GST Registration for Non-Resident Taxable Person
The Goods and Services Tax Law has defined a ‘non-resident taxable person’ as any person who occasionally undertakes transactions involving the supply of goods or services. The ‘non-resident taxable person’, whether as principal or agent or in any other capacity, has no fixed business or residence in India.
In simple words, the businesses supplying goods or services using the infrastructure outside India falls into this category. Mainly data retrieval services using data centres located outside India will fall under this definition of GST law.
File your GST registration application online through TAXAJ. Get help with GST registration procedure, eligibility and documents required.
It usually takes 3 to 5 working days.
- Session with TAXAJ Expert
- Filing of Application for Registration
- Follow up till you secure GST Identification Number
- Any & All Businesses which are supplying goods or services or data retrieval services from databases located outside India.
- Purchase of Plan
- Expert Assigned
- Upload documents on vault
- Registration Form Submission on GST portal
- ARN Number Generated which can be used temporarily to issue invoices
- GSTIN Received (3-5 working days subject to Govt. approval)
Name, Contact Number and Email Id of Stakeholder.
Self Attested PAN, Aadhar & Passport size photo of Stakeholder.
Specimen Signatures of Stakeholder.
Latest Electricity Bill/Landline Bill of Registered Office.
NOC from owner of registered office. (If Owned)
Rent Agreement from Landlord. (If Rented/Leased)
Brief description of main business activities of the proposed Company.
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 on the basis of which the entity is identified by the Government of that country, or it’s PAN, if available.
In case of Company/Society/LLP/FCNR/ etc. person who is holding power of attorney with an authorisation letter.
Scanned copy of Certificate of Incorporation, if the Company is registered outside India or in India.
Scanned copy of License is issued by the foreign country, if available.
Scanned copy of Clearance certificate issued by Government of India, if available.
Authorisation for Authorised Representative in India.
GST Deposit for Non-Resident Taxable Persons
Non-resident taxable persons and casual taxable persons under GST are required to remit a deposit for GST registration. The amount of deposit for GST registration would equal the expected tax liability during the validity of the registration. Further, if a non-resident taxable person requests for extension of GST registration, they must deposit tax in advance based on the expected tax liability of the extension period.
Once a non-resident taxable person files the GST registration application, an application reference number is generated for payment of advance tax. On payment of tax, the electronic cash ledger of the taxpayer is credited, and a GST registration certificate is provided.
Final registration of Non-resident taxable person would be carried out in the same line as of the resident taxpayer in India. The procedure for the same is narrated below:
The applicant is required to submit, electronically, an application in FORM GST REG-26. The applicant is required to submit all the information related to tax and GST within three months from the provisional registration. If the information provided is accurate and complete, then, final GST registration will be issued to the applicant in FORM GST REG-06. However, if the information provided is incorrect or incomplete, the officer would issue a show-cause notice to the applicant in FORM GST REG-27. If the applicant is not able to give an appropriate reply to the show cause notice issued and after giving the appropriate opportunity of being heard to the applicant and on the satisfaction of the officer, the provisional registration granted to the applicant would be cancelled through FORM GST REG-28. However, if the applicant is able to give an appropriate reply to the show cause notice issued and the said reply is acceptable to the officer, the show cause notice would be nullified by issuing an order in FORM GST REG-20. The application for registration of the non-resident should be duly signed by the authorized signatory of the applicant. The said authorized signatory should be a person resident in India, and he would have a valid PAN.
Validity of GST Registration for Non-Resident Taxable Persons
GST registration for casual taxable persons and non-resident taxable persons are provided with a validity period. The validity period would be based on the request of the taxable person and the amount of GST deposit remitted. If a non-resident taxable person intends to extend the validity period of GST registration, they can make an application in FORM GST REG-11 before the validity of the registration.
Important Instructions for Non-Resident Taxpayers
Name of Applicant must be entered as per the passport. It is mandatory for the applicant to apply for GST registration on the common portal by filing form GST REG-09 at least five days before commencement of the business. Tax identification number / unique number (number through which the entity is identified by the respective Government) 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 applicant must be duly signed or verified through EVC. In case of NRI, in order to obtain GST registration, following a two-step procedure needs to be followed:
Provisional registration & Final registration
An application in Form GST REG-09 is required to be submitted, electronically, by the Non-resident taxable person (NRI). Self-attached copy of valid passport is to be submitted along with the application. Further, in the case of foreign entity, application for GST registration is to be submitted along with 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. Advance tax deposit is mandatory to be submitted along with the application.
Let’s understand these rules with the help of an example. Say, the company SpaceX Inc. based out of USA is manufacturing special class turbojet engines which are supplied to India for assembling. This is a one-time transaction for SpaceX Inc. and thus they have appointed an Agent Mr. Vidur in India to carry out all compliance related formalities. Mr. Vidur, in turn, is required to obtain registration for SpaceX Inc. by furnishing his own PAN number and pay advance taxes related to this transaction. Once the transaction is carried out successfully and the supply is made, SpaceX Inc. will need to file their GST returns and meet all GST liability from the advance tax paid at the time of registration. Any tax paid in excess will be refunded through the electronic mode.