GST Registration Process for NRI Business

India is an attractive market for NRIs and foreign nations for investment and business. Considering this, being an NRI, if you are seeking to do business in India, GST is one vital compliance you need to understand. Many NRIs believe that because they live overseas or operate a short-term business in India, they are not liable to pay GST like resident businesses. Well, this assumption is completely wrong. 

The GST law, compared to the resident taxpayer, treats NRIs differently and more strictly. Want to know everything about it? Read the blog to know how the GST registration process for NRI businesses works and gather all the information. 

Who is a Non-Resident Taxable Person (NRTP) Under GST?

Under the GST law, any individual, whether as a principal, agent, or in any other capacity, who occasionally engages in transactions includes the supply of goods or services or both, but does not have a fixed business place or reside in India, is known as a "non-resident taxable person" (NRTP).

The above-mentioned GST rule applies to all companies and businesses that supply goods, services, or data from the databases that are situated outside India. The GST registration requirement for a non-resident taxable person is stated under section 24 of the GST law. Considering this, any business or NRI engaged in continuous or occasional taxable transactions to operate their business legally in India should do GST registration. 

This was all about who is considered a non-resident taxable person (NRTP) under the GST law. Moving ahead, let's know when NRI GST registration is required in India. 

When is GST Registration Required for NRIs?

Under the GST law, it does not matter where you live. It focuses on where the supply of goods and services happens. Considering this, if you are supplying goods or services in India permanently or even temporarily, even if you do not reside in the country, you fall in the category of a non-resident taxable person (NRTP). This applies to you if you are:

• Operating an online business that serves Indian customers
• Providing processional or consultancy services to customers in India.
• Executing a short-term contract or project. 

To commence your business in India five days before, you need to submit the GST REG-09 form to obtain a provisional registration. So, this is when NRI GST registration is required in India. Moving further, let's know the documents required for GST registration for NRIs. 

Documents Required for GST Registration for NRIs

NRIs can do the GST registration online, but the documentation should be precise. You generally need:

• Passport (it is compulsory)
• Overseas address proof
• PAN card
• A recent passport-size color photograph
• Bank account details
• Address details of the business place where you will operate in India
• Details of an authorized signatory, if someone is managing compliance on your behalf in India

In case you do not have your PAN card or a PAN card for the company, using your passport details, you can still register for GST. It is beneficial for a foreign business entity that does not hold an Indian PAN card. Now, after knowing the documents required for GST registration for NRIs, moving ahead, let's know the provisional GST registration. 

Provisional GST Registration for NRIs?

Here is how NRIs can do provisional GST registration in India:

• Using the GST REG-09 form and a self-attached copy of their current passport, a non-resident taxable person should submit an electronic GST registration application.
• The GST application needs to be signed properly, or it should be EVC (Electronic Verification Code) certified. 
• The application should be submitted at least five days before starting the business operations in India.
• Additionally, if a foreign business company, i.e., formed or founded outside India, applies for GST registration, it should give its PAN card or tax identification number (TAN) of the country. 
• Along with the GST application, you also need to deposit the estimated advance tax. 

This was all about provisional GST registration for NRIs in India. Moving forward, let's know the final GST registration process for NRIs in India. 

Final GST Registration Process

The final GST registration process for NRTP is carried out in the same way as for resident taxpayers in India:

• If an individual wants to register for GST, he/she should use FORM GST REG-26 to submit an application electronically. Additionally, the required information should be provided within a period of three-months.
• If the provided information is complete and correct, the final GST registration will be granted in FORM GST REG-06. 
• In case the information mentioned in the form is found incorrect, a GST office using FORM GST REG-27 will issue a show-cause notice. To be heard, a reasonable opportunity will be provided, after which, through the FORM GST REG-28, the provisional registration will be cancelled. 
• If the response of the applicant is adequate, by issuing an order using the FORM GST REG-20, the show-cause notice will be revoked.
• Additionally, the GST registration application made by NRTP should be signed by an authorized signatory who is an Indian resident and holds a valid PAN card. 

So, this is how NRIs can apply for the final GST registration process in India. Moving further, let's know the GST returns that NRIs need to file in India. 

GST Returns NRIs Are Required to File

Being an NRI, every month, you need to file GSTR-5. This return showcases your sales, purchases, paid taxes, and tax liability. Considering this, if in a particular month, you do not conduct any transactions, then also you need to file a nil return.

For NRIs, there is no annual GST return requirement in India; however, monthly compliance is monitored strictly. Delays in it lead to late fees and interest, which accumulate faster than you expect. 

Final Thoughts

Lastly, being an NRI, if you are planning to start a business in India, it is vital to consider GST implications on an NRI setting up a business in India. Additionally, the GST registration process for NRI businesses is subject to certain compliance and regulatory requirements. Registering early, correctly estimating your tax liability, and filing GST returns on time, you can stay compliant and avoid unnecessary penalties. 

Further, if you face any tax complications, connect with Savetaxs. Our financial experts help you in resolving your tax matters and provide you with adequate guidance and support. Additionally, they can also assist you in tax planning in India.