Non-resident taxable personin GST

Non-resident taxable personin GST : As per sub-section 77 of section 2 of CGST Act,2017A non-resident taxable person means any person who occasionally undertakes transactions involving supply ofgoods or services or both, whether as principal or agent orin any other capacity, but who has no fixed place of businessor residence in India.

• A non-resident taxable person has tocompulsorily take registration if wants to make taxable supply in INDIA.
• Option to pay tax undercomposition levy is not available to non-resident taxableperson.
• As per Section 24 of CGST Act,2017Threshold limit for registration is also not made available to non-resident taxableperson.
• A non-resident taxable person has to DEPOSIT in ADVANCE the estimated amount of tax liability for the period of registration.
• The non-resident taxable person can make taxable suppliesonly after the issuance of the certificate of registration.
• The certificate of registration to a non-resident taxable person can be granted for maximum period of ninety days at a time(it can be further renewed).

Non-resident taxable personin GST

Registration for a non-resident taxableperson/incorporated entity

• A simplified GST Registration form (FormGST REG-09)is to be filedelectronically onthe Common Portal orthrough a FacilitationCentre notified by the Commissioner.
  • When the applicant is a person - A self attested copy ofvalid passport is must.
  • When the applicant is a incorporated entity -A self attested copy of PAN or TIN or unique number on the basis of which the entity is identified by the Government of thatcountry.
• Application is required to besigned or verified through EVC.
• This application is to made at least five days prior to the commencement of business in INDIA.
• It is not mandatory to have Permanent Account Number of India.
• The application form must be signed by the authorized signatory (who is resident of India & has a valid PAN) of non resident taxable person.
• When all the above supporting documents, application form along with verification ofPAN, mobile numberand e-mail address, applicant will be given a TemporaryReference Number by the Common Portal.
• By using thistemporaryreference number, applicant has to mandatorily make the ADVANCEDEPOSIT of tax.
• ADVANCEDEPOSIT of tax shall be equivalent tothe estimated tax liability of such person for the period for which the registration is sought.
• The amount which applicant deposits towards advance tax will reflect inelectronic cash ledger ofthe Non-resident person.
• Only after the advance deposit of tax reflects in electronic cash ledgerofthe non-resident taxable person, the registration certificate will be issued electronically.
• The Registration Certificate shall be valid for the period
  • specified in the application for registrationor
  • ninety days from the effective date of registration, WHICHEVER IS EARLIER.

Extension of registration

• If the applicant wishes to extend the period of registration then, an application can be made inFORM GST REG-11 before the validity ends for the ongoing registration.
• The form needs to be submitted electronically either through the Common Portal directly orthrough a Facilitation Centre notifiedby the Commissioner.
• The validity period of ninetydays can be extended by a further period not exceedingninety days.

Return by a Non resident taxable person

• A Non-resident taxable person needs to furnish the details of outward & inward supplies in FORM GSTR-5.
• Form GSTR - 5 needs to be filedelectronically through theCommon Portal, either directly or through a FacilitationCentre notified by the Commissioner.
• Before filing Form GSTR - 5 the amount towards tax, interest, penalty, fees or any other amountpayable should be paid.
• Generally the due date as per the provisions of CGST Act & CGST Rules is
  • within twenty daysafter the end of a calendar month OR
  • within seven days afterthe last day of the validity period of registration, WHICHEVER IS EARLIER.
  • Latest Due Date for FORM GSTR-5 for the period of July to December 2017 has been notified by CBEC as 31st January,2018

Refund of taxes paid

• If there is any excess amount of tax left over in electronic cash ledger it will berefunded only after theperson furnishes all the returns required for the period of registration granted.
• Refund will be granted from the balance of amount of tax deposited in advance at the time of initial registration or during the extension.
• For refund one needs to apply inserial no. 13 of the FORM GSTR -5.

Compiled by CA ANKITA KHETAN. For any further queries either comment in the section below or write to us on [email protected]