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GST Registration for Foreigners in India: Overview
Over the past two years, India's GDP has been growing at a commendable pace. India's economy, which is among the fastest-growing in the world, is attracting businesses from around the globe. The growth has opened doors for foreign companies, investors, and entrepreneurs who are looking to explore new potential in India's dynamic market. Many international companies are currently growing their business in India as a result of government policies and initiatives. Establishing operations, selling goods, rendering services, and adhering to Indian tax regulations are all crucial components of conducting business in India.
Under the Goods and Services Tax (GST) regime, GST registration is one of the most important prerequisites. Any foreign business that supplies goods or services in India, whether directly, through an agent, or via e-commerce, is mandated to register for GST before starting operations. Under the GST Act of 2017, foreign businesses fall under the category of Non-Resident Taxable Person (NRTP). Unlike domestic businesses, non-residents must appoint an authorized representative in India and deposit an advance tax payment before registering.
What is GST Registration?
The process of acquiring a Goods and Services Tax Identification Number (GSTIN), which enables companies to collect and send GST to the Indian government lawfully, is known as GST registration. Business firms that surpass the prescribed turnover for some categories—such as import-export companies, e-commerce operators, and non-resident taxable people (NRTPs)—are required to do so. The Central Goods and Services Tax Act, 2017 (CGST Act) governs GST registration in India.
Who Needs GST Registration in India?
Under the GST Act 2017, businesses and individuals who are engaged in the supply of goods or services have to register for GST if they meet specific eligibility. Registration is mandatory for:
- Businesses Exceeding the Turnover: Businesses with annual turnover exceeding ₹40 lakhs (for goods) or ₹20 lakhs (for services). In special category states, thresholds are ₹20 lakhs (goods) and ₹10 lakhs (services).
- Mandatory GST Registration Categories:
- Interstate suppliers
- Casual taxable persons
- E-commerce operators
- Reverse charge recipients
- Input Service Distributors
- Agents making taxable supplies
- Foreigners & Non-Resident Entities:
- NRTP: Foreign entities supplying in India without a fixed place of business.
- OIDAR Providers: Digital service providers to Indian customers.
- Importers of Services: With tax paid by Indian recipient under RCM.
- Online Gaming Suppliers: Providing services from outside India.
- Trade Fair Participants: Temporary registration valid for 90 days.
Benefits of GST Registration in India
- Legal Operations of Business: Avoids legal issues and ensures compliance.
- Seamless Trade Access: Direct access to Indian market and consumers.
- Input Tax Credit (ITC) Benefits: Claim GST on inputs and services used in India.
- Avoid Penalties: Timely registration prevents fines and restrictions.
- Enhanced Credibility: Builds trust with customers and authorities.
- Eligible for Refund: Claim tax refunds on exports and excess payments.
Documents Required for GST Registration for Foreigners
Foreign businesses intending to register under the Goods and Services Tax (GST) regime in India must submit specific documents for verification. These documents establish the identity, address, and operational credentials of the foreign entity or individual, ensuring compliance with Indian tax laws. Below is a comprehensive list of the required documents:
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Identity and Business Proof:
- Notarized and apostilled copy of the applicant’s passport (for individuals).
- Certificate of Incorporation issued by the home country’s regulatory body (for companies).
- Tax Identification Number (TIN) or equivalent issued by the foreign tax authority.
-
Business Registration Proof:
- Foreign business license or any government-issued certificate proving business existence.
- Memorandum of Association (MOA) and Articles of Association (AOA), if applicable.
-
Address Proof:
- Lease agreement or recent utility bill of the Indian office, if available.
- In the absence of an Indian office, address proof of the overseas headquarters.
-
Bank Account Details:
- Indian bank account statement (if applicable) or foreign bank account details.
- Canceled cheque or a bank certificate confirming account ownership and details.
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Authorized Signatory Documents:
- Letter of authorization or appointment of an Indian resident as the authorized signatory.
- PAN and Aadhaar Card of the authorized signatory (for Indian citizens).
- Digital Signature Certificate (DSC) of the authorized signatory (for corporate filings).
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GST Registration Form:
- Duly filled Form GST REG-09 for non-resident taxable persons.
By ensuring all necessary documents are valid, authenticated, and properly submitted, foreign businesses can streamline their GST registration process and commence operations in India in full compliance with local tax laws.
GST Registration Process for Foreigners in India
The Goods and Services Tax (GST) registration process for foreign businesses in India requires adherence to specific procedures to ensure compliance with Indian tax laws. Follow the detailed steps below for a seamless GST registration experience:
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Check the Type of Registration
Foreign entities must first identify the correct category under GST:
- Non-Resident Taxable Person (NRTP): For foreign businesses that supply goods or services in India without a permanent place of business. Use FORM GST REG-09 for registration.
- OIDAR (Online Information Database Access and Retrieval Services): For foreign service providers offering digital services (e.g., online streaming, software downloads, or cloud-based platforms) to Indian customers. Use FORM GST REG-10 for registration.
-
Appoint an Authorized Representative in India
Since foreign businesses do not have a physical presence in India, they must:
- Appoint an Indian tax representative to manage GST compliance.
- This representative will handle filings, tax payments, and official correspondence with Indian tax authorities.
- The GST Registration application for NRTPs must be duly signed or verified electronically by the authorized signatory.
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Gather the Documents
Foreign businesses must submit the following documents for GST registration:
- Valid passport and proof of business activity of the individual.
- For companies: Certificate of incorporation from the home country.
- Tax Identification Number (TIN) or equivalent.
- Indian bank account details (if available).
- Address proof (if applicable, for business operations in India).
- Authorization letter appointing an Indian representative as the authorized signatory.
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File GST Registration Application (Form GST REG-09)
The application must be submitted online via the GST portal (gst.gov.in). Along with Form GST REG-09, all required documents must be uploaded at least 5 days before the commencement of business in India. Upon submission, the portal generates a Temporary Reference Number (TRN) for tracking.
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Payment of Advance Tax
Foreign businesses must pre-deposit GST based on their estimated tax liability. The amount will be credited to their GST ledger and adjusted against actual tax dues.
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Verification and Issuance of GSTIN
A GST officer will verify the application and the provided documents. If everything is in order, a GSTIN (Goods and Services Tax Identification Number) will be issued, allowing the business to legally operate under GST in India.
Exemptions and Special Considerations
Certain foreign businesses may be exempt from GST registration under specific provisions:
- Diplomatic and International Organizations: Foreign embassies, consulates, and UN bodies are exempt from GST registration.
- Foreign Entities with Indian Subsidiaries: If a foreign company operates through an Indian subsidiary, the Indian company is responsible for GST registration.
- Temporary Exemptions for Trade Fairs and Exhibitions: Some temporary foreign exhibitors may be granted GST exemptions, depending on the nature of the transaction.
Compliance and Filing Requirements
Foreign businesses registered under GST must adhere to specific compliance and tax filing obligations:
- Monthly GST Return Filing (GSTR-5): Submit details about taxable transactions, tax collected, and ITC (Input Tax Credit) claims.
- Advance Tax Payment: Pre-deposit GST payments as per the estimated tax liability.
- Timely GST Payments: Ensure timely GST payments on or before the 20th of the following month to avoid penalties.
- Record Maintenance: Maintain records of transactions, invoices, and tax payments as per Indian tax laws.
- Compliance with GST Notices: Respond promptly to any GST-related notices or communications.
Why Choose Kanakkupillai for GST Registration for Foreigners in India?
Registering under GST in India can be a complex process for foreign businesses, but with the right partner, it becomes seamless. Kanakkupillai offers a hassle-free GST registration process with expert guidance. We provide:
- Tailored Solutions: We offer a structured GST registration approach based on your specific business needs, whether you're an e-commerce operator, service provider, or foreign exhibitor.
- Expertise in International Taxation & GST Compliance: Our team of professionals ensures your registration is compliant with Indian tax laws and GST framework.
- End-to-End Support: From document preparation to application submission and liaising with tax authorities, we manage the entire process for you.
- Timely Registration: We ensure your GST registration is completed within the stipulated timeline, keeping your business operations on track.
- Transparent Pricing: We offer clear, affordable pricing with no hidden charges, ensuring value for your investment.
- Reliable Partner for Foreign Businesses: With years of experience, we provide trusted solutions for foreign businesses to operate smoothly in India.
With Kanakkupillai, you can confidently navigate the GST registration process and focus on growing your business in India.
Frequently Asked Questions
Is GST registration mandatory for all foreign businesses in India?
GST registration is required for foreign entities supplying taxable goods or services in India, except those exempted under special provisions.Can a foreigner apply for GST registration without an Indian business entity?
Yes, foreign businesses can register as Non-Resident Taxable Persons (NRTPs) without establishing an Indian subsidiary.What is the validity of GST registration for a foreigner?
NRTP GST registration is valid for 90 days and can be extended upon request.Can foreign companies claim GST refunds in India?
Yes, foreign businesses can claim GST refunds on input tax credits or excess tax paid under specific conditions.Do foreign businesses need a permanent establishment in India for GST registration?
No, foreign businesses without a permanent establishment can register under GST as NRTPs.Can foreign e-commerce platforms sell to Indian consumers without GST registration?
No, foreign e-commerce entities providing digital services to Indian consumers must register under the OIDAR category.Is GST registration required for short-term business activities in India?
Yes, temporary business activities such as trade fairs require temporary GST registration.What happens if a foreign business stops operations in India?
The business clears any pending tax dues and files cancellation request.We Provide Best Quality
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