GST: Planning to invest in India? GST registration for NRIs

The government in an official notification said that if you are existing Taxpayer under VAT, Service Tax and Central Excise, you can enroll yourself at the GST Portal. Enrolment window will remain open till next three months.

While the traders in India are gearing up for the third phase of registration, if you are a non-resident and planning to invest in India, you need to register too.

According to ClearTax.com. the Goods and Services Tax Law has defined a ‘non-resident taxable person’ as any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

In simple words, any and all the businesses which are supplying goods or services or data retrieval services from databases located outside India will fall under this definition and will come under the purview of the Goods and Services Tax law.

Here's how NRI can register themselves:

A non-resident taxable person will file electronically an application for registration using the FORM GST REG-09 along with a self-attested copy of his valid passport. The application must be duly signed or verified through EVC or Electronic Verification Code, ClearTax said.

EVC is a new mode of electronic verification based on Aadhaar card. All forms uploaded in the GST Portal must either be signed or verified through EVC.

Also, the form must be submitted at least five days prior to the commencement of business. In case, it is a foreign business entity (incorporated or established outside India) the application for registration shall be submitted along with its tax identification number of that country (similar to our PAN) or its PAN (if it has one).

An advance deposit of tax (based on estimation) must also be submitted along with the application.

Final Registration

Final registration will be made in the same way as in the case of resident taxpayers as follows:

• If the person wishes to register under GST, then he will submit an application electronically using the FORM GST REG–26. Any information must be furnished within a period of three months.
• If the information is correct and complete, the final GST registration will be given in FORM GST REG-06.
• If the information is not correct, then the officer will issue a show-cause notice using FORM GST REG-27. A reasonable opportunity of being heard will be given after which the provisional registration will be cancelled through the FORM GST REG-28.
• If the applicant’s reply is satisfactory then the show cause notice issued can be nullified by issuing an order via the FORM GST REG- 20.

So NRIs get yourself registered now and do not wait for three months to end.

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