Input Tax Credit

Read Time:5 Minute, 50 Second

A non-resident taxable person is not eligible to claim input tax credit for any goods or services received, except for those directly imported goods. However, the taxes paid by a non-resident taxable person can be utilized as a credit by the respective recipients.

GST Returns Filings for Foreigners

A non-resident taxable person must electronically submit a GST return using FORM GSTR-5. This return, which includes outward and inward supply details, must be filed. Any due tax, interest, penalty, fees, or other charges under the Act or regulations must be paid within thirteen days following the end of a calendar month or seven days after the registration validity period expires, whichever comes first.

GST Refund for Foreigners in India (Payment of Advance Tax)

The advance tax paid by a non-resident taxable person will be eligible for GST refund for foreigners in India only after submitting all necessary returns for the duration their registration certificate was valid. The application for a refund can be made in section 13 of FORM GSTR-5.

IndiaFilings: Expert Assistance for GST Registration for Foreigners

IndiaFilings can provide significant support and expertise in facilitating GST registration, ensuring a smooth and compliant entry into the Indian market. Here’s how we can help:

Expert Guidance: IndiaFilings offers access to a team of experts knowledgeable in GST regulations, including specific provisions applicable to NRIs. We can provide tailored advice based on your business’s unique needs.
Streamlined Application Process: Our experts have a deep understanding of the GST registration process. They can streamline your application, ensuring all the required documentation is accurate and submitted correctly.
Authorized Signatory Support: We can assist in fulfilling the requirement for an authorized signatory in India, guiding you through appointing someone and ensuring they have the necessary documentation.
Timely Submissions: Understanding the importance of deadlines, IndiaFilings can help ensure that your GST registration application is submitted within the stipulated time frames, avoiding unnecessary delays.
Ongoing Support: Beyond the initial registration, IndiaFilings can provide ongoing support for GST compliance, including filing GST returns, maintaining records, and updating registration details as required.

Recognizing that every business is unique, we offer customized solutions that cater to the specific needs of NRIs looking to do business in India, ensuring that the advice and support provided are as relevant and effective as possible.

Ready to streamline GST registration for foreigners? Connect with IndiaFilings today!

Documents Required For GST Registration for Foreigners

PAN Card Company

Applicant’s unique number as identified by the Government.

Incorporation Certificate

Certificate of incorporation provided by the Foreign Government

Promoters Passport Size Photo

Relevant identity and address proof of the promoter with photographs

Proof of Address

Relevant address proof of the business for own, rented or other scenarios.

Bank Statement

Scanned copy of passbook/bank statement/cancelled cheque containing Proprietor/business entity’s name

GST Registration for Foreigners FAQ’s

Who needs to register under GST in India?

Any foreign individual or entity supplying goods or services in India without a permanent establishment or residence must register under GST.

What is a Non-Resident Taxable Person?

A Non-Resident Taxable Person is an entity conducting transactions in India without a fixed place of business or residence within the country.

Is GST registration mandatory for non-residents?

Yes, GST registration is compulsory for non-resident taxable persons, irrespective of their transaction volume.

Can non-resident taxable persons opt for composition levy?

No, non-resident taxable persons are not eligible for the composition levy scheme under GST.

How soon should GST registration be done?

GST registration must be completed at least five days before commencing business operations in India.

What documents are required for GST registration?

Documents include proof of authorized signatory, proof of principal place of business, and proof of details of bank accounts, among others.

What is the validity period of NRI GST registration?

The registration is valid for the specified period in the application or ninety days from the effective date, whichever is earlier.

What are the phases of GST registration for NRIs?

The process includes provisional registration and final registration.

Which form is used for provisional GST registration?

Form GST REG-09 is used for provisional registration by NRIs.

How is the GST registration application submitted?

The application is submitted electronically through the official GST portal along with a self-attested copy of the applicant’s valid passport.

What is the significance of the advance tax deposit?

An advance tax deposit equivalent to the estimated tax liability must be made before the registration certificate is issued, ensuring compliance.

How is final registration under GST obtained?

Final registration is obtained by submitting Form GST REG–26 electronically with the necessary information furnished within three months.

What happens if there are discrepancies in the application?

Discrepancies may lead to a show-cause notice, and the applicant will be given an opportunity to rectify.

Who can act as the authorized signatory for NRIs?

An authorized signatory must be a resident of India with a valid PAN, acting on behalf of the NRI for GST compliance.

What is the procedure for extending GST registration validity?

An extension application using Form GST REG-11 must be filed before the current registration expires, along with an additional advance tax deposit.

Are non-resident taxable persons eligible for input tax credit?

Non-resident taxable persons cannot claim input tax credit except for directly imported goods; however, the taxes paid can be utilized as a credit by the recipients.

How are GST returns filed by non-residents?

Non-residents must electronically submit GST returns using Form GSTR-5, including details of outward and inward supplies, and pay applicable taxes within the stipulated timeframe.

When can a refund of advance tax be claimed?

Refund of advance tax is eligible after submitting all necessary returns for the duration of registration validity, with the application made in Form GSTR-5, Section 13.

What support does IndiaFilings offer for NRI GST registration?

IndiaFilings provides expert guidance, streamlined application processes, assistance with authorized signatories, timely submissions, and ongoing support for GST compliance.

How can one connect with IndiaFilings for assistance?

Interested individuals or entities can connect with IndiaFilings to streamline GST registration by contacting their expert team.

Do I need to charge GST to foreign clients India?

Most taxpayers are confused over the question, ‘Do I need to charge GST to foreign clients India’. If you are providing services to foreign clients in India, you generally do not need to charge GST. According to the GST regulations, if you receive payment in a foreign currency and meet specific conditions, your services are considered zero-rated exports.

How can I do GST registration documents download?

You can complete the GST registration documents download from the official GST portal. The portal provides access to all necessary forms and guidelines related to GST registration, including FORM GST REG-09 for non-resident taxable persons and other supporting documents required for different types of applicants.

Previous Chapter Next