Non-Resident Taxable Person under GST
Wednesday Jul 19, 2017

The concept of non-resident taxable person (‘NRTP’) introduced under the GST laws has led to raised eyebrows by the foreign companies doing, or intending to do, business with India. The concept applies equally to suppliers of goods, as well as services, based outside India and having customers/clients in India.

Section 2(77) of the Central Goods and Services Act, 2017 (‘CGST Act’) defines NRTP as: <i>“non-resident taxable person” means any person who occasionally undertakes transactions involving 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;”</i>

The CGST Act further lays down the compliance requirement for registration, payment of taxes and related compliances under Section 24 covering NRTP under the mandatory requirement for obtaining registration, irrespective of the exemption for turnover threshold of INR 2 million (INR 1 million for specified States). Further, a person registered as NRTP is required to estimate the taxes and pay to the Government in advance. Further, NRTP is entitled to registration for a limited period of 90 days, further extendable by a period not exceeding another 90 days.

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