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Non-resident taxable person under GST

Who is a non-resident taxable person?

"Non resident taxable person" is defined under section 2(77) of the CGST Act 2017. ”Non resident taxable person (NRTP) means any person who occasionally undertakes transactions involving 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, NRTP is a person who temporarily supplies goods or services within India even though he is not a resident of the taxable territory.

GST provisions applicable to a non-resident taxable person

Registration

As per section 24 of the CGST Act, registration under Goods & Service Tax is compulsory for the non-resident taxpayer if he is engaged in any kind of taxable supply in the taxable territory. There is no threshold limit for registration.

He has to apply for GST registration in FORM GST REG-09 at least before five days to start any business in India

Input tax credit

Goods or services received by the NRTPs are covered under blocked credit. Accordingly, they will not be entitled to claim the input tax credit (ITC). However, they are free to claim the ITC of the goods imported by them from outside India.

Payment and refund

NRTP has to make an advance deposit of tax in an amount equivalent to his estimated tax liability for the registration period. Such deposit shall be credited to the electronic cash ledger of non resident and utilized in the manner provided under section 49 of the CGST Act.

The balance amount of the advance deposit will be refunded to him after filing all returns for the registration period.

Return

NRTP has to file a GSTR-5 return within a period of seven days after the date of expiry of registration. In case, the registration period is for more than one month, monthly return (s) would be filed by the 20th of the month succeeding the tax period, and thereafter return for the remaining period would be filed within a period of seven days. Further, Circular No 45/19/2018 has been clarified that FORM GSTR-5 for a non-resident taxable person shall be sufficient instead of filing the details in FORM GSTR 1 & FORM GSTR 3B.

Composition scheme A no-resident taxpayer cannot opt for the composition scheme under GST. 


Latest updates

28th May 2021 - GSTR-5 for March, April, and May 2021 can be filed up to 30th June 2021.

1st May 2021 - GSTR-5 for March 2021 and April 2021 can be filed up to 31st May 2021


Conditions for registration as a non-resident taxable person in GST

  • Foreigner applicant must have authorized signatory in India
  • Authorized signatory must have valid PAN, Indian mobile number, and email address
  • Foreigner applicant must have all the specified documents as required for registration
  • Foreigner applicant must have a place of business in the taxable territory for the registration period
  • Foreigner applicant must have a passport number or any other unique number on the basis which he is identified by the government of that country.

Documents required for registration as a non-resident taxable person

(i) Photograph of authorized signatory

(ii) Letter of authorisation for appointment of authorized signatory

(ii) canceled cheque/first page of passbook/bank statement

iv) Proof of principal place of business

Validity of registration certificate

Registration certificate issued to a non-resident taxpayer will be valid for the period mentioned in the registration application that cannot be beyond 90 days from the effective date of registration.

Where a registered non resident taxpayer intends to extend the period of registration, an application in FORM GST REG-11 shall be submitted electronically through the common portal. The validity of registration can be extended once for an additional period of 90 days if the extension application has been filed before the expiry of the initial validity period.

Summarised version

GST registration

Mandatory

Registration form

GST REG-09 (before 5 working days)

Validity

90 days from the effective date of enrollment

Input tax credit

Not available

GST return

GSTR-5 by 20th of next month

Payment

Advance deposit

Composition scheme

Not available


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CA Anand Singh

CA Anand Singh

I am a practising Chartered Accountant with 6 years of experience in Direct and Indirect Taxation, FEMA, Corporate Law and Audit etc.