GST Registration Process in India – A Complete Guide to NRIs
The Goods and Services Tax (known as GST for short), is an indirect tax that is imposed on the supply of goods & services in India. There were various indirect taxes in place in the past, and the GST has replaced all of them. GST is a multi-stage, destination-based tax that will be imposed with every value addition to the goods or services. Three taxes come under the GST and is being levied currently. These taxes are
CGST: Obtained by the Central Government on an intra-state sale (Eg: Within Punjab)
SGST: Collected by the State Government on an intra-state sale (Eg: Within Punjab)
IGST: Obtained by the Central Government for inter-state sale (Eg: Punjab to Gujarat)
Some of The Benefits of The New GST Tax Regime Are as Follows:
- Simpler, online procedures
- Lesser compliances
- Removing the cascading tax effect
- Composition scheme for small businesses
- Regulating the unorganized sector
Who Is A ‘Non-resident Taxable Person’?
The GST Act defines a ‘Non-resident Taxable Person’ as someone who occasionally makes transactions involving the supply of goods or services and has no fixed place of business or residence in India. Thus, in effect, all businesses that render services or goods to India but operate from outside India will fall under this category.
Section 24 of the GST law defines that the Non-resident taxable person has to register for GST. It mentions several entities who have to compulsorily register, irrespective of whether they fall under the threshold of INR- 20 lakhs rupees. Thus, if your company wants to do a one-time transaction or is frequently associated with transactions in India, you will have to register under the GST regime as per section 24 of GST.
Provisional GST Registration Process For NRI
A non-resident taxable person can apply electronically, in order to register. It can be done using the FORM GST REG-09 along, with a self-attested copy of your valid passport.
The application needs to be duly signed or verified through EVC.
It must be submitted at least five days before the start of your business.
In case, of a foreign business entity (incorporated or established outside India), then the application for registration must be submitted, with the tax identification number of that country (similar to our Permanent Account Number) or its PAN number, if it has one.
An advance deposit of tax (based on estimation) need to be submitted along with the application.
Final GST Registration Process For NRI
The final registration process is the same as that of Indian Residents. The procedure for the final registration is as follows:
- If a person wants to register under GST, then he/she should submit an application electronically using the FORM GST REG–26. All information must be provided within a period of three months.
- If the information is accurate and complete, the final GST registration will be given in FORM GST REG-06.
- If the information is not correct, then the officer will issue a show-cause notice using FORM GST REG-27. A reasonable opportunity of being listened will be given, after which the provisional registration will be eliminated through the FORM GST REG-28.
- If the applicant’s reply is satisfying, then the show-cause notice issued can be canceled by issuing an order via the FORM GST REG- 20.
- The request for registration made by a non-resident will be signed by authorized signatory, who must be a person resident of India with a valid PAN Card.
Now, you should have a clear picture of what is GST, the GST provisions applicable to NRI, and the tax implications of GST bill to NRI. As you can see, the requirements relating to NRIs are not extremely complex. Further, we also hope that now you are clear regarding the GST registration process for NRI. If you still have doubts, feel free to contact us. However, we suggest that if you are very confused, you must consult a certified Chartered Accountant (CA) to get all the procedures completed correctly and in due time.
The Goods and Service Tax Act has been passed in the Parliament, on 29 March 2017. The Act was put into force on 1 July 2017. In this new tax regime, while there are several benefits, it has also led to a lot of confusion regarding GST registration process and GST rules for NRI.
The rules and regulations are being continually updated, as the Indian economy deals with tremendous change in its taxation policy. We have received several inquiries from NRIs regarding the GST provisions applicable to NRI, and the implications of the GST bill on NRI. Read guidelines that will help you not only to understand what GST is but will also help you know the GST registration process for NRI and the tax implication of the GST bill on NRI.