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.

This article will clear your doubts regarding the process for GST registration in India.

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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.

  • 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.

  • 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.

  • 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.