of taxes were put on the citizens and the distribution of taxes between the state and center was complicated. So, the concept of tax on common goods and services was introduced in the entire country to simplify the taxation process. In this article, we will discuss Compliances under GST for NRIs.

Under GST, the taxable registered entity has to follow the compliances such as GST Return Filing before the deadline. If the entity fails to pay the GST Return, then there is a provision of a late fine including the interest.

To file GST, it is essential to know about GST Registration and the value of tax levied on goods and services. However, the compliances under GST for NRIs are different and such entities collect the taxes from the customers and then further go for the Input Tax Credit (If eligible).

However, every NRI is not entitled to ITC against the procurement of goods. The NRIs have to fill the GSTR-5 form for GST return. Moreover, there is a specified deadline to fill form GSTR-5 and it is the 20th of every month or 7 days before the end of the validity of GST certification.

Refund to NRTP

In general, NRTP has to deposit the advance money while registering for GST and if there is an excess amount, then the same will be refunded when NRTP completes all the returns before the expiration of the GST certificate. Moreover, to get the refund, NRI will have to fill the form GSTR-5 that is available in the GST portal.

The government of India is trying hard to make Compliances under GST for NRIs smoother so that they can do the business efficiently. The entire process is furnished via an online process such as GST Registration, GST Return, and many more.

Exemption of goods from GST

GST is not applicable for every good and some of them are exempted such as alcohol and petroleum products. These products come under VAT and excise duty and the distribution of collected money through these products are done between Centre and States.  The amount that state and centre retain is decided by the Finance Commission and it is the body that maintains the financial relationship between the Central and State Government.

GST Law for NRTP

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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