prpri GST Impact Analysis on Non Resident Taxable Person GST Impact Analysis on Non Resident Taxable Person


´First of all lets start from the simple definition as per Section 2(77) of CGST Act, 2017 of “Non Resident Taxable Person” which 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.´

´According to Section 24(v) of CGST Act, 2017  every non resident taxable persons are compulsorily get himself registered and at least five days prior to the commencement of business in FORM REG-09

´As per Section 27 of CGST Act, 2017 the certificate of registration will be valid for ninety days and can be extended for further period of maximum ninety days in FORM REG-11.


Every registered taxable person can take the main core benefit of GST i.e. Input Tax Credit.

Unlike the normal taxable person, Non Resident Taxable Person can not take the benefit of Input Tax Credit as the same has been restricted under section 17(5)(g) of CGST Act, 2017.

Filling of GST Returns

Every registered taxable person should require to file GST Return as per section 37 of CGST Act, 2017.

As per Section 39(5) every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, in GSTR-5 return, electronically, within twenty days after the end of a calendar month or within seven days after the last day of the period of registration specified under sub-section (1) of section 27(as mentioned in slide number 2), whichever is earlier.

Further as per Section 45 of CGST Act, 2017 every registered person who is required to furnish a return under sub-section (1) of section 39 and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation or date of order of cancellation, whichever is later.

Advance Tax Deposition

Every non resident taxable person should require to pay advance tax as per Section 27(2) of CGST Act, 2017.

Hence, every non resident taxable person shall, at the time of submission of application for registration under sub-section (1) of section 25, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.

Provided that where any extension of time is sought, then such taxable person shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.

The amount deposited as above shall be credited to the electronic cash ledger of such person and shall be utilised in discharging the GST Liability.

Refund of Advance Tax Deposition

As per Section 54(13) of CGST Act, 2017 the amount of advance tax deposited by a non-resident taxable person under sub-section (2) of section 27 of CGST Act, 2017, shall not be refunded unless such person has, in respect of the entire period for which the certificate of registration granted to him had remained in force, furnished all the returns required under section 39(as discussed in slide number 4).

Hence, refund will be granted only if non resident taxable person have filled all the due return under GST Law.

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August 2021