What is GST registration for foreigners?

What is GST registration for foreigners?

GST registration for foreigners is necessary for the non-resident taxable persons who are making taxable supplies in India. With India emerging as an economic powerhouse, a lot of non-resident Indias are willing to set up business in India. Hence, a non-resident taxable person has to apply for GST registration if he is undertaking transactions involving the supply of goods or services or both.

Hence, an individual who is staying abroad or a foreign business or an organization that is supplying foods or services in India is considered as a Non-resident taxable person who has to comply with all the regulations under the Goods and Service Law Act. The non-resident taxable person must appoint a nominee in India who can undertake the compliances on their behalf in accordance with the GST regulations. GST registration by the foreigners is to be obtained 5 days before commencing with the business.

Why GST registration?

The Goods and Services Tax Act was introduced by the Indian government, to subsume different types of taxes levied at the Central or State level such as Service Tax, Luxury Tax, VAT, entertainment tax, etc, and a consolidated structure is offered under the GST Act. Here, a non-resident India who undertakes transactional activities that are relevant to services and goods should also register as a taxable person under GST.

The Goods and Service Tax Law has improved the ease of doing business. The complexities of tax have reduced as the GST has subsumed multiple taxes into a single simple system.


Who can register as a non-resident taxpayer under GST in India?

Irrespective of the turnover a non-resident taxable person is required to obtain GST registration in India. Here it should be noted that all the non-resident taxpayers are required to obtain the GST registration five days before commencing with the business activity.

It is better if the foreign business that is supplying the goods and services gets the GST registration at the earliest. It is to be noted that the NRI cannot exercise the option to pay taxes under the composition scheme.
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A business entity that is incorporated or established outside India that is making the supply of taxable goods and services is required to obtain the GST registration in India his tax identification number will be based on the country.

Documents required to obtain the GST registration

GST registration for a non-resident taxable person requires the submission of the following documents.
  • 1

    Principal place of business proof

    • For own business- Any document that is supporting the ownership of the premise like the latest tax property or the municipal khata or the copy of the electricity bill.
    • For rented or leased premises- A copy of the valid rent or lease agreement with any document that is 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 a document supporting the ownership of the consenter's premises like the municipal khata or the electricity bill copy. Even for shared properties, the same documents can be uploaded.
  • 2

    Identity Proof

    It is necessary to submit the scanned copy of the passport of the Non-resident taxable person with the VISA details. In the case of a business entity that is incorporated or established outside India the application for the registration, it should be submitted along with the tax identification number or the unique number that is based on which the entity is identified by the government of that country or the PAN if it is available.

    • In the case of the Company/ Society / LLC/ FCNR etc, a person holding the attorney power with the authorization certificate.
    • A scanned copy of the incorporation certificate of the company is registered outside India or in the country.
    • Scanned copy of the license that is issued by the foreign country if it is available.
    • Scanned copy of the clearance certificate that is issued by the Government of India, if available.
  • 3

    Bank Account proof

    Scanned copy of the first page of the bank passbook or one page of the bank statement, the opening page of the bank passbook held in the name of the business that contains the Account number, name of the account holder, MICR, IFSC code, and branch details.

How to obtain the GST registration for foreigners?

  1. The applicant has to submit the GST REG 09 to apply for GST registration in India. To apply for GST registration, foreign businesses, or applicants it is first necessary to identify the person in India to act as the authorized representative for the GST compliance and the PAN ( which is optional).
  2. The Goods and services tax law states that a GST application should be made by the non-resident taxable person should be signed by the authorized signatory who should be a person residing in India with a valid PAN.
  3. Once the authorized signatory is appointed the GST registration can be processed for the non-resident taxable person. For the regular taxpayers, the GST registration is based on the PAN but for the non-resident taxable person, it is necessary to submit the Tax Identification Number or the Unique Number based on which the entity is identified by the Government of that country or the PAN.

Authorization of Authorized representative in India.

A non-resident taxable person is required to appoint an authorized representative in India. An authorization or the copy of the resolution of the managing committee or the Board of Directors that is authorizing the authorized representative is to be provided in the following formats.
Authorisation for Authorised Representative in India

Provisional GST Registration for Foreigners

  1. A non-resident taxable person will file the application electronically using the Form GST REG 09 with the self-attested copy of the valid passport.
  2. The application for GST registration is to be duly signed or verified through the EVC. This application is to be submitted at least five days before the commencement of business.
  3. In case it is a foreign business that is incorporated or established outside India then an application for registration has to be submitted along with the Tax identification number of the country which is similar to our PAN Card.
  4. An advance deposit of the tax is also to be submitted with the application.
Final GST registration for Foreigners
  1. If the person is willing to register under the GST then he will have to submit an application electronically using the Form GST REG 26. The information is to be furnished within three months.
  2. If the information is correct and then the final GST registration to the Non-resident taxpayers will be given in Form GST REG 06.
  3. At a time when the information is not correct then the officer is required to issue a show-cause notice using the Form GST REG 27. An opportunity will be given after which the provisional registration will be cancelled through the Form GST REG 28.
  4. If the applicant's reply is satisfactory then a show-cause notice issued can be nullified by issuing an order in the Form GST REG 20.
  5. This application that is made by the non-resident person will be signed by the authorized signatory who is a person residing in India with a valid PAN Card.
For More Info visit TAXAJ                                                                                  Posted By:- Anuj (Team Taxaj)

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