GST was implemented in India on 1st July 2017. If a person or company is situated outside India, but performing any business transaction in India, is compulsorily required to obtain GST registration in India, as per the section 24 of the Central GST Act of 2017. It is mandatory for non- resident taxable persons to appoint an authorized person in India for the purpose of complying with GST regulations. So the application of GST registration, for foreign non- resident taxable persons must be drafted and filed by an authorized agent in India.
It will be applicable on the supply of goods or services which replaces the existing system of manufacture of goods or sales of goods or provision of services.
GST structure is made on the principle of destination-based consumption as compared to origin-based taxation.
Dual-based GST with central and state levels.
Import of goods and services will be included in IGST, in addition to applicable customs duties.
A non-resident taxable person must register for GST in India regardless of their annual turnover. It's worth noting that all non-resident taxpayers must register for GST five days before starting their firm. It is preferable if a foreign company selling goods and services, register for GST as soon as possible. It should be emphasised that the NRI cannot use the composition scheme's option to pay taxes.
GST combines all products and services under one roof, unlike VAT and Service tax hence making compliance is easy for foreigners also.
Input Tax Credit (ITC) can be claimed for taxes paid on purchases and can be utilized for payment of due taxes.
GST is attracted only if the annual turnover of the business is more than Rs 20 lacs or Rs. 10 lacs in certain parts of the country.
It should be applied through GST common portal i.e. www.gst.gov.in. the steps are as follows:
|Acceptable Document||Document Type||Additional Details|
|Notarized or Apostilled copy of passport for foreign nation and NRI||demo||demo|
|Specimen signature (Blank document with signature )||demo||demo|
|Scanned copy of Voter’s ID/Passport/Driver’s License||demo||demo|
|Scanned passport sized photograph||demo||demo|
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