What is GST?
GST (Goods and Services Tax) is the prodigious indirect tax reform in India. GST is an individual tax on the supply of goods and services. It is a destination based tax. GST has subsumed taxes like Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc.
GST is a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by states and Central. Businesses are required to obtain a GST Identification Number in every state where they are being registered.
Who need to mandatorily obtain GST Registration
The following categories of persons are required to obtain registration compulsorily under this Act:
- If making any supply of inter-State taxable goods;
- Casual taxable individual/s making taxable supply;
- If liable to pay tax under reverse charge;
- If required to pay tax under section 9 (5) (“electronic commerce operator”)
- If Non-resident is making taxable supply;
- If required to deduct tax under section 51 (Tax Deduction at Source);
- If providing goods or services or both on behalf of other registered taxable persons whether as an agent or otherwise;
- Input service distributor;
- If providing goods and/or services, other than supplies specified under section 9 (5), through such electronic commerce operator who is required to collect tax at source under section 52,
- Every electronic commerce operator;
- If supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person;
- Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.
Benefits of Registration under GST
- Legal identification and recognition as supplier of goods or services.
- Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST, if due on supply of goods or services or both by the business.
- Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
GST Registration for Foreigners
A non-resident foreign taxpayer is the person or company which is engaged in making taxable supplies of products/services or both in any place of India through any means, but has no permanent location of business/service or residence in India.
Form for GST registration of NRI :-
- GST REG-09– Application for Registration of Non-Resident Taxable Person
- GST REG-10– person supplying online information and data base access or retrieval services from a place outside India to a person in India
NRI Pre -requisites to Obtain Registration
- NRI has to apply for registration at least five days prior to commencing his business in India using a valid passport.
- A business entity incorporated or established outside India, has to submit the application for registration along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its Permanent Account Number, if available.
Instructions to File GST Registration Application for NRI
- Enter name of the applicant (Non-Resident taxpayer) as mentioned in their passport.
- The applicant shall apply for registration on GST portal, using the form GST REG-09 at least Five days prior to commencement of the business.
- At the time of online application, the applicant is required to provide email Id and mobile number for verification and future communication. Both will be verified through OTPs (One Time Passwords) sent separately for each, prior to filling up Part-B of the application.
- Further, in case business declares an individual as Authorized Signatory, the applicant need to upload scanned copy of the declaration signed by the Proprietor/all Partners/Karta/Managing Directors and whole time Director/Members of Managing Committee of Associations/Board of Trustees etc.
- Application filed must be duly signed or verified through EVC (electronic verification code), a new mode of electronic verification is based on Aadhaar Card.