GST Registration for Foreigners & NRIs

GST Registration for Foreigners & NRIs

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GST Registration for Foreigners & NRIs

Goods and Services Tax (GST) is an indirect tax applicable to the supply of goods and services in India. It replaced multiple indirect taxes such as VAT, excise duty, and service tax, bringing them under a single, unified tax structure. This reform simplified taxation, reduced cascading effects, and improved transparency in the tax system.

However, GST registration for Foreigners and Non-Resident Indians (NRIs) can be comparatively more complex due to additional legal and compliance requirements. This article provides a comprehensive overview of GST registration for foreigners and NRIs, covering its meaning, eligibility criteria, registration process, document requirements, and ongoing compliances to help applicants navigate the process with clarity and confidence.

Who Needs GST Registration in India?

As per Indian GST law, obtaining GST registration is mandatory when a business crosses the prescribed turnover threshold. In addition to Indian residents, Foreign Nationals and Non-Resident Indians (NRIs) who are involved in making taxable supplies in India are also required to obtain GST registration, irrespective of their residential status.

The following categories of foreigners are required to obtain GST registration in India:

Foreigners Supplying Goods or Services in India

Any foreign national or NRI supplying goods or services to customers in India must obtain GST registration. This requirement applies particularly where the foreign entity:

  • Has a Permanent Establishment (PE) in India

  • Engages in e-commerce operations

  • Is involved in the import of goods or services

  • Supplies digital or online services, especially in B2C transactions

Such entities are mandatorily required to obtain a GSTIN, even if the turnover threshold is not met in certain cases.

NRIs Engaged in Business Activities in India

NRIs who are engaged in business activities in India, or who operate through branches, offices, or business establishments in India, are required to obtain GST registration if their annual turnover exceeds the prescribed GST limits or if registration is mandatory due to the nature of their business.

Steps for Foreigners & NRIs to Get GST Registration

Step-by-Step Process for GST Registration for Foreigners & NRIs
Step 1: Obtain a PAN Card

At the initial stage, NRIs or foreign nationals planning to engage in business activities in India must obtain a Permanent Account Number (PAN). PAN is mandatory for GST registration and for appointing an authorised local representative who will handle GST compliance, return filing, and related obligations in India.

Note: Without a PAN, GST registration cannot be completed for NRIs engaging in taxable supplies in India.

Step 2: Obtain a Digital Signature Certificate (DSC)

A Digital Signature Certificate (DSC) is mandatory for submitting electronic documents on the GST portal. It is required to authenticate the GST registration application and related filings.

Step 3: Submit GST Registration Application

The applicant must visit the official GST portal and initiate the registration process by generating a Temporary Reference Number (TRN). Basic details are submitted at this stage to begin the application process.

Step 4: Aadhaar Authentication

After generating the TRN, the applicant logs in to complete Form GST REG-01. Aadhaar authentication is required to verify the applicant’s identity. An OTP is sent to the Aadhaar-linked mobile number, which must be validated to proceed further.

Step 5: ARN Generation

Once Aadhaar authentication is completed and all required documents are submitted, an Application Reference Number (ARN) is generated. This ARN allows the applicant to track the real-time status of the GST registration application.

Step 6: Respond to GST Department Notice (If Any)

The GST authority reviews the application and documents. If discrepancies or clarifications are required, a show cause notice is issued in Form GST REG-03. The applicant must respond within 7 days, submitting the necessary clarifications or documents.

Note: Issuance of a notice is not mandatory. If the officer is satisfied, the application proceeds directly to approval.

Step 7: Issuance of GSTIN

Upon successful verification, the GST department issues a GST Identification Number (GSTIN) along with the GST Registration Certificate (Form GST REG-06). The certificate can be downloaded directly from the GST portal.

Post-Registration Compliance

After receiving the GSTIN, the applicant must comply with GST return filing requirements. Returns may be filed monthly or quarterly, depending on the applicable GST scheme and business category. Timely compliance is essential to avoid penalties and suspension of GST registration.

Compliance Requirements for Foreigners & NRIs Post GST Registration

  • GST Return Filing

All GST-registered businesses are required to file GST returns within the prescribed timelines. This includes monthly or quarterly returns such as GSTR-1, GSTR-3B, and annual return GSTR-9, depending on the nature and turnover of the business. Timely return filing is essential to avoid penalties and ensure uninterrupted compliance.

  • GST Payment

GST liability on taxable supplies must be paid periodically. This includes:

  • IGST for inter-state transactions

  • CGST and SGST for intra-state transactions

Tax payments must be made within the due dates as prescribed under GST law to avoid interest and late fees.

Maintenance of Books of Accounts

Every GST-registered business must maintain accurate and up-to-date books of accounts for audit and compliance purposes. These records should include details of:

  • Sales and purchases

  • Input tax credit (ITC) claimed

  • Tax collected and tax paid

Proper record-keeping helps ensure transparency and smooth GST audits or inspections.