Foreign Non-Resident Taxpayer: GST Registration Documents Required
In today’s global economy, it’s normal for foreign companies and people who don’t live in India to sell goods or provide services there. However, the supply of goods and services is subject to Goods and Services Tax (GST) obligations under Indian tax law. GST registration is needed if you provide services from outside of India, run an e-commerce business, or sell goods in India. Let’s go over the paperwork that a foreign non-resident taxpayer in India needs to get registered for GST.
Who Pays Taxes as a Foreign Non-resident?
Under GST, a Non-Resident Taxable Person (NRTP) is someone who sells things or provides services from time to time but does not have a permanent place of business in India. This also includes foreign companies that come to India to do business at shows, trade fairs, or other short-term events.
Note: An NRTP must register for GST at least five days before starting business in India. Documents a foreign non-resident taxpayer must have to register for GST
1. Passport (for individuals) or Certificate of Incorporation (for businesses)
Specific people: A clear scan of the passport page that shows the visa is still good.
A certificate of incorporation from a foreign government or body for a business.
Note: If the document was given in a language other than English, make sure it has been translated into English.
2. IRS Tax Identification Number (TIN) or a unique ID number
- This is your tax ID number from your home country.
- A business’s tax ID number is often used.
Note: If TIN is not available, any other government-issued ID number may be used instead.
3. Appointment of an authorised signatory
- A taxpayer from outside India must name an authorised person who lives in India.
- For all GST compliance tasks, this person will speak for the non-resident company.
Document needed: an authorisation letter or a power of attorney for the Indian resident who is allowed to sign.
4. Permanent Account Number (PAN) of the person who is authorised to sign
Foreign companies don’t need a PAN to register for GST, but the person who is allowed to sign must have a valid PAN.
5. Cell phone number in India
Required to get one-time passwords (OTPS) when registering for GST and continuing to file.
6. Details of an Indian bank account
Taxpayers who don’t live in India should open an Indian bank account.
If it’s not possible to open a bank account before registering, a letter from a bank can be used as proof of purpose.
Note: Once you’ve registered for GST, you need to change your Indian bank account information on the GST portal.
7. Proof of a business location in India, if needed
If you are working from a temporary place, like a booth or rented room (for example, during an exhibition), send in:
- A letter of permission from the owner of the land.
- Electricity, water, and other utility bills for the building.
- If needed, a rent or lease deal.
Note: You must show proof of your home, even if you are only staying somewhere temporarily.
A Quick List to Make Things Easier to Find
An important thing to know about NRTPS is that foreign non-residents must pay their estimated tax bill in advance when they register, but Indian residents do not have to do this.
- Registration Terms: The registration is good for 90 days at first, and it can be renewed for another 90 days if needed.
- Filing Returns: NRTPS must file GSTR-5, a special return for non-residents, within 20 days of the end of the month or 7 days of the end of their registration period, whichever comes first.
Get Started with TaxDunia
It might seem hard to get GST registration as a Foreign Non-Resident Taxpayer in India, but you have to do it to properly do business and follow the rules. Make sure you have the right paperwork, like your passport and a list of Indian-approved signatories. If you are a foreign company that wants to do business in India, you should get help from a professional tax expert who knows how GST works for non-residents. Reach out to TaxDunia to get help from professionals.
