Who is a Non-Resident Taxable Person (NRTP)?

In the Indian Goods and Services Tax (GST) framework, taxation applies not only to domestic businesses but also to foreign entities and individuals engaging in economic activities within the country. One such category under GST is the Non-Resident Taxable Person (NRTP).

Definition of a Non-Resident Taxable Person (NRTP)

A Non-Resident Taxable Person is defined under Section 2(77) of the Central Goods and Services Tax (CGST) Act, 2017, as a person who:

• Is not a resident of India

• Supplies goods or services in India, either directly or indirectly

• Engages in business or commerce in India, whether through an agent or otherwise

In other words, any business entity or individual who is not a permanent resident of India but makes taxable supplies in India is considered a Non-Resident Taxable Person under GST. These individuals or businesses must comply with GST laws and follow specific registration and compliance procedures to operate in India.

Who Needs to Register as a Non-Resident Taxable Person?

Businesses or individuals falling under the following categories must register as an NRTP:

1. Foreign Businesses Providing Services in India – Companies or individuals offering consulting, software development, legal, or other professional services from outside India but generating revenue from Indian clients.

2. Foreign Suppliers Participating in Trade Exhibitions or Fairs – International vendors setting up stalls in India to showcase and sell their products.

3. E-commerce Operators – Foreign e-commerce platforms selling goods or services to Indian customers.

4. Agents of Foreign Companies in India – Indian representatives or agents facilitating business transactions on behalf of foreign entities.

5. Importers of Services – Businesses importing services but without a permanent establishment in India.

GST Registration Process for Non-Resident Taxable Persons

Unlike regular GST registration, NRTPs follow a special registration process:

1. Online Registration via GST Portal

• The NRTP must submit an application for registration in Form GST REG-09 through the GST portal before making any taxable supply in India.

2. Appointment of an Authorized Representative

• NRTPs must appoint an authorized signatory in India to handle GST compliance on their behalf.

3. Advance Tax Payment

• A Non-Resident Taxable Person must pay the estimated tax liability in advance before registration is granted. This ensures tax compliance and prevents revenue leakage.

4. Issuance of Temporary GSTIN

• Once the application is verified, the GST department issues a temporary GST Identification Number (GSTIN) for the period specified in the application.

5. Filing GST Returns

• NRTPs are required to file GSTR-5, a return specifically designed for non-resident taxpayers. This must be filed within 20 days after the end of the tax period.

Key Compliance Requirements for NRTPs

• Mandatory GST Registration – NRTPs cannot operate in India without GST registration, regardless of turnover.

• No Composition Scheme – Unlike regular taxpayers, NRTPs are not eligible for the Composition Scheme.

• Advance Tax Deposit – The entire estimated tax liability must be paid in advance before commencing business operations.

• Limited Registration Period – Registration is valid for 90 days, extendable upon request.

Impact of GST on NRTPs in Rajasthan

For businesses operating in Rajasthan, additional state-specific considerations apply:

• Foreign exhibitors at Rajasthan trade fairs – Any foreign entity setting up a stall at events like the Jaipur Trade Expo must register as an NRTP.

• Tourism and Hospitality Services – Rajasthan attracts a high number of foreign service providers in tourism and hospitality. These providers need to comply with NRTP registration rules.

• Handicraft and Textile Trade – Many foreign traders participate in Rajasthan’s handicraft and textile exhibitions and must register under GST.

Conclusion

A Non-Resident Taxable Person (NRTP) under GST is any foreign individual or entity conducting taxable transactions in India without a permanent business establishment. Compliance with GST regulations, including mandatory registration, advance tax payment, and return filing, is essential for smooth operations. Businesses targeting Rajasthan must also ensure they adhere to local state rules for GST compliance.

Need assistance with NRTP registration and GST compliance in India or Rajasthan? Get in touch with a GST expert today!