Summary: Foreign companies supplying goods or services in India must determine whether GST registration is necessary and, where applicable, which registration category applies. Two important routes are registration as a Non-Resident Taxable Person (NRTP) under Section 24 of the Central Goods and Services Tax Act, 2017 and Rule 13 of the CGST Rules, or simplified registration for overseas suppliers of Online Information and Database Access or Retrieval (OIDAR) services under Rule 14. NRTP registration is generally intended for occasional taxable supplies in India by persons without a fixed place of business or residence in the country. It requires Form GST REG-09, advance payment of estimated tax liability, an Indian authorised signatory and compliance with a limited registration period, ordinarily not exceeding 90 days, subject to extension. OIDAR registration addresses specified electronic services supplied from outside India to non-taxable online recipients in India. Such suppliers register through Form GST REG-10 and discharge applicable IGST through the prescribed return mechanism. The article examines the expanded OIDAR definition effective from 1 October 2023, the different treatment of business-to-business imports of services under reverse charge, and the distinction between temporary NRTP registration and continuing OIDAR obligations. A comparison table summarises the applicable forms, deposits, duration, nature of supplies and Indian representation requirements. The article also discusses place-of-supply classification, restrictions on input tax credit for NRTPs, extension deadlines and the possible income-tax permanent-establishment implications of activities conducted in India. Correct classification is essential to avoid inappropriate registration, unnecessary deposits and subsequent GST compliance disputes.
GST Registration for Foreign Companies in India: NRTP and OIDAR Compliance
1. Non-resident taxable person (NRTP)
An NRTP is a person who occasionally undertakes transactions involving supply of goods or services in India but has no fixed place of business or residence in India. The key features, as set out in section 24 of the CGST Act and rule 13 of the CGST Rules:
- registration is compulsory, with no turnover threshold;
- the application is in Form GST REG-09, made at least five days before commencement of business;
- an advance deposit of the estimated tax liability is required;
- the registration is valid for the period in the application, up to 90 days, and can be extended;
- the person must nominate an authorised signatory resident in India, and a PAN of the applicant is required (a foreign passport or similar identification is used if no PAN).
It suits trade fairs, short projects and one-off supplies. A foreign company that repeatedly supplies in India will find the NRTP route is more a temporary solution than a permanent one, and a PE analysis will often follow.
2. OIDAR providers
Online information and database access or retrieval (OIDAR) services supplied from outside India to non-taxable online recipients in India are taxed under IGST. Rule 14 of the CGST Rules provides a simplified registration through Form GST REG-10, and the supplier files a monthly return and pays the tax in cash. Key points:
- The place of supply for OIDAR to an unregistered person in India is India.
- The supplier is liable to tax for B2C supplies. Where the recipient is a registered business, the position is different, because the recipient is liable under reverse charge.
- From 1 October 2023, the definition of OIDAR was amended to remove the “essentially automated and minimal human intervention” language, which widens the net to some services that were earlier outside it. Confirm the current wording.
- The supplier may appoint a representative in India or a person in India for tax payment on its behalf.
3. Choosing the route
| Question | NRTP | OIDAR |
|---|---|---|
| Nature of supply | Goods or services, occasional | Online services to Indian consumers |
| Form | GST REG-09 | GST REG-10 |
| Deposit | Required | Not in the same form; monthly payment of tax |
| Duration | Limited, extendable | Continuing |
| Indian presence | Authorised signatory | Possibly a representative |
4. Services that are not NRTP or OIDAR
A foreign company providing business-to-business services to an Indian customer, such as consulting, often needs no GST registration at all, because the recipient pays GST under reverse charge on import of services under section 5(3) of the IGST Act. The registration question arises where the supplier sells goods in India, supplies to unregistered customers, or has a place of business in India.
5. Practical compliance
- Check the place of supply first, since registration depends on it.
- Reconcile invoices to the portal-reported tax.
- For NRTP, plan the deposit and the extension in advance because the registration cannot be extended after it lapses.
- Check input tax credit: an NRTP cannot ordinarily claim input credit except on import of goods, and refund of unutilised deposit follows the procedure.
- Check whether the foreign company’s activities in India also create a PE for income tax.
Practical takeaway: classify the supply before you choose the form. The wrong registration is an expensive error because the rules for deposit, returns and credit differ materially.
Sudheer Nagavarapu is a Partner at A2 Consultants, Hyderabad.
