IS GST ONLY REQUIRED IN INDIA?

Whether Foreign Company Can Obtain GST Registration?

GST Registration in case of Foreigners

GST named as Goods and Service Tax is the purely indirect tax that is leviable on every kind of good and services supplied via any method that may online or offline. On 1^st July, 2017, GST enforced in India and any person who want to do business in India need to get the GST registration and also required to file the GST returns that may be monthly or quarterly as the case may be applicable. For the Non- Resident GST registration must be applied 5 days before the start of business in India. Non-resident taxpayer is defined by the person who does transactions on occasional basis in India by way of supplying of goods and services or both. Every kind of non-resident need to appoint the authorized person and authority which is resident in india for compliance of the GST rules and regulations in India.

Every kind of Non-Indian and Non-Resident person is required to get the GST registration as he is Non-resident foreign tax payer. In general person who does not live in India is called by the name non-resident. Transaction number would be generated when GST application is filed by non-resident taxpayer and by taking that number into consideration, GST deposit can be done.

In case of foreign companies in India

Process for the foreign companies, GST registration is very easy. Electronically application in the form of GST REG-9 which need to be duly filed in all aspects and submit over the GST portal and in the application valid passport need to be attached and as per the rules and regulations, application is required to filed at least 5 days before doing any kind of transaction in India that may be online or offline and that particular tax payer required to pay the tax well in advance and in that case tax will be tax liability will calculated on the estimation  for the said period for which registration is being applied. In case of GST registration for non-resident or non-Indian it is valid for ninety days altogether which can extended for the further period of 90 days filling form GST REG-11. Documents required for the foreign companies in India are like valid passport with the VISA details, proof of business address and Bank account details. Transaction number would be generated when GST application is filed by non-resident taxpayer and by taking that number into consideration, GST deposit can be done.

Advantages of GST

• Transparent tax –There is no hidden aspect regarding the GST taxation altogether.
• No hidden taxes – All transaction are clear in all aspects whether party and taxation.
• Help companies as consumption will increase- As credit availability is there so boosting the companies to tax on fair terms.
• Integrated tax- All indirect taxation sums up in one taxation so that there is no need to move for other tax on the base of goods and services.
• Final destination based tax- As link with the chain make the taxation easy and lesser the burden too over the whole chain.
• Corruption-free tax administration- As every transaction and person is fair visible enough to pay and link for the taxation of GST.

In case of Foreign National, Documents required to be submit are

• Passport must be Notarized or Apostilled of  Foreign Nationals and NRIs,
• Voter’s ID/ Driving License /Passport Scan copy
• Passport-sized photograph
• Signature in specimen form in  the blank document

Input Tax Credit

Input tax credit is not available in case of non-resident taxable person in respect of goods or services or both and the tax paid by the non- resident tax payer is available as credit to the respect receipts which is altogether a benefit aspect for the Indians.

Returns

Directly or through a Facilitation Centre notified by the commissioner, Return is required to submit in the FORM GSTR-5 electronically via common portal of the GST. In returns details like inward supplies or outward supplied need to mention and after that requirement to pay the tax, interest, penalty and any other amount as may be specified by the rules and regulations within the twenty days after the close of calendar month or within the period of seven days after the last day of validity whichever is earlier.

Refund

Refund amount can be available of the advance tax deposited at the initial level or extension of registration which can be refunded only after the person has furnished all the returns in respect to the period for which the certificate of registration has been taken and refund need to be taken in the FORM GST-5 over the GST portal electronically.

Conclusion

Any person who want to do business in India need to get the GST registration and also required to file the GST returns that may be monthly or quarterly as the case may be applicable. For the Non- resident GST registration must be applied 5 days before the start of business in India. Documents required for the foreign companies in India are like valid passport with the VISA details, proof of business address and Bank account details. Input tax credit is not available in case of non-resident taxable person in respect of goods or services or both and the tax paid by the non- resident tax payer is available as credit to the respect receipts which is altogether a benefit aspect for the Indians. There is no hidden aspect regarding the GST taxation altogether.

For further queries please contact us on: Email Id Swati@neusourcestartup.com and Phone Number 9540026175.

The NeuSource Startup Mind is the finest business startup consultant that offers various services of registration like Proprietorship Firm Registration, Partnership Firm Registration, LLP Registration, Company registration, GST Registration, Copyright Registration, ISO Registration Trademark registration and other FSSAI License etc.

CS Jagriti Mehndiratta

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