Last updated: October 28th, 2022 3:21 PM

GST Registration For Foreign Companies

All individuals should apply for GST registration for foreign companies as per the GST Act. Goods and Services Tax or GST acts as an indirect tax in India. The tax applies to all the goods and services. The liability for payment of GST generally applies to the manufacturer or service provider in the value chain. However, the consumer pays the tax to the supplier along with the price charged. In India, GST shall come into effect from July 1st, 2017 replacing the existing tax structures like VAT, Service Tax, Central Excise, Luxury Tax, etc., In this article, let us look at all aspects of GST registration and filing for foreign companies doing business in India.

Do Foreign Companies Require Indian GST Registration?

Yes, any foreign company that supplies goods and/or services to recipients in India, but operates without a fixed place of business or residence in India should mandatorily obtain GST registration. In the CGST Act, a “non-resident taxable person” has been defined any person who occasionally undertakes 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. And Section 24 of the CGST Act, has mandated that non-resident taxable persons making taxable supply mandatorily obtain GST registration. Hence, all foreign companies that are supplying goods and/or services to recipients in India are required to obtain GST registration. Read the guide to obtaining GST Registration in India.

GST Filing for Foreign Companies

All foreign companies registered with GST should file Form GSTR-5 through the GST Common Portal or a GSP. Like other taxpayers registered under GST, the GST return filed by foreign companies must include details of outward supplies and inward supplies. GST filing and payment of GST liability for foreign companies is due on the 20th of each month or within 7 after the last day of the validity of GST registration, whichever is earlier. Many foreign companies are involved in the supply or providing of Online Information and Database Access or Retrieval (OIDAR) services. Such foreign companies providing OIDAR services to persons in India are also required to obtain GST registration and file monthly GST filing using Form FORM GSTR-5A on or before the 20th of each month.

Instruction for Filing GSTR-5

Form GSTR-5 must be submitted online through the GST Common Portal. 

1. Terms used:
   • GSTIN: Goods and Services Tax Identification Number
   • UIN: Unique Identity Number
   • UQC: Unit Quantity Code
   • HSN: Harmonized System of Nomenclature
   • POS: Place of Supply (Respective State)
   • B to B: From one registered person to another registered person
   • B to C: From registered person to unregistered person
2. GSTR-5 is applicable to non-resident taxable person and it is a monthly return.
3. The details in GSTR-5 should be furnished by 20th of the month succeeding the relevant tax period or within 7 days from the last date of the registration whichever is earlier.
4. Table 3 consists of details of import of goods, bill of entry wise and the taxpayer shall specify the amount of ITC eligible on such import of goods.
5. Recipient to provide for Bill of Entry information including six digits port code and seven digits bill of entry number.
6. Table 4 consists of amendment of import of goods. The details shall reflect in the returns of the earlier tax period.

Categories

1. The taxpayer shall report the invoice-level information, rate-wise, pertaining to the tax period separately for goods and services as under:
   • For all B to B supplies (whether inter-State or intra-State), invoice level details should be uploaded in Table 5;
   • For all inter-state B to C supplies, where invoice value exceeds more than Rs.2,50,000/- (B to C Large) invoice level, the taxpayer should provide the details in Table 6; and
   • For all B to C supplies (whether inter-State or intra-State) where invoice value is up to Rs.2,50,000/- State-wise summary of supplies shall be filed in Table 7.
   • Table 8 consists of amendments in respect of -
     • B2B outward supplies declared in the previous tax period;
     • “B2C inter-State invoices where invoice value is more than 2.5 lakhs” reported in the previous tax period; and
     • Original Debit and credit note details and its amendments.
2. Table 9 covers the Amendments in respect of B2C outward supplies other than inter-State supplies where invoice value is more than Rs.250000/-.
3. Table 10 consists of tax liability on account of outward supplies declared in the current tax period and negative ITC on account of an amendment to import of goods in the current tax period. On submission of GSTR-5, System shall compute the tax liability and the system shall post the ITC to the respective ledgers.

If you are a foreign company requiring GST registration or GST filing services, get in touch with an India Filings Expert.