India is a very alluring market for foreign investors and businesspeople. You must register under GST if you are a non-resident and intend to open a business here. In this article, we’ll go through how non-residents register for GST and the necessary forms.
Under GST, who qualifies as a “Non-Resident Taxable Person”?
Any person who occasionally engages in transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who does not have a fixed place of business or residence in India, is referred to as a “non-resident taxable person” under the Goods and Services Tax Law.
Simply put: The aforementioned rule will apply to all companies that supply goods, services, or data from databases that are located outside of India.
The requirement for registration for a Non-Resident Taxable Person has been outlined in Section 24 of the GST law. Every business or non-resident person engaged in occasional or continuous taxable transactions must get GST Registration in India to operate their business legally.
Understand in Detail: GST registration for a foreign company in India
Provisional GST Registration for NRIs
- A non-resident taxable person must submit an electronic registration application using the GST REG-09 form and attach a self-attested copy of their current passport.
- The application needs to be properly signed or EVC certified.
- It has to be delivered at least five days before the start of operations.
- If a foreign business company (formed or founded outside of India) applies for registration, it must also give either its PAN or the country’s tax identification number (equivalent to our PAN) (if it has one).
- Application must be submitted with an advance tax payment (based on estimation).
Final GST Registration
Final registration will take place as with resident taxpayers in the following manner:
- The FORM GST REG-26 must be used to electronically submit an application if the person intends to register for GST. Any information must be provided within a three-month window.
- The final GST registration will be provided in FORM GST REG-06 if the information is accurate and full.
- The officer will utilize FORM GST REG-27 to issue a show-cause notice if the information is incorrect. The provisional registration will be canceled using the FORM GST REG-28 following a reasonable opportunity to be heard.
- If the applicant’s response is adequate, the show cause notice may be revoked by issuing an order using the GST REG-20 form.
- A non-application resident’s registration shall be signed by his authorized signatory, who must be an Indian citizen with a current PAN.
Does GST apply to overseas businesses?
Yes, it is mandatory for any foreign business that operates without a fixed place of business or residence in India and provides goods and/or services to Indian consumers to register for GST.
Does GST apply to NRIs?
Yes. GST will apply to all persons and organisations that supply goods, services, or data from databases that are situated outside of India. As a result, if an NRI meets the requirements, they must register for GST.
Do foreigners in India have to pay the GST?
Yes. Since GST is a consumption-based tax, it is due from foreigners. When products are purchased in India and shipped outside, this should be considered an export and the requisite reimbursements can be provided.
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