GST Registration for Foreigners and NRIs

What are the Essential Compliance Details for NRI GST Registration?

The list of essential authorized signatory and compliance details for NRI GST registration is as follows:

• The presence of an authorized signatory within the territory of India must be equipped with complete and valid details.
• The authorized signatory must possess a valid Permanent Account Number (PAN) to ensure legitimacy and traceability.
• The Indian authorized signatory must be reachable via a valid Indian mobile number for direct communications or verifications.
• An authorized signatory must have a valid email address to facilitate electronic correspondence and official notifications.
• The applicant for GST registration should hold a valid identification such as PAN, Passport Number, Tax Identification Number (TIN), or any unique government-issued identifier from their home country.
• All necessary documents must be furnished, and mandatory fields in the Non-resident GST registration application must be duly completed.

Procedure for Provisional GST Registration for NRIs and Foreigners

The step-by-step procedure for provisional GST registration for NRIs and foreigners is as follows:

• Application form for provisional GST registration for NRIs: A form GST REG-09 must be filled out by foreigners or NRIs. It is specifically designed for non-resident taxable persons and differs from the forms used by resident taxpayers.
• Electronic Submission of the Application: The GST REG-09 form should be submitted via the official GST portal along with a self-attested copy of the NRI's valid passport as proof of identity and nationality.
• Authentication of the Application: The filled-in application must be authenticated by either the signature of the applicant or an Electronic Verification Code (EVC).
• Timely Submission before the commencement of Business: The application must be submitted at least five days before starting business in India. This ensures that the Non-resident GST registration is processed and approved before business operations begin.
• Business Entity Specific Requirements: Applicants operating through an entity incorporated outside India must provide additional documents such as a business entity tax identification number or a government-recognized identifier from their home country. Alternatively, an Indian PAN can be submitted.
• Designation of an Authorized Signatory: The application must be signed by an authorized signatory resident of India with a valid PAN, who will act as the NRI’s agent for GST compliance.
• Verification and Temporary Reference Number: After verification of documents like PAN, mobile number, and email, the authority issues a temporary reference number, which is required for the next step: making an advance tax deposit.
• Advance Tax Deposit and Granting of a Provisional GST Registration: The NRI applicant must make an advance tax deposit reflecting the estimated tax liability. Once deposited, the provisional GST registration certificate will be issued and reflected in the electronic cash ledger on the GST portal.

What is the Process for Final GST Registration for Foreigners and NRIs?

The step-by-step procedure for final GST registration for foreigners and NRIs is as follows:

• Application Form for Final GST Registration for Foreigners – The applicant must submit FORM GST REG-26 electronically, following the same procedure as a resident taxpayer.
• Furnishing of Information – At this stage, the NRI applicant must furnish all necessary documents within three months of applying for final GST registration. This step is crucial for validating the provisional registration.
• Verification and Approval – Once the submitted information is found to be accurate and complete, the final GST registration is granted, and FORM GST REG-06 is issued to the applicant.
• Discrepancies and Show-Cause Notice – If any information is found to be incorrect or incomplete, a show-cause notice may be issued in FORM GST REG-27, giving the applicant a reasonable opportunity to be heard.
• Cancellation or Rectification – If discrepancies are not resolved satisfactorily, the provisional registration may be cancelled using FORM GST REG-28. If resolved, the show-cause notice is nullified through FORM GST REG-20, and final GST registration is granted.
• Commencing Taxable Supplies – After receiving the GST registration certificate, the foreigner or NRI is authorized to commence taxable supplies in India in compliance with GST laws and regulations.

Extension of NRI GST Registration

Typically, when a foreigner or an NRI wants to extend their approved NRI GST registration beyond the approved period (up to 90 days or the period specified in the application), the applicant must file an application with the concerned officer using FORM GST REG-11 before the current registration expires.

Additionally, the foreigners also need to deposit an additional advance tax for the extended period. Overall, this detailed procedure ensures that foreigners are well-informed and prepared to meet the regulatory requirements for conducting taxable business transactions in India under the GST regime.