GST (Goods and Services Tax) replaces indirect taxes such as VAT, excise duty, and services tax. It is a levy on the supply of goods and services. A non-resident taxpayer has to register under GST for doing business in India. The registration is to be obtained within five days before commencing the business. All non-resident taxpayers must obtain GST registration who do transactional activities related to goods and services. NRI doesn’t have the option to pay taxes under the composition scheme. These taxpayers have their tax identification numbers based on their country. These taxpayers have to obtain GST registration irrespective of turnover which can be done by GST Registration Online.
Conditions to be fulfilled
Some conditions have to be fulfilled by NRI before registration:
- The applicant should have an authorized signatory in India having a valid PAN card, valid Indian mobile number, and valid e-mail address & the applicant should have a PAN/Tax Identification number through which the entity is identified.
- The applicant should have all prescribed documents needed for registration.
- The applicant should have an identified place of business in the state at registration.
Procedure for GST registration
- An application in FORM GST REG-09 has to be given by NRI for registration.
- The application must be supported by a certified copy of the applicant’s valid passport.
- A tax identification number or unique identification number provided by the government has to be submitted along with the application if the business identity is incorporated outside India.
- The application must be made within five days before commencing the business.
- It shall be submitted on the common portal of GST.
- An authorized signatory shall duly sign the registration form.
- An advance tax deposit must accompany the application.
Advance tax deposit
While applying for registration, an amount equal to an estimated tax liability of the period of registration must be made as an advance deposit of tax which can be further increased equivalent to the tax liability of the increased period in case of extension of the validity period of registration certificate. These deposits are shown in the electronic cash ledger of Non-Resident Tax-Payers.
If any discrepancies are found in the application, then the same has to be communicated in FORM GST REG-03 to the applicant, and the applicant is required to submit a reply in FORM GST REG-04.
GST Registration Certificate
After registration, a certificate with a validity of 90 days is issued in FORM GST REG-06 along with GSTIN unless any shorter duration is mentioned while applying for registration. The validity of the registration certificate can be extended by another 90 days by the concerned GST officer on request.
At AJSH, we assist our clients with various GST matters (GST registration, GST advisory, GST assessments, filing of GST returns, claiming GST audits) by providing them wihth adequate support and guidance from our end, if you have any questions or would like to know more about GST registration for NRI, kindly contact us.