Even NRIs are required to register under GST if their tax status in India is that of a ‘Non-Resident Taxable Person’. Check out this post to know what this tax status means and understand the GST registration process.
As one of the fastest-growing countries in the world, India is an excellent place for NRIs to invest or start a business. But just like resident Indians, NRIs wanting to conduct business in India are required to register under GST.
In case if such commercial entities run by NRIs conduct business in India without GST registration, it will be treated as an offense leading to severe penalties and even imprisonment.
Take a look at when GST registration for NRI is mandatory and how to register-
When Should NRIs Register Under GST?
As per the GST laws, every ‘Non-Resident Taxable Person’ must obtain GST registration mandatorily. This means that any individual who undertakes transactions that involve the supply of goods and/or services, in any capacity, but does not have a fixed place of residence or business in India should register under GST.
Moreover, Section 24 of the GST Act also states that irrespective of whether such businesses conduct frequent or one-time taxable transactions, they need to obtain GST registration mandatorily.
How Can NRIs Register for GST?
Every business or NRI covered in the definition mentioned above should mandatorily register for GST at least five days before business commencement. The registration is a two-step process divided into Provisional Registration and Final Registration.
- Provisional Registration
Eligible NRIs and businesses can file Form GST REG-09 online and submit a self-attested passport copy to begin the registration process.
If a business entity is filing the form, then it should also submit its overseas tax identification number. Advance tax (based on estimation) should also be deposited along with the registration form.
- Final Registration
Once Form GST REG-09 is submitted successfully, Form GST REG-26 should be filed electronically for completing NRI GST registration. If everything is in order, then the GST department will provide the final registration through Form GST REG-06.
In case of any errors in GST REG-26, the GST department will issue Form GST REG-27, after which the NRI or business will be allowed to resolve the error within a fixed duration.
Documents Required for GST Registration
To successfully submit the registration form, NRIs and businesses will also need a number of documents. Some of the most important of them are as follows-
- Business Place Proof- Documents supporting ownership of business premises or rental agreement in case of leased or rented premises.
- Identity Proof-Scanned copies of a valid passport and VISA details. In case if the business is established outside India, then a tax registration number like PAN should also be provided, along with an incorporation certificate.
- Bank Account Proof- Scanned copies of the bank account statement or passbook of the NRI account or business account.
Copies of other documents such as any licenses received in a foreign country or clearance certificate by the Indian government should also be submitted if available.
Selecting the Best Bank for NRI Banking Services
NRIs wanting to invest in India or start a business here should also consider a reputed bank that offers seamless NRI banking services. From different types of bank accounts, term deposits, remittance services, to loans, the bank should provide a host of products and services to help NRIs grow their business in India.
Be it GST registration or filing tax returns, top Indian banks can help NRIs and foreign businesses in several ways to ensure complete compliance and validity.
Jeff Morgan is currently associated with NetworksGrid as a technical content writer. Through his long years of experience in the IT industry, he has mastered the art of writing quality, engaging and unique content related to IT solutions used by businesses.