GST Registration for Non-Resident Taxable Person
Updated on : March 20, 2023 - 6 p.m. 17 min read.
GST is an indirect tax system implemented in India to replace multiple taxes. It is a comprehensive tax system that has streamlined the taxation process in India. Under GST Non-resident taxable persons who supply goods or services in India but do not have a permanent establishment in the country are also required to register under GST. GST registration is crucial for NRTPs to comply with Indian tax laws and conduct their business operations legally in India. Explanation of GST registration for non-resident taxable person
Who is non Resident Person in GST
A non-resident person in GST is someone who supplies goods or services in India but does not have a place of business or a fixed establishment in the country. They are required to register for GST if they make taxable supplies in India.
Importance of GST Registration for non Resident taxable Person
- GST registration is mandatory for NRTPs to conduct business operations legally in India.
- It ensures compliance with GST regulations and avoids penalties.
- NRTPs can claim input tax credits and maintain proper records through GST registration.
Eligibility criteria for NRTP
The eligibility criteria for Non-Resident Taxable Persons (NRTPs) to register under GST in India:
- The individual or business must be a non-resident of India with no fixed place of business or residence in the country.
- The individual or business must occasionally supply goods or services or both in India, either as the principal or the agent or in any other capacity.
- The individual or business must not be registered under GST already.
- The individual or business must have a valid PAN or any other unique identification number assigned by the respective country of origin.
- The individual or business must appoint an authorized representative in India to act on their behalf for GST compliance purposes.
Documents required for GST registration for NRTP
- Passport - A copy of the passport of the NRTP is required to verify their identity.
- Proof of address - NRTPs must provide proof of address of their place of residence in their respective country of origin.
- Bank account details - NRTPs must provide their bank account details, including the name of the bank, branch, and account number.
- Letter of Authorization - NRTPs must submit a letter of authorization to their authorized representative in India, authorizing them to act on their behalf for GST compliance purposes.
- Business Registration Document - NRTPs must provide a document that proves their registration as a business in their respective country of origin.
- PAN Card - NRTPs must provide a copy of their Permanent Account Number (PAN) or any other unique identification number assigned by the respective country of origin.
Procedure for GST registration for NRTP
Step 1: Visit the GST portal - NRTPs can visit the official GST portal and select the 'New Registration' option to begin the registration process.
Step 2: Fill in the required details - NRTPs must provide details such as their name, address, email ID, mobile number, and PAN or any other unique identification number assigned by the respective country of origin.
Step 3: Upload supporting documents - NRTPs must also upload documents such as their passport, proof of address, bank account details, and a letter of authorization for their authorized representative in India.
Step 4: Pay the registration fee - NRTPs must pay the registration fee to complete the registration process. The fee can be paid online through the GST portal.
Step 5: Verification of registration application - The application for registration is verified by the GST department, and if there are any discrepancies, they will notify the NRTP for corrections.
Step 6: Receive GST registration certificate - Once the registration process is complete, the NRTP will receive their GST registration certificate, which they can download from the GST portal.
Validity and Renewal of NRTP Registration
Validity of GST registration for NRTPs
The GST registration for NRTPs is valid for a period of 90 days or the duration of the intended business, whichever is earlier. The validity of registration can be extended for an additional period of 90 days, upon submission of an application for extension at least 5 days before the expiry of the initial registration period.
Renewal of GST registration for NRTPs
NRTPs are not required to renew their GST registration, as the registration is valid for a specified period only. However, if an NRTP intends to continue business beyond the expiry of the initial registration period or the extended period, they must apply for a fresh GST registration before the expiry of the current registration.
Input Tax Credit for NRTP
Explanation of input tax credit
Input tax credit (ITC) is a mechanism under GST that allows taxpayers to claim a credit for the taxes paid on their purchases of goods or services. The credit can be used to offset the taxes owed on the sales made by the taxpayer. This reduces the overall tax liability and prevents double taxation on the same product or service.
Procedure for claiming input tax credit for NRTP
To claim Input Tax Credit (ITC) as a Non-Resident Taxable Person (NRTP) in India, follow these steps:
- Register for GST and obtain a valid GSTIN number.
- Purchase goods or services from a registered supplier who has filed their GST returns and paid taxes due.
- Keep valid tax invoices or prescribed documents for the goods or services.
- Claim ITC in the relevant GST return.
- Ensure ITC claimed matches supplier details in their GST return.
- File all GST returns on time to claim ITC within the specified time limit.
Threshold limit for NRTP
The threshold limit for Non-Resident Taxable Persons (NRTPs) under GST refers to the maximum turnover limit up to which an NRTP is not required to register for GST in India. The threshold limit for NRTPs is INR 20 lakhs for the supply of taxable goods or services. However, if an NRTP is engaged in making taxable supplies in India, they are required to register for GST irrespective of their turnover. Additionally, NRTPs are also required to pay tax on a reverse charge basis for certain goods and services. It is important for NRTPs to understand the threshold limit for GST registration in India to avoid any penalties for non-compliance with the GST regulations.
In conclusion, NRTPs must ensure that they have all the necessary documentation and comply with GST regulations while applying for and during the validity period of their GST registration. This will help them avoid penalties and cancellation of their registration and enable them to conduct their business smoothly in India.