WHO IS NON-RESIDENT TAXABLE PERSON?
A non-resident taxable person under GST is any person or business who occasionally undertakes transactions involving the supply of goods and services or both, whether as principal or agent or in any other capacity. But who has no fixed place of business or resident in India.
Non-resident taxable person needs to register for GST before making taxable supply. Hence, foreign nationals who run temporary businesses in exhibitions or fairs or seasonal businesses in India would fall under this category.
SECTION 24 of GST law mentions certain businesses and entities which are mandatorily required to register under GST and are not governed by the minimum threshold limit of ₹ 20 lakh/ 10 lakh. Thus, irrespective of whether the business is involved in a one-time transaction or frequent taxable transaction, every non-resident individual or company will have to obtain a registration under the GST.
REGISTRATION PROCESS FOR NON-RESIDENT TAXABLE PERSON
Prior to beginning the process for applying for GST registration, foreign businesses or foreign applicants must recognize a person in India to act as its authorized representative for GST compliance and obtain a PAN in India for the foreign company. According to the GST rules, a non-resident taxable person (NRTP) should acquire attestation In the GST registration application. The rules states that the applicants shall acquire attestation from an authorized signatory and resident of India with a valid PAN.
A non-resident taxable person (NRTP) is not required to apply in normal application for registration being filed by other taxpayers. A simplified form GST REG-09 is required to be filled. A non-resident taxable person has to be electronically submit an application, along with a self-attested copy of his valid passport, for registration duly signed and verified through EVC.
DOCUMENTS REQUIRED FOR REGISTRATION
Proof of the Authorized Signatory:
- Passport (for non-residents).
- Passport required to provide if the applicant is a foreign entity, & the person holding the Power of Attorney.
Photograph of Authorized Signatory:
- Recent passport-size photograph of individual who is authorized to sign the GST application.
Proof of Address for Business:
- For businesses in India, you can provide:
- If the premises are rented or leased a consent letter or rental agreement has to provide.
- Utility bills (electricity, water, etc.), municipal khata copy, or property tax receipt, legal ownership documents, for the premises.
Bank Account Details:
- A scanned copy of the first page of the bank passbook or a bank statement containing the bank account number, branch address, and other details has to provide.
Taxpayer Identification Number (TIN):
- The foreign entity must provide their Tax Identification Number issued in their country or another equivalent document.
Form GST REG-09 and valid business visa:
- Form REG-09 is application for registering as an NRTP.
- Individual who is visiting India for business purposes, a copy of the business visa is required.
Power of Attorney/Letter of Authorization:
- If the application is submitted by person other than owner or director of the business, a Power of Attorney must be submitted, authorizing them to represent the foreign business.
PAN (Permanent Account Number) – Optional:
- NRTPs are not required to have a PAN in India. Instead, the passport number is used for registration.
The NRTP is required to submit a GST registration before supplying goods or services in India and must make an advance deposit of tax equivalent to the estimated tax liability for the period they intend to operate.
VALIDITY OF REGISTRATION
Initial Period of Validity:
- GST registration for a Non-Resident Taxable Person (NRTP) is valid for a maximum period of 90 days of date of registration.
Extension of Validity:
- After completing Initial period of registration, NRTP can apply for an extension, but the total period of the registration, including the extension, cannot exceed 90 days (i.e., a total of 180 days).
- The NRTP must apply in Form GST REG-11 before the expiry of the original registration period to request an extension.
Advance tax payment
- At the time of registration, the NRTP must make an advance deposit of tax equal to the estimated tax liability for the period of registration.
- An additional advance deposit of tax is required for the extended period, if an extension is applied.
Surrender of Registration
- NRTP must surrender the GST registration, once the validity period (including any extension) expires or the NRTP ceases to undertake taxable transactions.
- This can be done through Form GST REG-16.
Refund of payment
The non-resident taxable person is eligible for the refund of any unutilized balance of the advance tax paid by him after paying off his liability. The remaining balance of advance tax deposit can be refunded only after all GST returns have been furnished, in respect of the entire period for which the certificate of registration was issued. Refund can be claimed in serial no. 13 of GSTR-5.
GST compliances are complex process so it is advisable to take professionals assistance for GST related work and its compliances. By seeking expert advice, you can mitigate the risk of non-compliance, penalties etc. If you have any doubt regarding this and for compliance services, then connect with company suggestion and our team of experts will guide you.
