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

A non-resident taxable person is an individual or business entity who does not have a place of business or a fixed establishment in India and occasionally supplies goods or services in India. Under the Goods and Services Tax (GST) regime, non-resident taxable persons are required to register and comply with the GST regulations in order to carry out their business activities in India. Here is some information about non-resident taxable persons in GST:

1. Registration: Non-resident taxable persons are required to obtain registration under GST prior to carrying out any taxable supply in India. The registration process is similar to that of regular taxpayers, but non-resident taxable persons are required to provide certain additional documents such as proof of their non-resident status and details of their authorized signatory in India.

2. Validity of registration: The registration obtained by non-resident taxable persons is valid for a period of 90 days and can be extended by an additional 90 days.

3. Compliance: Non-resident taxable persons are required to comply with the GST regulations, including filing of returns and payment of taxes. They are required to file the GSTR-5 return on or before the 20th of the following month, following the month of activity. In addition, non-resident taxable persons are required to pay tax in advance before commencing their business activities in India.

4. Appointment of an Authorized Signatory: Non-resident taxable persons are required to appoint an authorized signatory in India who will be responsible for all compliances under the GST regulations.

5. Penalty: Failure to comply with the GST regulations can result in penalties, interest, and legal consequences under the GST Act.

In summary, non-resident taxable persons who occasionally supply goods or services in India are required to register under GST and comply with the GST regulations. It is important for such persons to appoint an authorized signatory in India and file returns and pay taxes on time to avoid penalties and legal consequences.

Registration process for non-resident taxable persons in GST

The registration process for non-resident taxable persons (NRTPs) in GST is as follows:

1. Go to the GST portal and click on the "Services" tab, then select "Registration" and click on "New Registration."

2. In the "I am a" dropdown, select "Non-Resident Taxable Person" and provide your email address and mobile number.

3. Enter the OTP received on your mobile and email address to proceed.

4. Fill in your personal and business details, including your name, address, nationality, and details of your authorized signatory in India.

5. Upload the required documents, such as proof of non-resident status, bank account details, and proof of appointment of the authorized signatory.

6. Once the application is submitted, an acknowledgement will be generated, which will contain a unique Application Reference Number (ARN).

7. The GST officer will review the application and may request additional documents or information. If the application is approved, the NRTP will be issued a GSTIN (Goods and Services Tax Identification Number) and can start their business activities in India.

It is important to note that the registration obtained by non-resident taxable persons is valid for a period of 90 days and can be extended by an additional 90 days. Additionally, non-resident taxable persons are required to pay tax in advance before commencing their business activities in India.

Compliance requirements for non-resident taxable persons in GST

Non-resident taxable persons (NRTPs) in GST are required to comply with certain regulations, which include:

1. Filing of returns: NRTPs are required to file the GSTR-5 return on or before the 20th of the following month, following the month of activity. This return contains details of supplies made, tax paid, and any input tax credit claimed.

2. Payment of taxes: NRTPs are required to pay tax in advance before commencing their business activities in India. This payment is required to be made in the form of a tax deposit, which can be claimed as a credit against the final tax liability.

3. Maintenance of records: NRTPs are required to maintain proper records of their business activities in India, including invoices, receipts, and other documents related to their supplies.

4. Appointment of an authorized signatory: NRTPs are required to appoint an authorized signatory in India who will be responsible for all compliances under the GST regulations.

5. Regular audits: NRTPs are subject to regular audits to ensure compliance with the GST regulations.

It is important to note that failure to comply with the GST regulations can result in penalties, interest, and legal consequences under the GST Act. Therefore, it is crucial for NRTPs to ensure they are meeting all compliance requirements.