In India, the Goods and Services Tax (GST) is a broad, destination-based indirect tax system meant to unify numerous central and state levies.
Subject to particular thresholds and requirements, every person or business supplying goods or services must register under law in the GST system. GST law lists various classes of taxable persons having their own registration procedures that are specific to the character of their trade and activities. Such classes include Regular Taxable Persons, Composition Dealers, Casual Taxable Persons, Non-Resident Taxable Persons (NRTPs), Input Service Distributors (ISDs), E-Commerce Operators, and TDS/TCS Deductors, etc.
Registration of GST forms the basis for paying and collecting tax, availing input tax credits, and meeting the obligation of filing returns. This helps ensure that business transactions take place in a transparent, accountable, and legally sound way. Understanding the particular requirements of each category is necessary to attain lawful and effective GST compliance in India.
Who is a Non-Resident Taxable Person Under GST?
According to the Goods and Services Tax (GST) Act, 2017, a Non-Resident Taxable Person (NRTP) is a person or business entity who, from time to time, undertakes taxable supplies of goods or services or both in India, but does not have a fixed place of business or residence in India.
Section 2(77) of the CGST Act defines an NRTP as a person having no permanent place of business or residence in India, traveling to India temporarily for making taxable supplies, can participate in fairs, exhibitions, short-term consultancy, and project-based transactions, and must register for GST before making any taxable supply, irrespective of their turnover.
In contrast to normal taxpayers, NRTPs have to register themselves under GST at least 5 days prior to the initiation of their business. Registration requires pre-payment of the likely tax liability. They are allowed to register for a duration of 90 days and can further extend this by another 90 days by making use of Form GST REG-11. They are required to submit monthly returns in the form of Form GSTR-5 during the period of registration.
The NRTP classification ensures that foreign or non-resident organisations carrying out short-term business activities in India are taxed. The setup facilitates the effective supervision of cross-border and short-term dealings while providing fair tax compliance without burdening such organisations with long-term responsibilities.
In conclusion, an NRTP is a taxable though temporary player in India’s economy that is regulated under GST rules designed for cross-border and non-permanent economic activities.
GST Registration For NRTPs – Applicability And Scope
According to the Goods and Services Tax (GST) Act, Non-Resident Taxable Person (NRTP) means any person who occasionally makes transactions involving the supply of goods and/or services (or both) in India but does not hold a permanent establishment or residence in India. NRTPs must register under GST before they start making any taxable supply in India, regardless of the domestic taxpayers’ turnover limits.
Applicability:
The need for registration under GST is applicable in the following situations:
- Foreign business entity or person supplying goods/services at events in India, like trade fairs, exhibitions, and temporary contracts.
- Businesses that import and sell products in India for a short period of time.
- Providers of cross-border digital or consulting services to Indian clients.
The registration is to be done at least 5 days before the start of business activities and remains valid for a period not exceeding 90 days, extendable for another 90 days on request.
Scope:
- NRTPs need to pay their estimated tax liability upfront while registering.
- NRTPs need to file the GSTR-5, a simplified return on a monthly basis.
- The Input Tax Credit (ITC) applies only for inward supplies used in taxable outward supplies.
- NRTPs are not eligible for the Composition Scheme, which offers easier tax payment options.
In short, GST registration for NRTPs promotes tax compliance, enables legal provision of goods/services in India, and conforms to India’s tax transparency and accountability framework, particularly for cross-border or international businesses.
Application Process for GST Registration of Non-Resident Taxable Person
Registration will continue for the period mentioned in the application or up to 90 days, whichever is less. It can be extended once for a further 90 days by filing Form GST REG-11. A Non-Resident Taxable Person (NRTP) cannot avail of the Composition Scheme. Returns should be filed in Form GSTR-5 (monthly return), which is to be filed on or before the 20th of the subsequent month or within 7 days from the end of the validity period, whichever is earlier.
1. Prepare Required Documents
You must produce the following documents (all in English or English translations):
- Individuals need to have a passport, whereas companies require an incorporation document.
- PAN of the authorised signatory (if Indian) or their passport.
- Address proof in India (such as hotel booking, lease, business mail)
- Bank account details in India can be updated after registration.
- A letter of authority or board resolution for signatories
- A Digital Signature Certificate (DSC) for companies or Limited Liability Partnerships (LLPs).
2. Go to the GST Portal
Go to https://www.gst.gov.in. Click on “Services” > “Registration” > “New Registration.”
3. Select the Right Category
Choose “Non-Resident Taxable Person” from the dropdown list. Enter the mandatory details:
- Legal name (as shown on passport or certificate)
- Country of origin
- Enter your email address and Indian mobile number for OTP authentication.
- Enter PAN (if relevant) and passport number.
- Propose a maximum running period of 90 days, extendable.
- Estimated turnover and tax liability.
4. File Documents
Submit the documents mentioned above in the aforementioned format and size.
5. Advance Tax Payment
NRTPs are supposed to pay GST in advance on the estimated turnover in the registration period. A Challan (Form GST PMT-06) will be raised, and this payment should be made before submitting the application. For example, if your expected tax liability is ₹50,000, you should pay this amount in advance to complete the registration.
6. Sign and Submit Application
Utilise DSC (for companies/LLPs) or EVC (for individuals) to authenticate and submit the application. On submission, an Application Reference Number (ARN) is created.
7. Certificate of Registration (Form GST REG-06)
The application is scrutinised by the GST officer. In case all is well, registration is effective within 3–5 working days. The GSTIN (Goods and Services Tax Identification Number) is released along with the Form GST REG-06.
Consequences of Non-Compliance
A Non-Resident Taxable Person (NRTP) is legally required to register for GST before making any taxable supply in India. Failure to register, meet payment due, or file returns can have severe legal and financial repercussions.
Because NRTPs often have only a brief presence in India and no permanent establishment, compliance with GST is rigidly enforced. Noncompliance will have serious penalties, legal consequences, and long-lasting effects on corporate reputation.
1. Penalty for Non-Registration
If an NRTP fails to register for GST when they are liable, the penalty imposed under Section 122 is ₹10,000 or the amount of tax evaded, whichever is more. This holds true even when the NRTP made deliveries without registration for a temporary time frame.
2. Tax Liability Without ITC Benefits
The NRTP is nonetheless liable for paying the full tax on supplies for the duration of unregistration. Input Tax Credit (ITC) will not be accessed for purchases made for the duration of this period, thus furthering the financial burden.
3. Denial of Registration
Tax authorities may deny or delay granting GST registration in instances of determined non-compliance. Backdated registration requests with retrospective tax and interest may be required.
4. Interest for Delayed Tax Payment
As per Section 50, there is a charge of interest of 18% per annum on delayed payment of tax. The interest is calculated from the due date of the tax until the date of actual payment.
5. Prosecution and Criminal Proceedings
In extreme cases of willful evasion of tax, the NRTP can face:
- Prosecution under Section 132
- Imprisonment for a period not exceeding 5 years, subject to the amount of tax evaded
- Significant fines and possible blacklisting of the NRTP for future registration
6. Invalidation of Business Transactions
Clients or customers in India could reject invoices from an unregistered NRTP. The invoices are illegal for ITC for the receiving parties, which can damage business relationships.
7. Blocking of Operations in India
The NRTP could be stopped from further operations in India until adequate compliance is provided. Indian authorities can confiscate goods, terminate contracts, or refuse authorisations for exhibitions, trade fairs, or temporary projects.
Conclusion
Non-Resident Taxable Person (NRTP) GST registration is a compulsory compliance for any foreign person or enterprise with the intention of making taxable supplies in India without a permanent establishment. Registration of NRTP includes bringing in cross-border and temporary transactions into the Indian tax pool, increasing equity and accountability.
Given the transient and occasional character of NRTP business, GST law requires preregistration, advance payment of tax, and prompt filing of returns. Failure to adhere can result in heavy fines, loss of business rights in India, and reputation loss. For efficient conduct of business, NRTPs must deal with their activities in a proper manner, accurately assess their liability, and file their returns in a timely manner.
Overall, NRTP GST registration is the doorway to lawfully and meaningfully participate in India’s vast and vibrant economy, in accordance with all applicable tax requirements.
