Every NRI business owner interested in running a business in India needs GST registration. Section 24 of the Central GST Act, 2017, has mandated this. The Act provides the details regarding GST registration for NRIs.
If you are making a supply from Indian territorial waters, then you need to get registration from the state or Union Territory where the nearest baseline is. So, if such a sale happens near the shore of Chennai, obtain the GST registration in Tamil Nadu.
Steps for registration
- You need to file the application for GST registration online in the designated portal.
- You have to use the Form GST REG-09. Sign the application, or get it verified through an Electronic Verification Code (EVC).
- Your authorized signatory, who is an Indian resident having an Indian Permanent Account Number (PAN), needs to sign the application.
- Submit the form five days before the commencement of the business.
- The business might be a foreign business entity, incorporated abroad. Then, you would need to submit the tax identification number received in the country of incorporation. This is akin to the PAN in India.
- You would need to make an advance tax payment. This will be based on an estimation of the tax liability for the period of registration. The amount remains credited in the Electronic Cash Ledger. When you file the tax return, this amount would be adjusted.
- For an NRI, the registration is valid 90 days from the registration date. You can extend this by a further 90 days. For that, you need to apply through the Form GST REG-11.
- After registration, you would need to file the monthly GST return through the Form GSTR-5. The filing date is either the 20th of the next month or within a week of GST registration expiry, whichever comes earlier.
Documentation requirement
- Self-attested copy of your passport and visa
- Your residence address proof in the foreign country
- PAN of the Indian authorized signatory
- Photograph of the Indian authorized signatory
- Proof of appointment of your Indian authorized signatory
- Proof of principal place of business – copies of utility bills, tax receipts, rent agreement, etc.
- Proof of bank account
