GST on NRIs

How does GST affect me: I am an NRI?

If you are importing goods or services from outside India or managing a business in India on behalf of a person resident outside India or if you are a non-resident, then this article is relevant for you.

Who is a ‘Non-Resident Taxable Person’?
As defined in the Goods and Service Tax Law, any person who occasionally undertakes transactions involving the supply of good 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.

Section 24 of the GST law states the requirement for registration for a non-resident taxable person. It also specifies the businesses and entities that are mandatorily required to register under GST and are not concerned by minimum threshold limit of Rs. 20lakh/10lakh. Therefore, whether you make a one-time transaction or regular taxable transactions, every non-resident will have to be registered under the Goods and Service
Tax.

Procedure of Registration for a Non-Resident Taxable Person:
Provisions related to registration of a Non- Resident Taxable person are given in Rule 13 under the head of Registration of CGST Rules.

1.  An application for registration is to be made by a non-resident taxable person in FORM GST REG-09.
2.  A certified copy of the valid passport has to be submitted along with the application.
3.  The company must submit its tax identification number or any other unique identity no. issued by their government (of its original country).
4.  The said application must be made at least 5 days prior to the commencement of business in India.
5.  The application can be submitted directly on the common portal of GST or through any facilitation center notified by the commissioner.
6.  The registration form shall be duly signed by an authorized signatory who must be a resident of India and have valid PAN, through an Electronic Verification Code.
7.  The application must be submitted along with an advance deposit that shall be equal to the estimated tax that they will incur during the course of their business.

Verification and Registration

After application is made under Rule 13 then rules regarding verification and grant of registration in Rule 9 and 10 respectively will apply to it just like any other application received under normal situation.
The application is duly verified and if any discrepancies are found in the form then they are to be communicated to the applicant in FORM GST REG-03 and the applicant shall reply in FORM GST REG-04.

On satisfaction, the authorities will issue GSTIN along with a registration certificate to the non-resident taxable person in FORM GST REG-06. In case the application is rejected then it should be communicated in FORM GST REG-05 and reasons for such rejection should be recorded in writing.

In case a non-resident person intends to extend the period of registration, an application under FORM GST REG-11 should be submitted electronically through Common Portal before end of the validity of registration initially granted to him.

Content Source – India Law Offices

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