GST Registration and Compliance for Non-Resident Businesses in India
India’s Goods and Services Tax (GST) regime applies to both resident and non-resident businesses supplying goods or services in the Indian market. If your business is incorporated outside India but engages in any taxable transaction within India—either directly or through digital platforms—GST registration and compliance become mandatory.
At Jain Prachi & Company, we offer end-to-end GST advisory, registration, and return filing services specifically tailored to the needs of non-resident entities operating or supplying in India.
Who Needs GST Registration in India?
Under the GST Act, non-resident taxable persons (NRTP) are required to obtain GST registration if they supply taxable goods or services in India.
Scenarios where GST registration is mandatory for non-resident businesses:
- Selling goods at exhibitions, trade fairs, or on e-commerce platforms
- Offering online software, consulting, design, or digital services to Indian customers
- Importing services and claiming input tax credit (ITC)
- Engaging Indian agents, distributors, or subsidiaries to make supplies on your behalf
Important: GST registration must be obtained at least 5 days prior to the commencement of business in India.
Types of GST Registrations for Non-Residents
- Non-Resident Taxable Person (NRTP)
Applicable to businesses not having a fixed place of business in India but intending to make taxable supplies.
- Requires appointment of an authorised local representative
- Valid for a period of 90 days (extendable)
- Must pay advance tax based on estimated turnover
- Eligible for GST refunds if applicable
- Online Information Database Access and Retrieval (OIDAR) Services
Applicable to foreign service providers supplying online services to Indian consumers.
- No physical presence or local representative needed
- Covers streaming, SaaS, e-books, gaming, cloud services, etc.
- GST payable on a reverse charge or forward charge basis depending on B2B or B2C model
Key GST Compliance Requirements for Non-Resident Entities
Once registered, non-resident businesses must comply with the same obligations as Indian entities:
- GST Return Filing
- GSTR-5 for NRTP: Monthly return capturing sales, purchases, input tax credit, and tax liability
- Due date: 20th of the following month or 7 days after expiry of registration
- Tax Payment
- Advance tax deposit required at the time of registration
- Final liability to be paid through GSTR-5
- No cash ledger refund unless registration is transferred to regular taxpayer status
- E-Invoicing and E-Way Bills
- E-invoicing may apply if turnover thresholds are met
- E-way bills required for transportation of goods exceeding ₹50,000 in value
Common Challenges Faced by Non-Resident Businesses
- Difficulty in understanding India-specific tax rules and timelines
- No access to Indian bank accounts or payment gateways without proper registration
- Delays in appointing an authorised representative
- Errors in advance tax estimation leading to penalties
- Unavailability of Input Tax Credit (ITC) for certain categories
How Jain Prachi & Company Assists You
Navigating India’s GST laws can be complex for foreign companies. Our firm ensures that your GST obligations are fully met without delays or compliance errors.
Our Services Include:
- Advisory on GST applicability and registration requirements
- Acting as Authorised Representative for NRTPs
- Filing GSTR-5 returns and reconciling Input Tax Credit
- Managing tax payments and refunds
- OIDAR compliance for foreign digital service providers
- Representation during GST audits or notices
