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GST Registration for Foreigners

GST Registration for Foreigners and NRIs in India is mandatory for those supplying goods or services in the country. Kanakkupillai simplifies the process by offering expert assistance and seamless online registration. Ensure compliance with Indian tax laws and avoid penalties. Get your GST registration done quickly and efficiently, apply with Kanakkupillai today!

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GST Registration for Foreigners in India

Over the past two years, India's GDP has been growing at a commendable pace. India's economy, which is among the fastest-growing in the world, is attracting businesses from around the globe. The growth has opened doors for foreign companies, investors, and entrepreneurs who are looking to explore new potential in India's dynamic market. Many international companies are currently growing their business in India as a result of government policies and initiatives. Establishing operations, selling goods, rendering services, and adhering to Indian tax regulations are all crucial components of conducting business in India.

Under the Goods and Services Tax (GST) regime, GST registration is one of the most important prerequisites. Any foreign business that supplies goods or services in India, whether directly, through an agent, or via e-commerce, is mandated to register for GST before starting operations. Under the GST Act of 2017, foreign businesses fall under the category of Non-Resident Taxable Person (NRTP). Unlike domestic businesses, non-residents must appoint an authorized representative in India and deposit an advance tax payment before registering.

What is GST Registration?

The process of acquiring a Goods and Services Tax Identification Number (GSTIN), which enables companies to collect and send GST to the Indian government lawfully, is known as GST registration. Business firms that surpass the prescribed turnover for some categories—such as import-export companies, e-commerce operators, and non-resident taxable people (NRTPs)—are required to do so. The Central Goods and Services Tax Act, 2017 (CGST Act) governs GST registration in India.

Who Needs GST Registration in India?

Under the GST Act 2017, businesses and individuals who are engaged in the supply of goods or services have to register for GST if they meet specific eligibility. Registration is mandatory for:

1. Businesses Exceeding the Turnover

Businesses which have an annual aggregate turnover exceeding ₹40 lakhs (for goods) or ₹20 lakhs (for services) must register under GST.
For unique category states, the threshold is ₹20 lakh for goods and ₹10 lakh for services.

2. Mandatory GST Registration Categories

GST registration is required for the following regardless of the turnover of the business:

Businesses that supply goods or services across state borders.
Individuals or businesses occasionally supply taxable goods or services in India without a fixed place of business.
E-commerce Operators that facilitate the online supply of goods or services.
Entities receiving specific services where tax liability falls on the recipient.
Input Service Distributor
Agent of the person who makes taxable supply of goods or services.

3. GST Registration for Foreigners & Non-Resident Entities

Foreign businesses and individuals have to register under GST if they fall under one of the following categories:

Non-Resident Taxable Person (NRTP): Any foreign business supplying goods or services in India but does not have a fixed place of business in the country. It is pertinent to note that registration must be obtained before starting business activities in India.
Foreign E-Commerce Operators: Foreign entities that provide Online Information Database Access and Retrieval (OIDAR) services to Indian consumers. Even without a physical presence, registration is mandatory for digital service providers.
Importers of Services: Foreign companies providing taxable services to Indian businesses. The Indian recipient is liable to pay GST under the Reverse Charge Mechanism (RCM).
Person Supplying Online Money Gaming: Every person who supplies online money gaming from a place outside India to a person in India
Trade Fair Participants & Temporary Suppliers: Foreign exhibitors supplying goods/services at trade fairs or exhibitions in India require temporary GST registration. Registration is valid for 90 days and can be extended upon request.

Benefits of GST Registration in India

GST Registration offers several benefits to businesses operating in India. Some of the advantages are:

Legal Operations of Business: GST registration allows foreign businesses to conduct business in India legally and through lawful transactions and prevents any legal complications.
Seamless Trade Access: Foreign businesses can directly engage with Indian customers, expanding market reach.
Input Tax Credit (ITC) Benefits: Businesses registered with the GST entities can claim tax credits on purchases and services used for business in India.
Avoid Penalties: Not registering GST can lead to penalties and restrictions on business activities in India.
Enhanced Credibility: GST registration helps in building trust with Indian consumers, suppliers, and government authorities.
Eligible for Refund: Upon GST Registration, foreign businesses can claim refunds for taxes paid on goods/services exported from India or excess tax payments.

Documents Required for GST Registration for Foreigners

Foreign businesses need the following documents to apply for GST registration in India:

1. Identity and Business Proof

A copy of the individuals' passports (notarized and apostilled).
For Foreign Companies: Certificate of Incorporation issued by the home country’s regulatory authority.
Tax Identification Number (TIN) or equivalent document from the home country.

2. Business Registration Proof

Foreign Business License (if applicable) or any government-issued proof of existence.
Memorandum of Association and & Articles of Association for companies.

3. Address Proof

For foreign entities with an Indian Office: The lease agreement or utility bill of the registered office in India.
For those without a fixed place in India: Address proof of the overseas headquarters.

4. Bank Account Details

Indian Bank Account Statement (if available) or foreign bank account details of the entity.
Canceled Cheque or a bank certificate confirming the account details.

5. Authorized Signatory Documents

An appointment letter from an Indian-authorized signatory must be from an Indian resident.
PAN and Aadhaar Card of the Authorized Signatory (if an Indian citizen).
Digital Signature Certificate (DSC) of the authorized person for companies.

6. GST Registration Form, GST REG-09

GST Registration Process for Foreigners in India

Follow the below-mentioned procedure for GST Registration:

Step 1: Check the Type of Registration

Foreign entities must first identify the correct category under GST:

Non-Resident Taxable Person (NRTP): Foreign businesses that supply goods or services in India without a permanent place of business. FORM GST REG-09 shall be used for GST Registration.
OIDAR (Online Information Database Access and Retrieval Services): Foreign service providers offering digital services (e.g., online streaming, software downloads, or cloud-based platforms) to Indian customers. FORM GST REG-10 shall be used for GST Registration.

Step 2: Appoint an Authorized Representative in India

Since foreign businesses do not have a physical presence in India, they have to:

Appoint an Indian tax representative to handle GST compliance.
This representative will be responsible for filings, tax payments, and official correspondence with Indian tax authorities.
The GST Registration application for an NRI Taxable person shall be duly signed or verified electronically by his authorized signatory.

Step 3: Gather the Documents

Foreign businesses must submit the following documents:

A valid passport and proof of business activity of the individual.
For Companies: Certificate of incorporation from the home country.
Tax Identification Number (TIN)
Indian Bank Account Details
Address Proof (if applicable)
Authorization Letter that appoints an Indian representative as the authorized signatory.

Step 4: File GST Registration Application (Form GST REG-09)

The application must be submitted online via the GST portal (gst.gov.in).
Along with the application Form GST REG-09, all required documents must be uploaded at least 5 days prior to the commencement of business in India.
Upon applying, the portal generates a Temporary Reference Number (TRN) for tracking.

Step 5: Payment of Advance Tax

Pre-deposit GST based on estimated tax liability.
The amount shall be credited to their GST ledger and adjusted against actual tax dues.

Step 6: Verification and Issuance of GSTIN

The GST officer shall verify the application.
If everything is in order and correct, a temporary reference number shall be given.

Exemptions and Special Considerations

The following are exempted from GST Registration:

Diplomatic and International Organizations: Under special provisions, foreign embassies, consulates, and UN bodies are exempted from GST Registration.
Foreign Entities with Indian Subsidiaries: If a foreign company operates through an Indian-registered subsidiary, the Indian company handles GST registration.
Temporary Exemptions for Trade Fairs and Exhibitions: Depending on the nature of the transaction, some temporary foreign exhibitors may be granted GST exemptions.

Compliance and Filing Requirements

GST Registration is not the end; the foreign businesses registered under GST must adhere to specific compliance and tax filing obligations:

Monthly GST Return Filing (GSTR-5) to give details about taxable transactions, tax collected, and ITC claims.
Advance Tax Payment
Timely GST Payments or before the 20^th of the following month to avoid penalties.
Proper record maintenance, such as transaction records, invoices, and tax payments, is required as per Indian tax laws.
Compliance with GST Notices promptly

Why Choose Kanakkupillai for GST Registration for Foreigners in India?

Registering under GST in India as a foreign entity can be difficult, as it requires thorough preparation of documents and compliance with tax rules. With over 50,000+ national and international clients, Kanakkupillai guarantees a smooth and easy GST registration process with expert advice. We provide:

Tailored Solutions: Every business has unique requirements, and our experts understand your specific case to provide a structured GST registration approach. Whether you are an e-commerce operator, service provider, or a foreign exhibitor, we tailor the process to suit your needs.
Expertise in International Taxation & GST Compliance: Our team consists of professionals who are well-versed in Indian tax law, GST framework, international taxation, and regulatory requirements. We ensure that your registration complies with all legal provisions and avoids common pitfalls.
End-to-End Support: From filing the application form to obtaining your temporary GST Identification Number (GSTIN), we handle everything from preparing the required documents to application submission, follow-ups, and liaising with tax authorities.
Timely Registration: We ensure your GST registration is completed within the stipulated time. Additionally, we assist in advance tax deposit calculations so that your business remains fully compliant.
Transparent Pricing: At Kanakkupillai, we believe in transparent and affordable pricing with no hidden charges. You get professional services at competitive rates, ensuring value for money.
Reliable Partner for Foreign Businesses in India: With years of experience in handling foreign entity registrations, we provide trusted solutions for smooth business operations in India. Whether you are setting up a short-term business or expanding into India, we simplify GST registration and compliance for you.