The Indian economy has expanded more quickly as a result of investments made in the country by non-resident Indians (NRIs). The Indian government has taken a number of steps to make it easier for NRIs to trade and do business.
In India, the Goods and Services Tax (GST) was implemented to reduce compliance burdens and eliminate multiple taxes. Through automation of compliance, it aims to encourage digitalization and improve efficiency. The GST-enacted registration procedure is user-friendly and simple. For registration, returns, refunds, etc., there are distinct sets of regulations. for non-resident taxable persons (NRTPs) and domestic taxpayers.
Any person who occasionally engages in transactions involving the supply of goods or services, or both, but does not have a fixed place of business or residence in India is considered an NRTP under the Indian GST law. This can be done in any capacity, including principal, agent, or any other. When it comes to GST registration, the NRTPs should keep a few important things in mind.
If a supplier’s total turnover exceeds a predetermined threshold, they must register to provide goods or services under the GST law. Even if the turnover limit isn’t met, registration is still required for some specific groups of people. NRTPs that make taxable supply fall into this category; Consequently, regardless of the amount of revenue involved, non-residents making taxable supplies are required to register under Indian GST laws. These NRTPs must apply for registration at least five days before starting business.
Validity of the Registration Certificate
The NRTP cannot make taxable supplies until the registration certificate is issued. Unless a shorter period is specified when applying for such registration, the issued certificate is valid for 90 days. The concerned GST officer may further extend this by another 90 days.
When applying for registration, NRTPs are required to make an advance tax deposit. This sum is comparable to the assessed charge risk for the period for which the enrollment is looked for. In addition, an additional tax sum equal to the estimated tax obligation for the extended period must be deposited if the registration certificate is extended. The NRTP’s electronic cash ledger contains the amount deposited as an estimated tax liability. The e-ledger known as the electronic cash ledger can be found on the GST portal. It contains the deposits and payments for GST that a taxpayer has made.
Authorized signatory NRTP must appoint an authorized signatory, who will typically oversee the operational activity. A person who is a resident of India and has a valid Permanent Account Number (PAN) should be the authorized signatory. Such individual will be expected to sign the enrollment application. An individual is supposed to be occupant in any earlier year on the off chance that he/she fulfills any of the accompanying circumstances:
- He or she spends at least 182 days in India from April to March of the following year, or * He or she spends at least 60 days in India during the relevant tax year and at least 365 days in the four years preceding the relevant tax year.
- The registration procedure can be completed via the government portal at www.gst.gov.in for new NRTP registrations. After providing the necessary information and receiving the 15-digit Temporary Reference Number (TRN) from the portal, the registration process begins.
- The PAN, the authorized person’s name, the registration state/Union territory, the district, an email address, a mobile phone number, and other details are some of the most important information required by the GST portal. Additionally, the NRTP’s legal name must match the entity’s passport, PAN, or Tax Identification Number (TIN) so that the government of its country can identify it.
The application (GST REG-09) is generally divided into five sections: business details, authorized signatory, principal place of business, bank account, and verification. The following information must be provided in each section:
- Information about the business The legal name, address, PAN/TIN/unique identification number, state, registration period, and other information about the business must be provided. In addition, the application requires the estimated turnover and tax liability for the registration period. A challan for tax deposit is automatically generated based on this information.
- Authorized signatory The identity of the authorized signatory and certain personal information are required for the registration process. The signatory’s personal information includes things like their birth date, father’s name, mobile phone number, gender, email address, and so on. The designation, nationality, and Aadhaar number (if any) would be included in the identity data. The Letter of Authorization, a copy of the resolution passed by the Board of Directors or Managing Committee, and the Acceptance Letter are also required as supporting documents. These documents include a photograph and evidence that the authorized signatory is the one being supported.
- Principal place of business The “Principal Place of Business” is NRTP’s primary state-based location from which it will conduct business. Address, phone number, and the type of property in possession—owned, leased, etc.—must be included in the information about this location. To support the provided information, you must submit one of the following documents:
a copy of the municipal khata, a copy of the electricity bill, or a legal ownership document, or a receipt for the property tax.
Additional documents of rent receipt with a No Objection Certificate (NOC) are required in the event of a no-lease or expired lease, as well as in the event of a rented or leased property. In addition, a consent letter must be provided for shared premises.
- Bank Account: When applying for registration, providing bank information is optional. However, by submitting an amendment application in the future, the same information can be provided.
- Verification: The application form can be verified, signed, and submitted via DSC (Digital Signature), e-signature, or an EVC sent to a mobile number. On effective accommodation of the application structure, an Application Reference Number (ARN) is produced by the GST gateway. The application’s status, such as “provisional,” “pending for verification,” “validation against error,” and so on, can be found in the ARN.
Learn more about gst registration requirements
Grant of Registration
The GST officer examines the submitted application and, if found to be in order, grants registration within seven working days of the application’s submission date.
Within seven working days of submitting the application, the GST officer sends the applicant an electronic notice if any information, documents, or clarifications are found to be lacking. Within seven working days of receiving such notice, the applicant is required to provide these details in the specified format. The GST officer will approve the registration within the next seven working days if they are pleased with the additional information provided.
The NRTP requires the registration certificate to include a 15-digit unique tax identification number on a variety of official documents. It is no longer necessary for taxpayers to visit the department in order to obtain a registration or submit documents. The registration procedure does not even require a face. Any taxpayer can easily finish the registration process thanks to online registration, which makes it easier and more convenient.
In general, NRTP has simplified the registration, compliance, and refund procedures for the GST in order to make doing business easier. all of the GST-related registration, return, and other information. can be accessed quickly and easily via the GST portal with a single click. These procedures have been developed with the possibility of temporary NRTP transactions in mind.