GSST registration for NRI

GST Registration Process for NRI

Last Update Date : May 06, 2019
Estimated Read Time: 4 min

GSST registration for NRI

Of course, GST registration norms pertain to Indian residents? But what about GST registration for NRI who do business in India? India is an exceedingly attractive market for non-residents to do business and invest in. Are you a non-resident who has plan to set up a business in India? Well, if yes, then you must register under GST. It is mandatory to opt for GST registration for any NRI irrespective of their turnover.
Further, GST registrations have also been made mandatory for all those e-commerce operators who provide online information and database access or retrieval services to a person in India from a place outside the India. Here, e-commerce operators include Non Residents, Registration by agent supplying goods, Input Service Distributor, and those selling through e-commerce operators.

According to the Indian GST Act of 2017, a non-resident foreign taxpayer is the person or company which is engaged in making taxable supplies of products/services or both in any place of India through any means, but has no fixed location of business/service or residence in India.

If we specifically talk about GST registration for NRI, s/he has to fill up the respective registration forms:

  • GST REG-09– Application for Registration of Non-Resident Taxable Person
  • GST REG-10– person supplying online information and data base access or retrieval services from a place outside India to a person in India

Instructions to File Application for GST Registration for NRI

  • Enter name of the applicant (Non-Resident taxpayer) as mentioned in their passport.
  • The applicant shall apply for registration on GST portal, using the form GST REG-09 at least Five days prior to commencement of the business.
  • At the time of online application, the applicant is required to provide email Id and mobile number for verification and future communication. Both will be verified through OTPs (One Time Passwords) sent separately for each, prior to filling up Part-B of the application.
  • Further, in case business declares an individual as Authorised Signatory, the applicant need to upload scanned copy of the declaration signed by the Proprietor/all Partners/Karta/Managing Directors and whole time Director/Members of Managing Committee of Associations/Board of Trustees etc.
  • Application filed must be duly signed or verified through EVC (electronic verification code), a new mode of electronic verification based on Aadhaar Card.

Note: NRI (if it is a company) must submit its tax identification number of its original country (or whatever that is equivalent of PAN in that country). A non-resident taxable person cannot exercise the option to pay tax under composition levy.

Pre-requisites to Obtain Registration

  • NRI has to apply for registration at least five days prior to commencing his business in India using a valid passport.
  • Not required to have a PAN in India.
  • A business entity incorporated or established outside India, has to submit the application for registration 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 its Permanent Account Number, if available.

The GST registration provisions and applicable forms, for NRI to comprehend the requirements for GST filing, are furnished below:

Provisional Registration

If you are already a tax payer, the provisional ID and password for the GST registrations will be provided with a unique provisional ID and password by their tax officers. These are mandatory requirements for enrolling for GST and are required to log into the GST portal. Requirements to obtain provisional registration are as follows:

  • A non-resident taxable person need to submit registration application electronically using the FORM GST REG-09 along with a self-attested copy of applicant’s valid passport.
  • The application must be either duly signed or verified through EVC.
  • Application for GST registration must be submitted on GST portal at least five days prior to the commencement of business.
  • In case, it is a foreign business entity (incorporated or established outside India) the application for registration shall be submitted along with its tax identification number (TIN) of that country (similar to Indian PAN) or that country’s PAN (if it has one).
  • A non-resident taxable person has to make an advance deposit of tax equivalent to his estimated tax liability for the period for which the registration is taken.

Final Registration

Final registration will be made in the same way as in the case of resident taxpayers as follows:

  • If the person wishes to register under GST, s/he need to submit an application electronically using the FORM GST REG–26. Any information related to tax and GST must be providedwithin a period of three months from the provisional registration
  • In case the information provided in the first place is correct and complete, the final GST registration will be issued in FORM GST REG-06.
  • On the other hand, in case the information provided in the first place is incorrect or incomplete, the officer would issue a show-cause notice using FORM GST REG-27.
  • A sensible prospect of being heard would probably be allowed post which the provisional registration will be cancelled through the FORM GST REG-28.
  • On a positive note, if the applicant’s reply is acceptable, the issued show cause notice can be nullified by issuing an order via the FORM GST REG- 20.
  • The application for registration made by a non-resident will be duly signed by his authorized signatory who must be a person resident in India with a valid PAN.

The non-resident taxable person can make taxable supplies only after the issuance of the certificate of registration. The certificate of registration shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.

earlyGST offers you a variety of services like GST Registration, GST return filing, Reconciliation, Advisory on tax related matters etc. We can help the NRIs with their Registration and return filing. earlyGST ensures timely and accurate compliance and makes GST easy to go with.

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CA Chetan Shinde
CA Chetan Shinde
Chetan is the Lead Tax Advisor at H&R Block (India) with an experience of almost half a decade in audit and taxation. His professional areas of interest are GST advisory and statutory audit. Apart from taxation, he is passionate about social causes and works extensively towards rural school development and literacy.