GST Registration for NRIs and Foreign Businesses: The Non-Resident Taxable Person Rules in Ponmar

Foreign businesses and non-resident individuals looking to supply goods or services in India face a distinct GST registration category: the Non-Resident Taxable Person (NRTP).

Who qualifies as an NRTP?

An NRTP is any person who occasionally undertakes transactions involving the supply of goods or services in India but has no fixed place of business or residence in the country. This typically applies to foreign exhibitors at trade fairs, overseas suppliers making occasional India-based sales, or foreign entities executing short-term projects.

Key differences from regular GST registration

• No turnover threshold applies — NRTPs must register regardless of the value of supplies.
• Registration is granted for a specific validity period (up to 90 days, extendable).
• An advance deposit of estimated tax liability is required at the time of registration, unlike regular registration.
• A registered NRTP cannot opt for the Composition Scheme.

Application process

NRTPs apply using Form GST REG-09, at least five days before commencing business in India. Since NRTPs often don't have a PAN, they can use their business identification/tax number from their home country along with certain notarized documents, and must appoint an authorized signatory who is a resident of India with a valid PAN.

NRIs setting up a regular business in India

This is different from the NRTP category — if an NRI incorporates a company or LLP in India and operates on an ongoing basis (not occasionally), they register like any other Indian business under standard GST rules, subject to the usual turnover thresholds.

Compliance obligations

NRTPs must file Form GSTR-5 for the registration period, reporting all outward and inward supplies, and pay any tax due before the registration expires or is extended.

Common scenarios

Foreign companies exhibiting at trade shows, event organizers bringing overseas vendors, and short-term consulting or project-based engagements by foreign firms are the most frequent real-world use cases for NRTP registration.

Because of the advance deposit requirement and tight documentation rules, NRTPs are strongly advised to engage a local GST practitioner rather than attempting self-registration.