GST Registration in India for Foreigners

Overview

A non-resident pursuing to undertake supply of goods or services or both, occasionally or permanently, directly as owner or indirectly as agent or in any capacity, has to mandatorily register for GST. The non-resident taxable person also needs to authorize a person in India to take care of the GST compliances.

According to the GST regulations, the non-resident taxable person has to apply for GST registration as a Non-Resident Foreign Taxpayer. This has to be done through the agent authorized by the non-resident taxpayer by filing an application for GST registration, after which a transaction number is generated. The taxpayer has to deposit the GST amount using transaction number and hence obtain GST registration in India.

Benefits of GST

• GST has become a unified platform doing away with all the other taxes such as multiple VAT registrations and Service Tax registration.
• There are no multiple taxes such as Central Sales Tax, Additional Custom Duty, Purchase Tax, Luxury Tax, etc. as GST undertakes a single tax on all goods and services. This has also increased the ease of doing business.
• With a greater annual turnover threshold, the taxes to be paid are lower as compared to what was in case of VAT. GST is also expected to increase the tax base, hence decreasing the overall tax liability and making business more compliant.

GST Registration Process

1. Appoint an authorized signatory with a valid PAN card holder of India who will undertake GST registration and GST compliances.
2. The promoters of the foreign company then sign a GST declaration validating the appointment of the authorized signatory in India.
3. The authorized signatory will then submit the application for GST registration for the non-resident taxable person with all the necessary documents. A reference number is generated for remitting the GST deposit.
4. Depending upon the expected liability, the GST deposit has to be remitted to obtain GST registration.
5. Once the GST deposit is remitted and documents are checked by the officials, a GST registration certificate is issued for a fixed valid period.

Required Documents

• Proof of Appointment of Authorised Signatory
• Letter of Authorisation
• Copy of Resolution passed by Managing Committee and Acceptance letter
• Photo of the Authorised Signatory
• Proof of Principal Place of Business
• Proof of Details of Bank Accounts

Frequently Asked Questions (FAQ)