GST on Non-Resident Tax Payer
To understand the applicability of GST for non-resident tax payer ,one should know who is a non-resident as per GST law. A non-resident taxable person means any person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
Registration of non-resident tax payer under GST
A non-resident taxable person planning to do business in India should mandatorily obtain GST registration at least 5 days prior to the commencement of business in India irrespective of his turnover.
A Non-resident taxable person will not be eligible to obtain registration under Composition levy under GST.
Upon application for registration and subject to fulfillment of requirements as specified by GST Act, a non-resident taxable person will be granted registration certificate for a period specified in the application or maximum of 90 days which may be further extended to another 90 days.
Levy and Collection of Tax
The procedure of charging and collection that is applicable to a resident tax payer is applicable to non-resident tax payer.
Input Tax credit
A non-resident taxable person shall not avail any input tax credit in respect of goods or services except on those imported by him.
Therefore, the taxes paid by a non-resident taxable person shall be available as credit to the respective recipients.
Advance Payment of Tax
A non-resident taxable person shall, at the time of submission of application for registration is required to make an advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.
If registration is to be extended beyond the initial period of 90 days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond 90 days is being sought.
Furnishing of return
A non-resident taxable person shall, for every calendar month or part thereof, furnish, a return (disclosure to GST department) in GSTR-05, electronically, within 20 days after the end of a calendar month or within 7 days after the last day of the period of registration, whichever is earlier.
Refund of tax
The amount of advance tax deposited by a non-resident taxable person under GST will be refunded only after the person has furnished all the returns required in respect of the entire period for which the certificate of registration granted to him had remained in force serial no. 13 of the FORM GSTR -5
