NRIs under GST: Do NRI’s need GST Registration in India?

Ashish M. Shaji

05 Jan, 2021

In this article, we are going to talk about the registration requirements for NRIs under GST laws. But first, let’s try and understand what we mean by Non-Resident Taxable Person.

Under Central Goods and Service Tax, 2017 they are defined as “any person who occasionally undertakes transactions involving the supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India”. They are located outside India and are not regular traders. To read more about this topic, you can refer to our blog on Non-Resident Taxable Person.

Their nature of occasional trading makes it hard for the authorities to track their transactions. Therefore different registration provisions are given in the Act for them.

Read our article: Non-Resident Taxable Person under GST: Legal Definition

Who Should Register?

In today’s world, anybody who is looking to expand their business is aiming to enter the global market. Indian market is also a very lucrative area of business for many. However, if anyone wishes to do business in India, then GST registration is a must for them.

If any non-resident is involved in regular business either as principal or through an agent and has a place of business inside India, then registration requirement for NRIs under GST arises.

On the other hand, if any non-resident willing to do any business which is not done in the normal course of their business and doesn’t have a place of business inside India, then their registration requirements are a little different.

NRIs under GST: Pre-conditions to be fulfilled

A Non-Resident Taxable Person is required to satisfy the following conditions before GST Registration:

• The applicant should have authorized signatory in India with valid details;
• The authorized signatory should have a valid PAN;
• The authorized signatory should have a valid Indian Mobile number;
• The authorized signatory should have a valid e-mail address;
• The applicant should have PAN/Passport/Tax Identification Number or Unique Number on the basis of which the entity is identified;
•  The applicant should have the prescribed documents and info. on all mandatory fields needed for registration;
• The applicant should have identified a place of business in that state for the registration period.

NRIs under GST: Registration Provisions for Non-Resident taxable Person

Rule 13 under the head of Registration of CGST^[1] Rules provides the provisions relating to registration of Non-Resident Taxable Person.

• These rules state that an application for registration by a non-resident taxable person can be given in FORM GST REG-09.
• This application shall be accompanied by a certified copy of the valid passport of the applicant.
• If the business identity making the application is incorporated or established outside India, then Tax Identification Number or any other Unique Identity No. issued by their government shall also be submitted along with the application for registration.
• This application must be made at least 5 days before the commencement of business in India.
• This application shall be submitted on the Common Portal of GST either directly or through any Facilitation Centre notified by the Commissioner.
• The registration form shall be duly signed or verified by any authorized signatory through an Electronic Verification Code. This authorized signatory must be a resident of India and have a valid PAN No.
• This application must be accompanied with an advance deposit which shall be equal to the estimated tax that they will incur during the course of their business.

Verification and Registration

After an application is made, and all the conditions stated in Rule 13 is complied with, the rules regarding verification and grant of registration specified in Rule 9 and 10 respectively will apply to it, like any other application received under normal circumstances.

Such an application is to be duly verified and if any discrepancies are found in the application then they are required to be communicated to the applicant in FORM GST REG-03, and the applicant will be required to submit a reply in FORM GST REG-04.

If the authorities are satisfied then GSTIN is to be issued along with a registration certificate to the non-resident taxable person in FORM GST REG-06. And if the application is rejected then this rejection is to be communicated in FORM GST REG-05, and reasons for such rejection are to be recorded in writing.

Conclusion

India being an attractive market, many NRIs are looking forward to do business here. If you are a Non-Resident Indian and are planning to do business in India, then GST Registration is a must. In case of any query regarding the laws related to NRIs under GST, contact Enterslice.

Read our article: Notice Pay Recovery: Is Liable for GST?