Non-Resident Taxable Person In GST- All you wanted to know

Goods and Services Tax (GST) has revolutionized the Indian taxation system by replacing multiple indirect taxes with a single tax. It has made the tax system more transparent and easier for businesses. But what about businesses that are not based in India? How do they comply with the GST rules and regulations? This is where the concept of Non-Resident Taxable Person (NRTP) comes into play.

What is a Non-Resident Taxable Person (NRTP)?

A Non-Resident Taxable Person (NRTP) is an individual or a business entity that occasionally supplies goods or services in India but does not have a fixed place of business in India. In other words, an NRTP is a foreigner who is not based in India but sells goods or services to customers in India.

NRTPs are required to register themselves under GST if they want to supply goods or services in India. The registration process is similar to that of a regular taxpayer, but there are some additional requirements that an NRTP needs to fulfill. Let’s take a look at them.

Registration Process for NRTPs

The registration process for NRTPs is as follows:

The NRTP needs to apply for registration using Form GST REG-09. The form can be filled online on the GST portal.
Provide a valid email address and phone number for the registration process.
Their Permanent Account Number (PAN) or Tax Identification Number (TIN) from their home country.
The NRTP needs to provide a valid address proof of their place of business outside India.
A valid bank account number from their home country for receiving refunds.
Appoint an authorized representative in India who will be responsible for complying with the GST rules and regulations on behalf of the NRTP.
Once the registration process is complete, the NRTP will be issued a unique identification number called the GSTIN.

Compliance Requirements for NRTPs

Once an NRTP is registered under GST, they need to comply with the following requirements:

File GSTR-5 for each tax period. The tax period is the duration for which the NRTP is required to file returns. The tax period can be monthly or quarterly, depending on the choice of the NRTP.
Pay taxes on the supply of goods or services made in India. The rate of tax will depend on the type of goods or services supplied.
Appoint an authorized representative in India who will be responsible for complying with the GST rules and regulations on behalf of the NRTP.
Maintain proper records of all the supplies made in India and the taxes paid on them.
The NRTP needs to file an annual return using Form GSTR-5A.

Advantages of Registering as an NRTP

There are several advantages of registering as an NRTP under GST:

NRTPs are allowed to claim refunds of the taxes paid on the supplies made in India.
Can carry forward any Input Tax Credit (ITC) available to them.
NRTPs do not need to provide a tax invoice for supplies made in India. Instead, they can provide a bill of supply.
Can appoint an authorized representative in India to comply with the GST rules and regulations on their behalf.

Conclusion

Registering as an NRTP under GST can be beneficial for businesses that occasionally supply goods or services in India but are not based in India. The registration process is simple, and once registered, NRTPs need to comply with the same rules and regulations as regular taxpayers. If you are an NRTP, it is advisable to consult a tax expert to understand the registration process and compliance requirements in detail.