GST for Non-resident Taxable Person
Introduction: In GST there is specific provision for taxability of non-resident taxable person; It is important to know what will be compliances that an assessee, will be required to carry-out. What is return and due date of return that is to be furnished by the assessee; Whether registration is compulsory; What are the special points that are required to be noted. In this article we will cover all the provision relating to non-resident taxable person under GST.
Non-resident taxable person means as any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
It is important to note that person does not had it is not relevant that in which capacity person is supply, whether transaction is continuous or on occasional basis but person shall not have residence or fixed place of business in India.
Registration requirement: Section 24 of CGST Act, 2017; specifies requirement for registration for a non-resident taxable person. According to it every no-resident taxable person is compulsorily required to obtain the registration irrespective of turnover. If we analyse this then it is not mandatory for every person to obtain the registration but if the person is applying any goods or service and does not have place of residence in India or does not have place of business in India then he is required to register even if value of supply undertaken by him is in single digit.
Further, every non-resident taxable person or business who falls under the definition covered above needs to apply for registration at least five days prior to the commencement of business.
Validity of registration:The certificate of registration issued shall be valid for the period specified in the application or 90 days from the effective date of registration, whichever is earlier.The validity period of 90 days can be extended by a further period not exceeding 90 days. The extension will be allowed on making an application in Form GST REG-11 and after payment of the additional estimated tax liability for the period for which the extension is sought.
Advance Payment of Tax by Non-resident Taxable person:A non-resident taxable person is required to make an advance deposit of tax in an amount equivalent to the estimated tax liability (to be calculated by non-resident taxable person on presumptive basis) of such person for the period for which registration is sought. The tax paid by such non-resident taxable person will be credited to his electronic cash ledger and will be adjusted against his actual tax liability. For such payment of tax after applying for registration non-resident taxable person will get temporary reference number which will be electronically generated by the GST portal.
Return to be furnished by non-resident taxable person: Every non-resident taxable person is required to furnish GSTR-5; which will consist details of outward and inward supplies and payment of tax. The time limit within which such return is required to furnished is within 20 days after the end of a calendar month or within 7 days after the last day of the validity period of registration, whichever is earlier. Such persons will not be required to furnish annual return.