India’s Goods and Services Tax (GST) has unified the indirect tax framework across the country. While Indian businesses are required to register once they cross the prescribed turnover threshold, the rules are more stringent for foreign companies. Any overseas entity supplying goods or services in India must obtain GST registration as a Non-Resident Taxable Person (NRTP), even if it does not maintain a fixed place of business within India.
Who Qualifies as a Non-Resident Taxable Person (NRTP)?
As per the GST law, a non-resident taxable person is an individual or business that:
- Supplies goods or services in India occasionally, and
- Does not have a permanent business establishment or residence in the country.
This definition covers foreign companies engaged in activities such as software delivery, online platforms, consulting, or technical services for Indian clients.
When is GST Registration Required for Foreign Companies?
Foreign companies are obligated to register for GST in India under the following circumstances:
- Supplying goods or services to Indian customers (either B2B or B2C).
- Offering online information and database access or retrieval services (OIDAR) to users in India.
- Participating in business exhibitions, trade fairs, or projects that involve sales in India.
- Conducting business through agents or representatives within India.
👉 Unlike resident taxpayers, there is no minimum turnover exemption. Even a single transaction necessitates registration.
Procedure for GST Registration
- Filing the Application
- Submit an application on the GST portal (www.gst.gov.in) using Form GST REG-09.
- Authorized Signatory in India
- The foreign company must appoint a resident Indian as an authorized signatory to handle GST compliance.
- Advance Tax Payment
- At the time of registration, an advance deposit of the estimated tax liability for the registration period must be made. This is credited to the electronic cash ledger.
- Required Documentation
- Incorporation certificate or passport of the company/authorized person
- Tax identification number from the home country
- Proof of business activity in India (agreements, invoices, etc.)
- Bank account details in India, if available
- Validity of Registration
- Registration is granted for the duration mentioned in the application, generally 90 days.
- The validity can be extended if the company continues operations beyond the initial period.
Compliance Obligations After Registration
Once registered, foreign companies are required to:
- Issue invoices that comply with GST rules.
- File returns in Form GSTR-5 at regular intervals.
- Discharge GST liability on taxable supplies made in India.
- Apply for refunds of any unutilized advance tax deposit, where applicable.
Key Highlights
- Registration is mandatory from the very first transaction—no threshold exemption.
- An Indian authorized signatory is compulsory.
- Advance tax payment is a precondition for registration.
- Regular compliance, including filing returns and tax payments, applies equally to foreign entities.
Conclusion
For foreign companies, GST registration is a legal requirement whenever goods or services are supplied in India. By registering as a Non-Resident Taxable Person, overseas businesses ensure compliance with Indian tax regulations, avoid penalties, and strengthen their standing with Indian clients.
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Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.