Understanding GST registrations: For non-residents and importers


Any person doing business or providing services with a taxable turnover of over Rs.20 lakhs is required to mandatory register for GST in India. Besides this, concept of Casual Registration, Voluntary registrations also been introduced. Further registrations by Non Residents, Registration by agent supplying goods, Input Service Distributor, E-Commerce operators & those selling through E-commerce operators and those providing online information and database access or retrieval services from a place outside India to a person in India have also been made mandatory.

Whether you are doing business as Proprietorship, Partnership, LLPs, Hindu Undivided Family, Company, Society, Trust and any other legal entity, the GST will be applicable and GST registration must be obtained within 30 days from the date of applicability.

Following Few have been exempted and shall not be required to obtain registration and will be allotted a UIN (Unique Identification Number) instead. Those notified can receive refund of taxes on notified supplies of goods/services received by them:

* Any specialized agency of UNO (United Nations Organization) or any multilateral financial institution and organization notified under the United Nations Act, 1947

* Any other person notified by the Board/Commissioner

* The central government or state government may be based on the recommendation of the GST council, notify exemption from registration to specific persons.

It is important to under stand concept of Casual Registration, Registration by Non Residents, Registration by Importers.

Casual Registration
Casual registration has to be obtained by Casual Taxable Person (CTP) irrespective of turnover prescribed as threshold limit. CTPs are defined as those who occasionally undertakes transactions involving supply of goods or services or both in the course of business, whether as principal, agent or in any capacity, in a state or a union territory where he has no fixed place of business.

Registration by Non Residents
Under GST, a Non-Resident Taxable Person(NRTP) is one who occasionally does business 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. All NRTPs also need to apply for GST registration without any benefit of threshold limit.

High Sea Sales (HSS)
Anyone supplying from territorial waters of India shall also obtain registration under GST. High Sea Sale (HSS) is a sale to another person while the goods are still being transported, or after their dispatch from the port/airport of origin and before their arrival at the port/airport of destination. These sales will attract IGST.

GST registration by Importers
Importers of Goods and services should be aware of following GST provisions:
* Import as Inter-State Supply – Import into India will be considered as Inter-State supply under GST Law and hence will attract Integrated Goods and Services Tax (IGST) along with Basic Custom Duty. IGST will be charged on transaction value whereas under existing regulations CVD is charged on MRP based value.

* Import of Services – Service receiver will meet the liability of payment of tax on import of services and hence requirement of registration under GST. This in a way is similar to the existing regulations of reverse charge.

Source: http://economictimes.indiatimes.com/news/economy/policy/understanding-gst-registrations-for-non-residents-and-importers/articleshow/59319064.cms


One Reply to “Understanding GST registrations: For non-residents and importers”

  1. Ankit Goenka says:

    Dear Sir,

    I would like to bring to your kind notice that putting raw cashewnut in shell under reverse charge will bring havoc to importers of the industry. I have no problem with rate of tax (5%)

    My concern is that it will lead to multiple taxation on hands of importers & traders until it is finally processed to cashewnut kernels. Please note the following chain of an importer of raw cashewnut in shell:

    Importer imports & pays Basic Custom Duty(BCD) & IGST → No Gst charged on sale by importer (seller) from buyer under reverse charge i.e, no input credit →Purchaser 1 (Trader) pays tax under reverse charge on purchase of goods →Purchaser 1 (seller) sells to Purchaser 2 (buyer) without charging Gst under reverse charge i.e, no input credit.
    And chain of double taxation goes on until it is purchased by manufacturer and processed into cashewnut kernel.

    This will defeat the whole purpose of GST.
    So, you are requested to bring out raw cashewnut in shell from ambit of reverse charge or bring clarification notification to clear the ambiguity.

    Thanks & Regards
    Ankit Goenka
    Kolkata, India
    Mobile: 98742 00061

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