A “non-resident taxable person” refers to an individual who occasionally conducts transactions involving the sale of goods or provision of services, either as an agent or as a principal or in any other capacity, but lacks a permanent business or residence location in India.” Any person who is a resident of India will obtain regular GST Registration in Form GST REG-01. In contrast, a non-resident taxpayer has to use Form GST Reg-09 to get GST Registration as Non-resident taxable person. Like the casual taxable person, the non-resident taxable person must also pay tax in advance.
A business importing goods or services from outside India or managing a business on behalf of a person resident outside India,
Who is a ‘Non- Resident Taxable Person’?
The Goods and Services Tax Law has defined a ‘non-resident taxable person’ as any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
Section 24 of the GST law further specifies the requirement for registration for a non-resident taxable person. It mentions certain businesses and entities which are mandatorily required to register under Goods and Services Tax and are not governed by the minimum threshold limit of Rs. 20 lakh/ 10 lakh. Thus, irrespective of whether the business is involved in a one-time transaction or frequent taxable transactions, every non-resident individual or company will have to obtain a registration under the Goods and Services Tax
GST Registration Requirements for Non- resident Taxable Persons
Registration Procedure for a Non-Resident Taxable Person
Person or business who falls under the definition covered above needs to apply for registration at least five days prior to the commencement of business. Further clarification has been provided in case of a high-sea sale; the law says that every person who makes a supply from the territorial waters of India shall obtain registration in the coastal state or Union territory where the nearest point of the appropriate baseline is located. High Sea Sale (HSS) is a sale carried out by the carrier document consignee to another buyer while the goods are still being transported, or after their dispatch from the port/airport of origin and before their arrival at the port/airport of destination. Thus if any high-sea sale is carried out near the shore of Mumbai, the GST registration has to be obtained in the state of Maharashtra.
A non-resident taxable person needs to electronically submit a duly signed application, along with a self-attested copy of his valid passport, for registration, using the form GST REG-09, at least five days prior to the commencement of business on the Common Portal. Application must be duly signed or verified through EVC, a new mode of electronic verification based on aadhar. The non-resident (if it is a company) must submit its tax identification number of its original country (whatever is the equivalent of our PAN in that country). A person applying for registration as a non-resident taxable person will be given a temporary reference number electronically by the Common Portal for making an advance deposit of tax in his electronic cash ledger and an acknowledgment will be issued thereafter.
High Sea Sale (HSS) is a sale carried out by the carrier document consignee to another buyer while the goods are still being transported, or after their dispatch from the port/airport of origin and before their arrival at the port/airport of destination. Thus if any high-sea sale is carried out near the shore of Mumbai, the GST registration has to be obtained in the state of Maharashtra.
A non-resident taxable person needs to electronically submit a duly signed application, along with a self-attested copy of his valid passport, for registration, using the form GST REG-09, at least five days prior to the commencement of business on the Common Portal. Application must be duly signed or verified through EVC, a new mode of electronic verification based on aadhar. The non-resident (if it is a company) must submit its tax identification number of its original country (whatever is the equivalent of our PAN in that country).
A person applying for registration as a non-resident taxable person will be given a temporary reference number electronically by the Common Portal for making an advance deposit of tax in his electronic cash ledger and an acknowledgment will be issued thereafter.
Documents Required for GST Registration
Proof of Principal Place of Business
- For own premises – Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- Rented or Leased premises – A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- For premises not covered above – A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents may be uploaded.
Identity Proof
- Scanned copy of the passport of the Non -resident taxable person with VISA details. In case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or it’s PAN, if available.
- In case of Company/Society/LLP/FCNR/ etc. person who is holding power of attorney with an authorization letter.
- Scanned copy of Certificate of Incorporation if the Company is registered outside India or in India.
- Copy of the license is issued by a foreign country, if available.
- Scanned copy of Clearance certificate issued by Government of India, if available.
Bank Account Proof
- Scanned copy of the first page of Bank passbook / one page of Bank Statement Opening page of the Bank Passbook held in the name of the Business – containing the Account Number, Name of the Account Holder, MICR and IFSC and Branch details.
Authorisation for Authorised Representative in India
Non-resident taxable persons are required to appoint an authorised representative in India. An authorization or copy of Resolution of the Managing Committee or Board of Directors authorising the authorised representative
Advance Payment of Tax by Non-Resident Taxable Person
A non-resident taxable person is required to make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which registration is sought.
These rules further specify that in case a non-resident taxable person intends to extend the period of registration indicated in their application of registration, an application using the form GST REG-11 should be furnished electronically through the Common Portal before the end of the validity of registration granted to him.
Important Instructions for Non-Resident Taxpayers (NRI)
- Name of Applicant should reflect as per the passport.
- It is mandatory for the applicant to apply for GST registration on the common portal by filing form GST REG-09 at least 5 days before commencement of the business.
- The applicant should submit the Tax identification number or unique identification number (as identified by the respective Government) or PAN (if applicable) along with the application, in case of a business entity incorporated or
established outside India. - The applicant shall provide the application duly signed or verified by EVC
In case of NRI, in order to obtain GST registration, following a two-step procedure needs to be followed:
- Provisional registration
- Final registration
Provisional Registration- The Non-resident taxable person (NRI) shall submit an application in Form GST REG-09 through online. The applicant shall also submit a self-attached copy of valid passport along with the application.
The applicant shall submit the application 5 days prior to the commencement of business. In the case of foreign entity, the concerned individual shall submit the application for GST registration along with tax identification number or unique number or PAN (if applicable). Such advance payment of tax would be based on self-estimation. Hence, the applicant should mandatorily make the advance tax deposit along with the application.
Final Registration- Final registration of Non-resident taxable person (NRI) would be carried out in the same line as of the resident taxpayer in India. The following below details the procedure:
- The applicant shall submit the FORM GST REG-26 electronically. In addition, the concerned applicant shall submit all the information related to tax and GST within a period of 3 months from the provisional registration.
- The applicant shall receive the GST certificate in FORM GST REG-06, upon providing accurate and complete details. Upon any discrepancies or incomplete information, the authorized may cancel the application for registration through FORM GST REG-28.
- However, if the applicant provides an appropriate reply to the show cause notice issued and the officer accepts the said reply, the officer shall cancel the show cause notice by issuing an order in FORM GST REG-20.
- The authorized signatory of the applicant should duly sign the application for registration. The said authorized signatory should be a person resident in India and he would have a valid PAN.
FAQs
What is a non-resident taxable person (NRTP)?
A non-resident taxable person refers to an individual or entity that is not a resident of a particular tax jurisdiction but is liable to pay taxes in that jurisdiction due to engaging in taxable activities there.
When do I need to register as an NRTP?
You typically need to register as an NRTP when you engage in taxable activities in a country where you’re not a resident. This registration is necessary to comply with local tax laws.
Practice area's of B K Goyal & Co LLP
Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online
Company Registration Services in major cities of India
Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow
Complete CA Services
RERA Services
Most read resources
tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta