If you are an NRI looking to do business in India, GST is one compliance you cannot afford to misunderstand. Many NRIs assume that because they live abroad or execute a short-term project in India, GST may not apply to them in the same way it applies to resident businesses. That assumption is wrong, GST registration for NRIs with businesses in India is important.
The GST law treats you differently and more strictly than a resident taxpayer. Once you understand how the system looks at you, the registration and compliance process becomes far more predictable.
How GST applies to you as an NRI
From a GST perspective, the law does not focus on where you live. It focuses on where the supply happens. If you are supplying goods or services in India, even temporarily, you fall under the category of a Non-Resident Taxable Person (NRTP).
This could apply to you if you are:
- Providing consultancy or professional services to Indian clients
- Running an online business that serves customers in India
- Executing a short-term project or contract
You need to submit the GST REG-09 form to obtain provisional registration five days before commencing business.
Do you get any turnover exemption?
No, this is one of the most important points to understand.
As an NRI, you do not get the benefit of the ₹20 lakh or ₹40 lakh exemption limit available to resident businesses. The moment you plan to make a taxable supply in India, GST registration becomes mandatory.
You are also not allowed to opt for voluntary registration or composition schemes. The law expects you to be registered before you start business activities.
How to register for GST
A Non-Resident Indian (NRI) who qualifies as a non-resident taxable person is required to apply for GST registration electronically by following the procedure outlined below:
Filing the application for registration
The non-resident taxable person must file an electronic application for GST registration using FORM GST REG-09. A self-attested copy of a valid passport must accompany this application.
The application must be duly signed or verified through EVC (Electronic Verification Code).
Additional requirements for foreign business entities
If the applicant is a foreign business entity incorporated or established outside India, the registration application must include the tax identification number of the country of incorporation (equivalent to PAN) or the PAN, if available.
Advance deposit of tax
Along with the application, the non-resident taxable person must make an advance deposit of tax, calculated on an estimated basis.
Final registration process
The final registration process for a non-resident taxable person is carried out in the same manner as for resident taxpayers:
- The applicant must submit an electronic application using FORM GST REG-26, furnishing the required information within three months.
- If the information provided is correct and complete, the final GST registration will be granted in FORM GST REG-06.
- If the information is found to be incorrect, the GST officer will issue a show-cause notice in FORM GST REG-27. After providing a reasonable opportunity of being heard, the provisional registration may be cancelled through FORM GST REG-28.
- If the applicant’s reply to the show-cause notice is satisfactory, the notice may be nullified by issuing an order in FORM GST REG-20.
Authorised Signatory Requirement
The GST registration application made by a non-resident taxable person must be signed by an authorised signatory who is a resident of India and holds a valid PAN.
Documents you will need
The registration process is online, but the documentation must be precise. You will typically need:
- Your passport (this is compulsory)
- A recent photograph
- Proof of your overseas address
- Address details of the place where you will operate in India
- Bank account details
- Details of an authorised signatory, if someone is managing compliance for you in India
If you do not have a PAN, you can still register using your passport details.
GST returns you are required to file
As an NRI, you are required to file GSTR-5 on a monthly basis.
This return captures your sales, purchases, tax liability, and tax paid. Even if there are no transactions in a particular month, a nil return must still be filed.
There is no annual return requirement for NRIs, but monthly compliance is strictly monitored. Delays attract late fees and interest, which accumulate faster than most people expect.
Practical challenges you can expect
Managing GST compliance from outside India is not always smooth. Common issues include:
- Tracking deadlines across time zones
- Coordinating with Indian consultants
- Ensuring invoices and data are shared on time
- Avoiding errors in monthly filings
Having a centralised system to record transactions, compute GST, and prepare returns reduces the need for back-and-forth communication. This is where tools like GST software become useful, as they allow accurate tracking and reporting with minimal manual intervention.
Conclusion
If you are an NRI running a business in India, GST compliance is crucial. Registering early, estimating your tax liability correctly, and filing returns on time will help you stay compliant and avoid unnecessary risks.
With the right planning and reliable systems like TallyPrime in place, GST compliance becomes manageable rather than stressful. That clarity allows you to focus on what actually matters, building and growing your business in India.
