In the era of accounting, a business or a person from outside must obtain a GST registration for a non-resident taxpayer when supplying goods and services. This helps to cooperate with the rules and regulations of tax, and charge GST on sales which are made in the country. With this, they can easily and legally operate and pay taxes on their business activities without a physical office. In this blog, we’ll discuss the full process of GST Registration for Non-Resident Taxpayers to get GST registration for a foreign company quickly and easily.
What is GST Registration For Non-Resident Taxpayer?
The U.S. has a system for sales tax, which is managed by individual states. A non-resident taxpayer must need to register to sell goods and services in the states where they do business for sales. This registration allows customers to make collections and pay sales tax on taxable sales. In each and every state, they have their own rules and regulations, for which non-resident sellers need to check the requirements of specific states.
Why is GST Registration Mandatory for Non-Residents?
GST registration for non-resident taxpayers is mandatory because it requires collecting tax from any taxable supply and tracking the goods and services, which is a consumption-based tax within its territory. When the foreign entity has no fixed place of business, at that time, the requirement of transaction volume applies. It ensures a transparent operating tax system for all suppliers. It is not eligible for non-resident taxable persons in resident businesses, and they must need to complete a registration for GST.
What are the Documents Required for GST Registration For Non-Resident Taxpayer?
Here are some simple processes with an explanation of the documents that are required for GST registration for Non-Resident Taxpayer, mentioned below:
- Passport Copy: You need a valid and authorized passport for the applicant or the person.
- Proof of Business Address: The Document needs to show the addresses as proof of the place of business where it belongs, like a rent agreement or any papers of property.
- Details of Bank Account: Details like an exact copy of a cancelled cheque, bank transaction statements, or a certificate from the bank.
- Approval Letter: It can be possible, if a representative who was already authorized is applying, then a letter or authorization form should be provided to that person.
- Photo of the Applicant: An authorized signatory or a recent passport-sized photograph of the applicant is required during registration.
- (If available) Tax Identification Number: Any tax registration number or identification number of the applicant can be issued in the home country.
Through the help of these documents, a non-resident taxpayer can verify the identity and details of the business for GST registration.
Step-by-Step Process for GST Registration (NRTP)
Here are some simple processes with Steps for GST Registration, mentioned below:
- Visit the official website of GST registration and press the option for Non-Resident Taxpayer.
- Fill in the basic details by entering your name, email address, mobile number, and details of your business to create a temporary reference number (TRN).
- Use the OPT to verify which was sent to your email, and also verify your contact details through your mobile number.
- Fill out the GST registration form to continue by using the TRN to log in.
- Enter the details to provide your business information, like business name, address, types of business, and the duration of operation.
- Provide documents like a copy of the passport, address proof, bank details, and an authorization letter needed to upload the required documents.
- If applicable for an authorized signatory, provide the details for which the person of authorization will act on your behalf.
- Review carefully with the required documents all the details to submit the application.
- You’ll receive your GSTIN and Certificate once it gets approved.
Validity and Renewal of Registration
Here are some simple details discussed briefly about the validity and renewal of GST Registration for Non-Resident Taxpayers, mentioned below:
- Validity Duration/Period: A valid period is only available for 90 Days which as mentioned in the application for the GST Registration for Non-Resident Taxpayer.
- Extension of Validity: If the business wants to continue and extend beyond the original validity period, then before the expiration date, an extension request must be submitted.
- Renewal Process: The taxpayer has to apply online through the GST portal to renew the process, which was already mentioned that for a new validity period need to pay the required tax in advance.
- Approval and New Validity: Once approved, the registration will be extended for the requested period or may be allowed by the authorities.
- If Not Renewed: The registration will expire if it is not renewed on time through which means the taxpayer can’t continue making taxable supplies.
In short, to continue the business operation legally, you need to keep the registration active before it expires, because this registration is temporary.
How to Cancel GST Registration (NRTP)
After completing the period of business, a Non-Resident Taxpayer (NRTP) can easily cancel the GST registration if it is no longer needed. Here are some step-by-step processes mentioned about” how to cancel GST Registration for Non-Resident Taxpayer”, as follows:
- Go to the Official GST portal.
- Use your credentials to log in.
- Go to the sections where you can cancel.
- Complete the cancellation form.
- Submit the reasons with details for cancellation.
- After approval, receive the confirmation and complete the cancellation process.
How a Professional Can Help
The GST process can be made easier by a professional for Non-Resident Taxpayers, who help in preparing documents, fill out forms correctly, and make them sure that the details are accurate. They guide you to avoid mistakes and penalties, step through registration, renewal, rules, and regulations. They also keep tracking the deadline, file returns on time to help you operate your business smoothly.
Conclusion
At the end of the conclusion, GST Registration for Non-Resident Taxpayer can conduct their business smoothly and legally, which is very essential. By taking help from professionals, it ensures that they can make a proper tax collection and comply with GST rules. By following the registration, renewal, and filing procedures carefully, to can manage their business operations smoothly and effectively without creating any legal issues.