GST registration for non-resident taxable person

Under Section 2(77) of the CGST Act, 2017, a Non-Resident Taxable Person (NRTP) is a person who does not have a fixed place of business in India but occasionally undertakes taxable supplies of goods or services in India. The key distinction from a Casual Taxable Person is that an NRTP has no fixed place of business in India at all, whereas a CTP has a fixed place in one state but is temporarily operating in another state.

Yes, under Section 24(viii) of the CGST Act, 2017, every non-resident taxable person must obtain GST registration before making any taxable supply in India. This is non-condonable and non-optional. Operating without NRTP registration attracts a penalty under Section 122. The registration must be obtained before commencing any supply - retroactive registration is not permitted.

Key differences: (1) Place of business - NRTP has no fixed place in India; CTP has a fixed place in one state but operates temporarily in another. (2) Applicability - NRTP applies to foreign entities; CTP applies to Indian entities operating across states. (3) Authorised agent - mandatory for NRTP; not required for CTP. (4) Document requirements - NRTP requires apostilled foreign documents; CTP requires standard Indian documents. (5) FEMA compliance - NRTP may need FEMA compliance for cross-border transactions; CTP does not.

Under Rule 12(2) of the CGST Rules, 2017, an NRTP must appoint a person resident in India as their authorised agent. The agent acts on behalf of the NRTP for all GST purposes: filing the registration application, filing returns (GSTR-1 and GSTR-3B), paying tax, responding to GST notices, and representing the NRTP in proceedings before GST authorities. The agent is legally responsible for ensuring GST compliance on behalf of the NRTP. The appointment must be in writing and the agent's details must be submitted with the registration application.

Yes, a foreign company with no fixed place of business in India can register as an NRTP. However, they must appoint an authorised agent resident in India to handle all GST compliance. The foreign company does not need a physical office or premises in India - the authorised agent serves as the point of contact with GST authorities. Many foreign SaaS companies use this model for serving Indian clients while maintaining their offshore operations.

NRTP registration is valid for 90 days from the date of issue. Like CTP, it can be extended by another 90 days by applying for extension before the expiry of the initial 90-day period. The maximum total validity is 180 days. For ongoing business relationships with Indian clients, it is advisable to either (a) renew/extend the NRTP registration, or (b) consider establishing a regular GST registration through an Indian entity (subsidiary, branch, or liaison office).

Required documents: (1) Certificate of incorporation from the home country (apostilled or attested), (2) PAN of the foreign entity (if obtained), (3) Passport of the authorised signatory, (4) Aadhaar of the authorised signatory (if applicable), (5) Authorisation letter appointing the Indian authorised agent, (6) Proof of authorised agent's Indian address, (7) PAN of the authorised agent, (8) Business constitution documents, (9) Bank account details, (10) Details of taxable supplies in India, (11) Estimated tax liability statement, (12) Apostilled/attested copies of all foreign documents.

Like CTP, NRTPs must deposit an advance amount equal to their estimated tax liability for the registration period before the GSTIN is issued. The deposit is adjusted against actual tax liability as per GSTR-3B returns. For digital services (SaaS, online services), the GST rate is typically 18%, so the advance deposit is approximately 18% of your estimated taxable value of supplies. For goods, the rate varies (5%, 12%, 18%, 28%). We calculate the deposit based on your contract value and billing schedule.

Yes, an NRTP can claim ITC on goods and services purchased in India for the purpose of making taxable supplies under their NRTP registration. This includes: (1) inputs used for supplies made under the NRTP registration, (2) input services such as professional services, consulting, or advertising used for the NRTP activity, (3) capital goods used in India for the NRTP activity. ITC claimed must be reversed proportionally if the goods/services are used for purposes other than the registered activity.

An NRTP must file GSTR-1 (outward supplies) and GSTR-3B (summary return) on the same schedule as regular taxpayers - monthly (for most) or quarterly (under QRMP scheme). The returns are filed by the authorised agent on behalf of the NRTP. The frequency is determined by the aggregate turnover. Due dates: GSTR-1 by the 10th and GSTR-3B by the 20th of the following month (or quarter). An annual return (GSTR-9) may also be required if the NRTP operates for a full financial year.

Yes, NRTPs making taxable supplies in India typically involve cross-border transactions that fall under FEMA regulations. Key FEMA considerations: (1) Receipt of payment from Indian clients - must be through banking channels under the Liberalised Remittance Scheme (LRS) or other FEMA-compliant channels, (2) Pricing for cross-border services must be at arm's length, (3) Documentation of foreign inward remittances for GST and income tax purposes, (4) Reporting requirements under FEMA for certain categories of transactions. We provide FEMA compliance advisory as part of our Premium NRTP service.

Yes, a foreign individual (not just a company) can register as an NRTP if they make taxable supplies in India without a fixed place of business. Examples include: foreign freelancers providing services to Indian clients, foreign artists performing in India, foreign consultants on temporary assignments, and foreign instructors conducting workshops in India. The individual must appoint an authorised agent in India and provide their passport (attested), proof of overseas address, and details of the supplies to be made in India.

Under Section 24(viii) and Section 122 of the CGST Act, 2017, operating without NRTP registration attracts: (1) Penalty of INR 10,000 or the amount of tax evaded, whichever is higher, (2) Liability to pay the GST that should have been collected, (3) Interest on delayed tax payment (18% per annum under Section 50), (4) Potential proceedings under Section 74 for tax evasion if the amount is significant. Additionally, you cannot legally collect GST from Indian customers, which means your invoices are not valid for ITC purposes for your clients.

The authorised agent is typically compensated through a separate agreement with the NRTP. The agent's role includes: (1) Filing the NRTP registration application, (2) Filing GSTR-1 and GSTR-3B returns on behalf of the NRTP, (3) Paying the advance deposit and subsequent tax liabilities from the NRTP's funds, (4) Responding to GST notices and officer queries, (5) Coordinating with the NRTP for documentation and approvals. Compensation can be a fixed fee, a percentage of the GST liability, or a retainer arrangement. We offer authorised agent services as part of our Premium NRTP package.

Yes, NRTP registration can be cancelled in several ways: (1) Automatic lapse after 90+90 days without extension - the GSTIN is deactivated automatically, (2) Voluntary surrender - the NRTP can file an application for cancellation before the expiry if the activity has concluded, (3) Cancellation by the GST officer - under Section 29, the officer can cancel registration if the NRTP has violated GST provisions, furnished incorrect information, or failed to comply with return filing requirements. After cancellation, any remaining advance deposit is refunded after adjusting for tax liabilities.

Yes, foreign e-commerce operators (like Amazon, eBay, ) who supply goods or services through their platform to Indian customers need to register as NRTPs. Additionally, under Section 9(5) of the CGST Act, e-commerce operators are required to collect tax at source (TCS) on supplies made through their platform. Foreign e-commerce operators must: (1) Register as NRTP under Section 24(viii), (2) Comply with TCS provisions under Section 52 if they operate a marketplace model, (3) File GSTR-1, GSTR-2B (for TCS credit), and GSTR-3B returns, (4) Appoint an authorised agent in India. Our team has experience with e-commerce operator registrations and TCS compliance.

There is no explicit government fee for NRTP registration. However, like CTP, the NRTP must deposit an advance amount equal to the estimated GST liability for the registration period. This is not a fee but a refundable deposit against the tax liability. The amount varies based on your estimated taxable supplies and applicable GST rates. For example, if you estimate INR 1 crore in taxable digital services at 18% GST, the advance deposit would be approximately INR 18 lakh. This deposit is adjusted against your actual GSTR-3B liability and any excess is refunded.

If the foreign entity already has a regular GST registration in India (through an Indian subsidiary, branch office, or liaison office with a fixed place of business), they do not need NRTP registration. The existing regular GST registration covers all taxable supplies in India. NRTP registration is specifically for foreign entities without any fixed place of business in India. If the foreign entity establishes a regular place of business in India after obtaining NRTP registration, they should apply for regular GST registration and surrender the NRTP registration.