Article

How a Foreign Company Should Register for Goods and Services Tax (GST) in India

How a Foreign Company Should Register for Goods and Services Tax (GST) in India

177 views

Knowing how to register a company in India is paramount for expatriate entrepreneurs who wish to enter the promising Indian market. Goods and Services Tax (GST) has been implemented since the first of July, 2017 in India and taxpayers that are not Indian residents are also required by law to obtain Goods and Services Tax (GST) registration, and file Goods and Services Tax (GST) returns.

Before you think of how to register a company in India, you would need to understand who a non-resident taxpayer is by legal definition. Non-resident taxpayers, according to the Goods and Services Tax (GST) Act on India, refers to anybody who from time to time undertakes transactions involving the supply of goods and services either as an agent or as principal and has no regular place of residence or business in India.

Anybody that belongs to the category of non registered taxable persons are by law conditioned to hire an authorized person in India for the sole purpose of complying with Goods and Services Tax (GST) registration.

Taxpayers that are non-resident in India are required by law to obtain Goods and Services Tax (GST) registration forms as a foreign taxpayer that is non-resident in India, a minimum of five days before launching a business in India. Applying for Goods and Services Tax (GST) registration for foreign non-resident taxable individuals must be made through authorized personnel in India.

As soon as a Goods and Services Tax (GST) registration application is filed,  a transaction it would be duly generated. Using the transaction id, there must be a Goods and Services Tax (GST) deposit made by the taxpayer before obtaining a Goods and Services Tax (GST) registration is possible in India.

Offering a variety of services like, migration of Goods and Services Tax (GST),  registration of Goods and Services Tax (GST), return Filling of Goods and Services Tax (GST), PLC registration, filling of trademark and more,  IndiaFillings is the leading business service avenue. They can show you how to register a company in India.

They can aid foreign Companies with full-time Goods and Services Tax (GST) compliance services, starting from registration to return Filling through a proprietary Goods and Services Tax (GST) accounting application software. The mean time used in the registration of Goods and Services Tax (GST) is 10 to 15 business days, although it is still subject to government processing time and clientele documents submission.

Advantages of Goods and Services Tax (GST)

To understand how to register a company in India, the following pros of GST must be known.

Promotes a unified platform: with Goods and Services Tax (GST) implementation in India, indirect taxes would be standardized. Businesses would not need to obtain multiple VAT registration in different states or obtain vat and service tax registration separately, under the Goods and Services Tax (GST) regime. A single Goods and Services Tax (GST) registration is enough, India wide for selling or purchasing goods or the providence of services.

Aids subsuming of taxes: it conspicuously subsumes other taxes, for instance, central sales tax, customs duty, purchase tax, luxury tax, etc. Therefore, under Goods and Services Tax (GST), most taxes existing today would be subsumed into a single tax. This would render the collection of tax, and it’s accompanying compliance easy for various businesses across India.

It would lower taxes: businesses are to comply entirely with VAT regulations once they cross a yearly turnover of RS.5 lakhs, in some states currently under the vat regime. Goods and Services Tax (GST) liability augments only if an entity crosses a yearly turnover of Rs.10 lakhs in Northeast of hill state, under Goods and Services Tax (GST) regime. Whereas, the threshold is put as Rs.20 lakhs in the rest of India.

Eases the modus operandi of doing business: Businesses like restaurants, computer services businesses have to work with both VAT and Goods and Services Tax (Goods and Services Tax (GST)) regulations currently. It creates a burden of compliance for such businesses, as they are billed to calculate taxes for each transaction based on differing rates for different items. The factors distinguishing goods and services would disappear making carrying out business less of a burden, under Goods and Services Tax (Goods and Services Tax (GST)).

It has a broader tax base: Goods and Services Tax (Goods and Services Tax (GST)) by expectations, would increase the tax base in the country significantly. The overall tax liability for Businesses would hence be expected to reduce overtime, as businesses become more and more compliant.

Additionally, Goods and Services Tax (Goods and Services Tax (GST)) would subscribe to the latest technology for use, including data from Aadhaar database, PAN database, etc to ensure that the registration of Goods and Services Tax (Goods and Services Tax (GST)) and the return filing processes as hassle-free as possible and without much fuss.

Learning about these steps will go a long way in understanding how to register a company in India.

Leave a reply