Non-Resident taxable person means a person who is a foreigner and occasionally wants to make taxable supplies from any state in India.
Such person does not have fixed place of business or residence in India.
Non-Resident taxable person needs to register for GST before making taxable supply. Hence, foreign nationals who run temporary businesses in exhibitions or fairs or seasonal businesses in India would fall under this category.
Example: Mr David from Australia runs a business of Machines in Australia. Now he wants to participate in exhibition in Jaipur, India for 3 days. Since he does not have fixed place of business in India, he must register as Non-Resident Taxable Person to sell in India.
Since Non-Resident Taxable person’s business will be for very short period of time, they will find it difficult to maintain a fixed place of business and file monthly GST returns. To accommodate the special requirements of such persons, provisions have been provided under the GST Act for registration of Non-Resident Taxable Person.
Non-resident taxable person must compulsorily apply for GST registration irrespective of turnover limit. The threshold limit of Rs 20 lakhs / 40 Lakhs does not apply to Non-Resident taxable person (CTP). Further, A Non-Resident taxable person cannot exercise the option to pay tax under composition levy. A Non-Resident taxable person must make an advance deposit of tax in an amount equivalent to his estimated tax liability for the period for which the registration is sought. Let’s take our previous example, Say Mr. David estimates his sales at Rs. 5,00,000 (without GST). He is required to make an advance deposit of Rs. 90,000 (18% of Rs. 500000) to obtain temporary registration.
Non-Resident taxable person must apply for GST registration at least five days prior to commencement of business.
Every person must have PAN to be eligible for GST registration. But since non-resident person will not have PAN, he shall be granted GST registration on the basis of some other prescribed documents. A non-resident taxable person is not required to apply in normal application for registration being filed by other taxpayers. A simplified form GST REG-09 is required to be filled. A non-resident taxable person has to electronically submit an application, along with a self-attested copy of his valid passport, for registration, duly signed or verified through EVC.
This registration has validity of maximum 90 days which can be further extended by 90 days by proper officer on request of taxpayer. Taxpayer has to deposit his estimated liability of extended period before making a request. Input tax credit shall not be available in respect of goods or services or both received by a non-resident taxable person except on goods imported by him. The taxes paid by a non-resident taxable person shall be available as credit to the respective recipients.
The non-resident taxable person shall furnish a return in FORM GSTR-5 electronically through the Common Portal, including therein the details of outward supplies and inward supplies and shall pay the tax, interest, penalty, fees, or any other amount payable within twenty days after the end of a calendar month or within seven days after the last day of the validity period of registration, whichever is earlier.
The Non-Resident taxable person is eligible for the refund of any unutilised balance of the advance tax paid by him after paying off his tax liability. The balance advance tax deposit can be refunded only after all GST returns have been furnished, in respect of the entire period for which the certificate of registration was issued. Refund can be claimed in serial no 13 of GSTR-5.
A non-resident taxable person cannot exercise the option to pay tax under composition levy.
PAN is not compulsory for obtaining registration as a NRTP. Copy of Passport of foreign national is sufficient proof and PAN card of authorized signatory is required.
The registration certificate of NRTP shall be valid for the period specified in the application for registration or 90 days from the effective date of registration, whichever is earlier
A NRTP can make taxable supplies only after he has been granted a GST registration in India and he shall be eligible to make such supply for the period registration has been granted.
A non-resident taxable person shall be required to apply for registration at least 5 days before commencement of business
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