GST Registration for foreigners

Goods and Services Tax or GST has been implemented in India from 1st July, 2017 and non-resident taxpayers are also required to obtain GST registration and file GST returns. Foreign non-resident taxpayers are mandatorily required to obtain GST registration in India if they supply goods or services to residents in India. According to the GST Act, "non-resident taxable person” means any person who occasionally undertakes transactions involving 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. Further, all non-resident taxable persons are required to appoint an authorised person in India for the purpose of complying with GST regulations.
History

  • 2000 – PM Vajpayee setup a committee to draft a GST law.
  • 2004 – A task force concludes GST must be implemented to improve current tax structure.
  • 2006 – Finance minister proposes GST introduction from 1st April.
  • 2007 – CST to be phased out. Rate reduced from 4% to 3%.
  • 2008 – EC finalised dual GST structure to have separate levy, legislation.
  • 2010 – Project to computerise commercial taxes launched but GST implementation postponed.
  • 2011 – Constitution amendment bill to enable GST law introduced.
  • 2012 – Standing committee begins discussion on GST but stalled it over clause 279B.
  • 2013 – Standing committee tables its report on GST.
  • 2014 – GST bill reintroduced in parliament by finance minister.
  • 2015 – GST bill passed in Lok Shaba but not passed in Rajya Shaba.
  • 2016 – GSTN go live.
  • 2016 – Amended modal GST law passed in both house of parliament. President give assents.
  • 2017 – Four supplementary GST bill passed in Lok Shaba and approved by Cabinet. Rajya Shaba passes four supplementary GST bill. Final GST to implemented on July 1,2017.

GST Registration U/S22
  1. Meaning
    All business whose turnover is above Rs.20 lakh or Rs.10 lakh (for north eastern states) are expected to do GST registration as a regular taxable person.
  2. Mandatory
    Mandatory for following persons:
    • Non-Resident taxable individuals.
    • Entities engaging in E-Commerce.
    • Entities supplying goods & services via E-Commerce operators.
    • Individual who are eligible for TDS.
    • Entities engaging in the provision of online information or retrieval services or database access.

Type of GST

  1. CGST
  2. Applicable in terms of intra-state sales. CGST is collected by central government.
  3. SGST
  4. Applicable in terms of intra-state sales. SGST is collected by respective state government.
  5. UTGST
  6. Applicable for transactions taking place in a union territory. UTGST is collected by respective union territory government.
  7. IGST
  8. Applicable in terms of inter-state sales. IGST is collected by central government.

Documents Required

Document Required for GST Number

  1. Proof of Place of business (Incorporation certificate)
  2. PAN Card of the Business and Applicant
  3. Valid Indian Phone Number and Email address.
  4. Proof of Place of business( Rent Agreement, Electricity bill etc.)
  5. Valid bank account number from India (Cancelled check of firm with Authority signature) Other details.
  6. List of Goods and Services
  7. Proof of appointment of Authorized Signatory (Letter of Authorization or copy of board resolution)
  8. Authorized Signatories photo (soft copy)
  9. For Companies and LLP’s, it is important to have digital signature (class 2 digital signature) of the person who is authorised to sign the GST application
  10. Other regulatory registration details such as Professional Tax, State Excise License details (If applicable)

Time

GST registration about 7-10 working days.

Registration Procedure

  1. Login
    • Login to www.gst.gov.in
    • Click on the ‘services’ tab on the menu at the top of the page.
    • You will have three options viz. ‘Registration’, ‘Payments’ and ‘user services’
    • Click on ‘Registration’ and select ‘New Registration’.
  2. Part-A
    • Login to www.gst.gov.in
    • You will be redirected to a new page wherein you will have to select whether you are a taxpayer or a GST practitioner. This is basically Part-A of the form.
    • The details you have entered will have to be verified by the portal, you will receive an OTP or an e-mail for confirmation
    • Based on the kind of business you are running; you will be required to upload a few documents as requested.
    • Click on ‘Registration’ and select ‘New Registration’.
  3. Part-B
    • Part-B of the form will then have to be filled in with a few details after which you will receive the ARN though email or SMS.
    • Your application will then be verified by a GST officer and it could either be approved or you will be requested to provide some more details or documents until the authorities have all the required information to approve your application.

FAQ's

    All foreign companies that have obtained GST registration are required to file Form GSTR-5 through the GST Common Portal or a GSP. Like other taxpayers registered under GST, the GST return filed by foreign companies must include details of outward supplies and inward supplies.

Foreign nationals are individuals who are not citizens of India. Income and capital gains earned by a foreign national in India is taxable under the Income Tax Act.

    NRI or not, every individual must file a tax return if their income exceeds Rs 2,50,000. But note that NRIs are only taxed for income earned/collected in India. So, Rahul will pay taxes on income earned while in India, and income accrued from FDs and savings account.

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