All About NRTP under GST Act 2017

The Goods and Services Tax (GST) is a tax that applies to both goods and services. The GST law is an indirect tax that came into effect on July 1, 2017 in India. Many indirect taxes have been replaced with GST, which is a single statute. In India, the GST law is a multi-stage, destination-based tax.

GST, on the other hand, is an Indian tax. However, there are some transactions that may apply to non-residents as well (including NRIs, OCIs, foreign citizens). The following are some terms and provisions that apply to Non-Residents:

How does GST affect me: I am an NRI?

This article applies to you if you are importing products or services from outside India, managing a business in India on behalf of a person who lives outside India, or if you are a non-resident.

Read more about: ITC on Marketing Expenses/Sales Promotion Scheme 

Read more about: All about GST Offenses, Penalties & Appeals

Who is a ‘Non-Resident Taxable Person’?

NRTP: A ‘Non-Resident Taxable Person’ is a person who, on occasion, engages in transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but does not have a fixed place of business or habitation in India.

Any person who, on an occasional basis, engages in transactions involving the supply of goods or services, or both, whether as principal, agent, or in any other role, but does not have a fixed place of business or habitation in India, as defined by the Goods and Service Tax Law.

The registration requirement for a non-resident taxable person is laid out in Section 24 of the GST law. It also outlines which organisations and entities are required to register for GST but are not subject to the Rs. 20,00,000/-or 10,00,000/- lakh minimum threshold restriction.

As a result, whether you conduct a one-time or regular taxable transaction, all non-residents must register with the Goods and Service Tax.

Registration Requirement of Non-Resident Taxable Person

A non-resident taxable person is required to register under Section 24 of the GST statute, and there is no threshold limit. As a result, Non-Resident Taxable Persons are not eligible for the Rs. 20 lakh/ Rs. 10 lakh minimum threshold limit.

As a result, any non-resident who meets the definition of a Non-Resident Taxable Person is required to register for GST, regardless of whether the business engages in one-time or frequent taxable transactions.

• Every person who fulfills the criterion of a Non-Resident Taxable Person must register for GST at least 5 days before they start doing business.
• In order to register for GST, Non-Resident Taxable Person will need to submit its own country’s Tax ID or Unique Number.
• Non-Resident Taxable Person does not require a PAN of India and can instead rely on its valid passport.
• Applicants for registration do not have to follow the same procedures as other applicants. A streamlined application, such as REG-09, can be submitted.
• Furthermore, in the case of a high-sea sale, under the GST Law, anyone who supplies from India’s territorial seas must register in the coastal state or Union territory closest to the suitable baseline.
• For example, if a high-sea sale occurs on the Haldia coastline, the GST registration must be done in West Bengal.
• In the case of Non-Resident Taxable Person GST registration, the Common Portal generates a temporary reference number electronically at first. The goal of this temporary number is to allow him to deposit tax in his electronic cash ledger ahead of time, after which an acknowledgment will be issued.

Registration Procedure for a Non-Resident Taxable Person

The provisions relating to the registration of a Non-Resident Taxable Person are found in Rule 13 of registration under the Central Goods and Services Tax Rules.

1. A non-resident taxable person must make an application for registration using FORM GST REG-09.
2. The application must be accompanied by a certified copy of a valid passport.
3. The business must provide its tax identification number or any other government-issued unique identifying number (of its original country).
4. The application must be submitted at least 5 days before the company’s first day of business in India.
5. the registration form must be properly signed by an authorised signatory who must be a resident of India and have a valid PAN via an Electronic Verification Code,
6. An advance deposit equivalent to the expected tax that they will incur throughout the course of their operation must be submitted with the application.

Verification and Registration

• Following the submission of an application under Rule 13, the procedures for verification and registration granted under Rules 9 and 10 will apply to it, just as they would to any other application received in an ordinary situation.
• If any anomalies are discovered in the application, they must be reported to the applicant in FORM GST REG-03, and the applicant must respond in FORM GST REG-04.
• The authorities will grant the non-resident taxable person a GSTIN together with a registration certificate in FORM GST REG-06 if they are satisfied. If the application is denied, the rejection shall be communicated using FORM GST REG-05, and the reasons for the denial should be documented in writing.
• If a non-resident person wants to extend the registration period, an application in the form GST REG-11 must be submitted online through the Common Portal before the expiry of the initial registration period.

GST Advance Tax Payment by NRTP

GST provisions specify that a non-resident taxable person must submit an advance GST deposit. This tax advance payment shall be in an amount equal to such person’s expected tax due for the period for which registration is sought.

• Any tax that is paid in excess at the end of the GST registration term will be refunded to the Non-Resident Taxable Person upon submission of final returns.
• The GST registration period, which is originally imposed by the Non-Resident Taxable Person, can be extended by the non-resident taxable person. An application in the form GST REG-11 should be submitted electronically on the GST Common Portal for this purpose.

Other Transactions

Other than Non-Resident Taxable Person, GST laws apply to a variety of other transactions involving Non-Residents, such as

• Renting of Immovable Property in India, for example, if an NRI owns an immovable property in India that is used for commercial or business purposes, GST laws will apply to that transaction.
• GST laws may also apply to numerous other transactions involving NRIs, OCIs, PIOs, Expatriates, Foreign Companies, and Other Non-Residents.
• Non-residents provide consulting services to Indian residents. GST may be applicable to such transactions under the import laws.

NRIs, Expatriates, and Other Non-Residents may find the above material useful when they have questions about GST provisions in India, such as:

• What are the GST rules for NRIs, OCIs, Foreign Corporations, and Foreign Citizens?
• I am a non-resident alien. In India, I own an immovable property that I rent out. Is it true that the GST rules apply to such a transaction?
• I work for a global organisation situated outside of India. I provide consulting services to the organisation. Is GST applicable to you?
• Does GST apply to non-residents, such as NRIs, OCIs, and foreign corporations?
• I am a non-resident Indian (NRI), expatriate, or employee of a foreign company. In India, I’d like to conduct some business transactions. Is the Goods and Services Tax (GST) applicable? What are the rules and regulations?
• What are the GST rules and processes for non-residents and foreign companies?