Step by Step guide on GST Registration Process for Foreigners and Eligibility Criteria

India has a lot of business potential, which is what encourages Foreigners and NRIs to come in and set up their business in India. Non-Residents, on the other hand, who wish to supply products or services, or both, on a temporary or permanent basis, directly or indirectly as agents or in any capacity, must register for GST (Goods and Service Tax). The non-resident taxable person must additionally appoint someone in India to handle their GST Obligations. In this article information on GST Registration for Foreigners, GST for Overseas Services in India, the Registration Process of GST in India, and the Embassy of Foreign Country GST Registration is included.

What is GST (Goods and Service Tax)?

The Goods and Services Tax Act was enacted by the Indian government to bring together several types of taxes levied at the federal and state levels, such as Service Tax, VAT, Luxury Tax, Amusement Tax, and others, under a single consolidated structure. Non-Resident Indians who engage in transactional operations related to services and goods should register as taxable persons under GST. The Goods and Service Tax Act has made doing business easier. The GST has simplified taxation by combining several levies into a single, basic system.

About GST Registration for Foreigners

For non-resident taxable persons who make taxable supplies in India, GST Registration is required. With India’s rise as an economic powerhouse, many non-resident Indians are eager to establish businesses in the country. As a result, whenever a non-resident taxable person engages in transactions involving the supply of goods or services, or both, he must register for GST.

As a result, a person who is residing outside of India, as well as a foreign firm or organization that supplies goods or services in India, is deemed a non-resident taxable person who must adhere to all of the restrictions in the Goods and Service Tax Act. Non-resident taxable persons must appoint a nominee in India who may conduct GST compliance on their behalf. Foreigners must get GST Registration five days before starting their firm.

Eligibility Criteria for a Non-Resident taxpayer under GST (Goods and Service Tax)

A non-resident taxable person must register for GST in India regardless of their annual turnover. It is worth noting that all non-resident taxpayers must register for GST five days before starting their firm.

It is preferable if a foreign company selling products and services registers for GST as soon as possible. It should be emphasized that the NRI cannot use the composition scheme’s option to pay taxes.

A business entity formed or founded outside of India that supplies taxable goods and services must register for GST in India, and its Tax Identification Number will be determined by the country.

Documents required for GST registration process for NRI (Non-Resident Indian)

• Bank Account Proof

• Digital Signature (DSC) of authorized person in India

• Proof of Business Incorporation validated by a foreign government

• Passport details of NRI taxable person

• A unique number or Tax Identification number as identified by a foreign government

GST Registration Process for Foreigners

1. To apply for GST Registration in India, the applicant must submit the GST REG 09 form. For international businesses or applicants to file for GST Registration, they must first designate a person in India who will function as the approved representative for GST compliance and obtain a PAN (which is optional).

2. According to the Goods and Services Tax Act, a GST application must be filed by a non-resident taxable person and signed by an authorized signatory who must be a resident of India with a valid PAN.

3. The GST Registration for the non-resident taxable person can be processed once the authorized signatory has been appointed. GST Registration is based on the PAN for regular taxpayers, however, for non-resident taxable persons, the Tax Identification Number or Unique Number based on which the entity is identified by the government of that Nation or the PAN is required.

Provisional GST Registration

• A non-resident taxable person will use the FORM GST REG-09 to submit an electronic registration application, together with a self-attested copy of his valid passport.

• The application must be properly signed or EVC certified.

• It must be filed at least five days before the start of the business day.

• If it is a Foreign Business Entity (incorporated or created outside India), the registration application must be accompanied by the country’s tax identification number or its PAN (if a taxpayer has it).

• Along with the application, a tax advance deposit (based on estimation) is required.

Final GST Registration

Final registration will be completed in the same manner as for resident taxpayers:

• If a person intends to register for GST, he must complete the FORM GST REG–26 and submit it electronically. Any requested information must be provided within three months.

• The final GST Registration will be supplied in FORM GST REG-06 if the information is correct and full.

• If the information is incorrect, the officer will use FORM GST REG-27 to issue a show-cause notice. Following a reasonable opportunity to be heard, the provisional registration will be canceled using the FORM GST REG-28.

• If the applicant’s response is sufficient, the show cause notice can be revoked by issuing an order using the GST REG- 20 form.

• A non-application resident’s registration shall be signed by his authorized signatory, who must be a resident of India with a valid PAN.

Conclusion

A non-resident taxable person’s input tax credit will not be available for goods, services, or both received by him, save for products imported by him. The taxes paid by a non-resident taxable person will be credited to the appropriate recipients. CBIC made Aadhaar Authentication essential to apply for revocation of a canceled GST registration under CGST Rule 23 in REG-21 as of January 1, 2022.