GST Registration for Non Resident Taxable Person (NRTP) under GST Law

GST Registration for Non Resident Taxable Person (NRTP) under GST Law. A Non-Resident Taxable Person (NRTP) under the Goods and Services Tax (GST) framework refers to any individual, business, or organization that occasionally supplies goods or services in India but does not maintain a fixed place of business or residence within the country. This classification applies to foreign entities or individuals engaging in such transactions, requiring them to adhere to GST regulations in India.
GST Registration Requirements for NRIs
All non-resident taxable persons are obligated to register for GST in India, regardless of annual turnover or other criteria. According to the GST Act and Rules, GST Registration must be completed at least five days prior to the commencement of business activities. Consequently, foreign entities planning to supply goods or services to India must secure GST registration promptly.
GST Registration Process for Non-Resident Taxable Persons
1. Application Timing:
Any individual or entity meeting the definition of a non-resident taxable person must apply for GST registration at least five days before commencing business activities.
2. High-Sea Sales and GST Registration:
For transactions such as High-Sea Sales (HSS)—where goods are sold while in transit, post-dispatch from the origin but before arrival at the destination—the law requires GST registration in the state or Union Territory near the baseline closest to the territorial waters where the sale occurs. For example, if a high-sea sale occurs near Mumbai, GST registration must be obtained in Maharashtra.
Steps for GST Registration:
1. Form Submission:

Submit Form GST REG-09 electronically on the Common Portal.

The form must be signed or verified electronically through EVC (Electronic Verification Code).

2. Document Requirements:

A self-attested copy of a valid passport for individuals.

For companies, the tax identification number or equivalent from the country of origin must be submitted (equivalent to a PAN in India).

3. Advance Tax Deposit:

Upon submission of the application, the Common Portal generates a temporary reference number.

This number is used to make an advance tax deposit in the applicant’s electronic cash ledger.

4. Acknowledgment Issuance:

Once the advance tax is deposited, an acknowledgment is provided electronically.

GST Registration for OIDAR Services
Non-resident entities providing online information and database access or retrieval (OIDAR) services to non-taxable online recipients in India must submit their application electronically using FORM GST REG-10.
Documents Required for GST Registration
Non-resident taxable persons must furnish the following documents during registration:
1. Proof of Place of Business:

For owned premises: Property tax receipt, municipal record, or electricity bill.

For rented premises: Valid rent/lease agreement along with ownership proof of the lessor.

For shared or consented premises: Consent letter with supporting ownership documents of the consenter.

2. Identity Proof:

Passport copy with visa details.

For businesses, tax identification number or unique identification number issued by their home country, or PAN if applicable.

Certificate of Incorporation for companies.

3. Additional Documents:

Power of attorney/authorization letter for the authorized signatory.

License issued by a foreign country (if available).

Clearance certificates issued by the Government of India (if available).

GST Deposit for Non-Resident Taxable Persons
NRIs must make an advance deposit equivalent to their expected GST liability during the registration validity period. If an extension is sought, an additional deposit is required based on estimated tax liability for the extended period. Upon payment, the system credits the amount to the electronic cash ledger, enabling the issuance of the GST registration certificate.
Validity and Extension of GST Registration
GST registration for non-resident taxable persons is typically granted for a specific period based on the applicant’s request and deposit amount. For extensions, an application must be submitted using FORM GST REG-11 before the registration expires.
Key Instructions for Non-Resident Taxpayers

The applicant’s name must match the passport.

Applications must be submitted at least five days before business commencement using FORM GST REG-09.

The application must include a valid tax identification number, unique identification number, or PAN (if applicable).

All applications must be verified and signed using Electronic Verification Code (EVC).

Provisional and Final GST Registration
Provisional Registration:

Submit FORM GST REG-09 online along with a valid passport copy and advance tax deposit based on self-estimation.

Final Registration:

File FORM GST REG-26 electronically, providing all tax and GST details within three months of provisional registration.

A GST certificate will be issued in FORM GST REG-06 if all details are accurate.

If discrepancies arise, the registration may be canceled using FORM GST REG-28, unless a satisfactory reply is submitted through FORM GST REG-20.

Non-resident taxable persons (NRTPs) must electronically file their GST returns using Form GSTR-5 on the official GST portal (www.gst.gov.in). The tax rates applicable fall into four main categories: 5%, 12%, 18%, and 28%.

FAQs
Q1. Who is considered a Non-Resident Taxable Person (NRTP) under GST law?
Ans. A Non-Resident Taxable Person (NRTP) is an individual or business entity that does not have a fixed place of business or residence in India but occasionally undertakes supply of goods or services in India. Such persons are required to register under GST irrespective of the threshold limit.
Q2. Is GST registration mandatory for NRTPs even if their turnover is below the threshold limit?
Ans. Yes, GST registration is mandatory for NRTPs irrespective of their turnover. They must register before making any taxable supply in India and cannot claim the benefit of the exemption threshold available to regular taxpayers.
Q3. How can an NRTP apply for GST registration?
Ans. An NRTP can apply for GST registration by following these steps:
1. Visit the GST portal (https://www.gst.gov.in).
2. Complete the Form GST REG-09.
3. Submit supporting documents, including:

Passport (for individual applicants),

Tax Identification Number or unique identification number from the resident country,

Bank account details,

Proof of the address of business operations in India.

4. Pay the prescribed advance tax.
Upon submission and verification, the GST registration certificate will be issued in Form GST REG-06.
Q4. Is there a validity period for GST registration as an NRTP?
Ans. Yes, GST registration for an NRTP is valid for the period specified during the registration process or up to 90 days from the date of registration, whichever is earlier. The NRTP can extend this period by applying for an extension through Form GST REG-11, subject to approval by the GST officer.
Q5. Is an NRTP required to pay tax in advance during registration?
Ans. Yes, NRTPs are required to deposit an amount equal to the estimated tax liability for the registration period in advance. This payment is made via the electronic cash ledger on the GST portal. Additional payments may be required if the tax liability exceeds the initial estimate.
Q6. Can NRTPs claim input tax credit (ITC) on GST paid?
Ans. No, NRTPs are not eligible to claim Input Tax Credit (ITC) on the GST paid. They operate on a cash-and-carry basis, meaning they can only offset the tax paid against their liabilities during the registration period.
Q7. What happens if an NRTP fails to renew or extend their GST registration?
Ans. If an NRTP fails to renew or extend their GST registration after the initial period, their registration will become invalid, and they will no longer be authorized to make taxable supplies in India. Any taxable supplies made without a valid registration could attract penalties under GST law.

A Non-Resident Taxable Person (NRTP) under the Goods and Services Tax (GST) framework refers to any individual, business, or organization that occasionally supplies goods or services in India but does not maintain a fixed place of business or residence within the country. This classification applies to foreign entities or individuals engaging in such transactions, requiring them to adhere to GST regulations in India.

GST Registration Requirements for NRIs

All non-resident taxable persons are obligated to register for GST in India, regardless of annual turnover or other criteria. According to the GST Act and Rules, GST Registration must be completed at least five days prior to the commencement of business activities. Consequently, foreign entities planning to supply goods or services to India must secure GST registration promptly.

GST Registration Process for Non-Resident Taxable Persons

1. Application Timing:

Any individual or entity meeting the definition of a non-resident taxable person must apply for GST registration at least five days before commencing business activities.

2. High-Sea Sales and GST Registration:

For transactions such as High-Sea Sales (HSS)—where goods are sold while in transit, post-dispatch from the origin but before arrival at the destination—the law requires GST registration in the state or Union Territory near the baseline closest to the territorial waters where the sale occurs. For example, if a high-sea sale occurs near Mumbai, GST registration must be obtained in Maharashtra.

Steps for GST Registration:

1. Form Submission:

Submit Form GST REG-09 electronically on the Common Portal.
The form must be signed or verified electronically through EVC (Electronic Verification Code).

2. Document Requirements:

A self-attested copy of a valid passport for individuals.
For companies, the tax identification number or equivalent from the country of origin must be submitted (equivalent to a PAN in India).

3. Advance Tax Deposit:

Upon submission of the application, the Common Portal generates a temporary reference number.
This number is used to make an advance tax deposit in the applicant’s electronic cash ledger.

4. Acknowledgment Issuance:

Once the advance tax is deposited, an acknowledgment is provided electronically.

GST Registration for OIDAR Services

Non-resident entities providing online information and database access or retrieval (OIDAR) services to non-taxable online recipients in India must submit their application electronically using FORM GST REG-10.

Documents Required for GST Registration

Non-resident taxable persons must furnish the following documents during registration:

1. Proof of Place of Business:

For owned premises: Property tax receipt, municipal record, or electricity bill.
For rented premises: Valid rent/lease agreement along with ownership proof of the lessor.
For shared or consented premises: Consent letter with supporting ownership documents of the consenter.

2. Identity Proof:

Passport copy with visa details.
For businesses, tax identification number or unique identification number issued by their home country, or PAN if applicable.
Certificate of Incorporation for companies.

3. Additional Documents:

Power of attorney/authorization letter for the authorized signatory.
License issued by a foreign country (if available).
Clearance certificates issued by the Government of India (if available).

GST Deposit for Non-Resident Taxable Persons

NRIs must make an advance deposit equivalent to their expected GST liability during the registration validity period. If an extension is sought, an additional deposit is required based on estimated tax liability for the extended period. Upon payment, the system credits the amount to the electronic cash ledger, enabling the issuance of the GST registration certificate.

Validity and Extension of GST Registration

GST registration for non-resident taxable persons is typically granted for a specific period based on the applicant’s request and deposit amount. For extensions, an application must be submitted using FORM GST REG-11 before the registration expires.

Key Instructions for Non-Resident Taxpayers

The applicant’s name must match the passport.
Applications must be submitted at least five days before business commencement using FORM GST REG-09.
The application must include a valid tax identification number, unique identification number, or PAN (if applicable).
All applications must be verified and signed using Electronic Verification Code (EVC).

Provisional and Final GST Registration

Provisional Registration:

Submit FORM GST REG-09 online along with a valid passport copy and advance tax deposit based on self-estimation.

Final Registration:

File FORM GST REG-26 electronically, providing all tax and GST details within three months of provisional registration.
A GST certificate will be issued in FORM GST REG-06 if all details are accurate.
If discrepancies arise, the registration may be canceled using FORM GST REG-28, unless a satisfactory reply is submitted through FORM GST REG-20.
Non-resident taxable persons (NRTPs) must electronically file their GST returns using Form GSTR-5 on the official GST portal (www.gst.gov.in). The tax rates applicable fall into four main categories: 5%, 12%, 18%, and 28%.

FAQs

Q1. Who is considered a Non-Resident Taxable Person (NRTP) under GST law?

Ans. A Non-Resident Taxable Person (NRTP) is an individual or business entity that does not have a fixed place of business or residence in India but occasionally undertakes supply of goods or services in India. Such persons are required to register under GST irrespective of the threshold limit.

Q2. Is GST registration mandatory for NRTPs even if their turnover is below the threshold limit?

Ans. Yes, GST registration is mandatory for NRTPs irrespective of their turnover. They must register before making any taxable supply in India and cannot claim the benefit of the exemption threshold available to regular taxpayers.

Q3. How can an NRTP apply for GST registration?

Ans. An NRTP can apply for GST registration by following these steps:

1. Visit the GST portal (https://www.gst.gov.in).

2. Complete the Form GST REG-09.

3. Submit supporting documents, including:

Passport (for individual applicants),
Tax Identification Number or unique identification number from the resident country,
Bank account details,
Proof of the address of business operations in India.

4. Pay the prescribed advance tax.

Upon submission and verification, the GST registration certificate will be issued in Form GST REG-06.

Q4. Is there a validity period for GST registration as an NRTP?

Ans. Yes, GST registration for an NRTP is valid for the period specified during the registration process or up to 90 days from the date of registration, whichever is earlier. The NRTP can extend this period by applying for an extension through Form GST REG-11, subject to approval by the GST officer.

Q5. Is an NRTP required to pay tax in advance during registration?

Ans. Yes, NRTPs are required to deposit an amount equal to the estimated tax liability for the registration period in advance. This payment is made via the electronic cash ledger on the GST portal. Additional payments may be required if the tax liability exceeds the initial estimate.

Q6. Can NRTPs claim input tax credit (ITC) on GST paid?

Ans. No, NRTPs are not eligible to claim Input Tax Credit (ITC) on the GST paid. They operate on a cash-and-carry basis, meaning they can only offset the tax paid against their liabilities during the registration period.

Q7. What happens if an NRTP fails to renew or extend their GST registration?

Ans. If an NRTP fails to renew or extend their GST registration after the initial period, their registration will become invalid, and they will no longer be authorized to make taxable supplies in India. Any taxable supplies made without a valid registration could attract penalties under GST law.