GST Registration for Foreign Entities & E-Commerce Sellers

It depends entirely on the nature of your India supply. If you are temporarily supplying goods or services in India (e.g., at an exhibition, under a short-duration contract), you require Non-Resident Taxable Person (NRTP) registration. If you are providing OIDAR services (digital content, software, databases) to individual (non-GST-registered) customers in India, you require OIDAR registration regardless of turnover. If you are supplying only to GST-registered Indian businesses who pay GST themselves under the reverse charge mechanism, you may not need to register — but this requires a supply-specific analysis. If you are supplying goods to Indian customers via an Indian e-commerce marketplace, the seller registration obligation depends on whether you have an Indian PAN and an Indian bank account.

An NRTP is specifically defined in Section 2(77) of the CGST Act 2017 as a 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. NRTPs register using Form GST REG-09 on the GST portal, must deposit estimated tax in advance before the GSTIN is activated, file monthly GSTR-5 returns, and hold a registration that is valid for a maximum of 90 days (extendable). A regular GST registration, by contrast, has no advance deposit requirement, no validity period, and files GSTR-1 + GSTR-3B monthly (or quarterly under QRMP). Regular registration is appropriate for entities with a fixed Indian establishment or ongoing supply.

Yes. Under Section 24(ix) of the CGST Act 2017, persons who supply goods or services through an e-commerce operator are mandatorily required to register for GST — regardless of their aggregate turnover. There is no threshold exemption for e-commerce sellers. This applies to all sellers on Amazon, Flipkart, Meesho, Myntra, Nykaa, and any other marketplace that collects Tax Collected at Source (TCS) under Section 52 of the CGST Act. Amazon India's seller agreement also typically requires a valid GSTIN before the seller account is activated.

Tax Collected at Source (TCS) under Section 52 of the CGST Act requires e-commerce operators (like Amazon, Flipkart) to collect 1% of the net value of taxable supplies made through their platform by sellers. This 1% is deducted from the seller's payment at settlement. The operator reports this in their monthly GSTR-8 return, and the collected amount appears in the seller's GSTR-2B as a credit. The seller claims this TCS as credit in their GSTR-3B return, reducing their net GST liability. If the seller's actual GST liability is less than the TCS collected, the balance can be claimed as a refund.

OIDAR (Online Information and Database Access or Retrieval) services are defined in Section 2(17) of the IGST Act to include services delivered over the internet where delivery is automated and minimal human intervention is involved — including software subscriptions, digital content (e-books, music, video streaming), cloud computing services, online gaming, data retrieval, and similar. Foreign entities providing such services to 'non-taxable online recipients' (NTORs) in India — meaning individual consumers and unregistered businesses — are required to register for GST in India and pay IGST at the applicable rate on those supplies, regardless of turnover and without any threshold exemption. The GST must be paid by the foreign supplier, not collected by the Indian recipient.

An NRTP must file GSTR-5 for each calendar month (or part of a month) during which the registration is active. GSTR-5 covers: inward supplies received (B2B), taxable outward supplies, tax payable and paid, and closing balance of the advance deposit. It must be filed within 13 days after the end of each calendar month, or within 7 days after the last day of the validity period of the registration — whichever is earlier. The final GSTR-5 must reconcile the total advance deposit with the actual tax liability; any excess is refunded.

Section 27(2) of the CGST Act requires an NRTP to make an advance deposit of tax equivalent to the estimated tax liability for the period for which the registration is sought. This means: identify the total value of taxable supplies you will make in India during the registration period, apply the applicable GST rate(s), and deposit that estimated tax amount via the GST portal's electronic cash ledger before the GSTIN is activated. The deposit is credited to your electronic cash ledger and adjusted against actual GSTR-5 filings. Any unconsumed balance is refunded on cancellation or expiry.

For NRTP registration (Form GST REG-09) and OIDAR registration (Form GST REG-10), an Indian PAN is not required. The registration uses the foreign entity's passport (for individuals) or Certificate of Incorporation and foreign tax identification number (for companies) as the identity basis. For regular GST registration under REG-01 (e.g., if a foreign entity establishes an Indian branch office), a PAN of the entity — which for a foreign company with an Indian branch would typically be the PAN issued to the branch — is required. The Indian authorised signatory named in any GST application must have an Indian PAN regardless of the registration type.

An authorised signatory for GST registration must be a person designated by the taxpayer entity — it can be any individual, including an employee, director, or a person engaged as an agent. Under GST law, a Chartered Accountant firm or individual CA can be designated as an authorised signatory by obtaining a power of attorney. In practice, PNPC is frequently designated as the authorised representative for foreign clients, enabling us to log into the GST portal, file returns, respond to notices, and manage all GST compliance on the client's behalf without requiring the foreign principal's direct involvement in each filing.

Under Section 122 of the CGST Act, a taxable person who fails to obtain registration despite being required to do so is liable to pay a penalty of 10% of the tax amount due (subject to a minimum of ₹10,000). However, where the failure involves intentional evasion of tax (deliberate non-registration to avoid paying GST), the penalty can extend to 100% of the tax amount. Additionally, interest at 18% per annum is payable on the unpaid tax from the date it became due. These amounts are in addition to the actual tax liability itself. For an e-commerce seller or OIDAR supplier who has been generating revenue without registration for multiple years, the total exposure can be very significant.

You should register for GST immediately and file all outstanding returns. Outstanding monthly GSTR-1 and GSTR-3B returns must be filed from the month in which your first taxable supply on the e-commerce platform was made. Tax, interest at 18% per annum on unpaid tax from the due date, and applicable late fees will be payable at the time of filing. Voluntary regularisation, where you come forward with accurate disclosures and full payment, is treated differently from enforcement-detected evasion. Engaging a CA to manage the regularisation process — preparing accurate return data, calculating the correct interest, and managing the assessment if one is triggered — minimises the total liability exposure.

The place of supply for services is determined under Sections 12 and 13 of the IGST Act 2017. For services supplied by a person located outside India to a person located in India — Section 13 applies. The default rule is: place of supply is the location of the recipient. For services where the location of the recipient cannot be determined, the place of supply is the location of the service provider. For specific service categories (performance-based, immovable property, goods transportation, passenger transport), specific rules override the default. If the place of supply is in India, IGST applies. If the service is supplied to a GST-registered Indian entity, reverse charge typically applies and the Indian entity pays the GST — not the foreign supplier.

The Reverse Charge Mechanism (RCM) under Sections 9(3) and 9(4) of the CGST Act shifts the liability to pay GST from the supplier to the recipient. For services imported from a foreign supplier to an Indian GST-registered recipient, the Indian recipient is liable to pay IGST on the value of the service at the applicable rate — they pay it to the government directly and can then claim it as Input Tax Credit in their GSTR-3B. The foreign supplier does not collect or remit the GST. RCM applies to B2B import of services broadly. It does not apply to B2C import of services — in that case, either the foreign supplier must register (OIDAR) or the supply may be treated as outside the GST net depending on the specific facts.

If all your Indian customers are GST-registered businesses and all your supplies to them fall within the scope of services subject to reverse charge under Section 9(3) of the CGST Act or the Import of Services RCM framework — then as the foreign supplier you may not need to register in India. The Indian recipient pays the GST and claims the ITC. However: (1) you should verify that your specific service category is indeed subject to RCM and not excluded; (2) any B2C supply you make to an Indian consumer creates an obligation regardless of how the B2B supplies are treated; (3) OIDAR services to unregistered recipients remain your obligation regardless of RCM for B2B. We verify the complete picture before confirming no registration is required.

Under the GST framework, a business is required to obtain a separate GST registration in each state where it has a fixed establishment (a place of business, branch, or warehouse). For e-commerce sellers: if you supply goods through an e-commerce platform, GST registration is required in each state from which goods are dispatched or fulfilled — which means if you use a third-party warehouse in multiple states (such as Amazon's FBA fulfillment centres), you may need GST registration in each of those states. For NRTP and OIDAR registrations, registration in one jurisdiction (typically the primary application location or as directed by the GST portal) generally covers India-wide supply.

A foreign entity registered in India under NRTP or OIDAR status has limited ITC eligibility. An NRTP can claim ITC on goods or services received in India that are used for taxable supplies made in India — this is available in GSTR-5. An OIDAR supplier registered under GSTR-5A cannot claim ITC in India. A foreign entity registered as a regular taxable person (through an Indian branch or establishment) can claim standard ITC on all inputs and input services used in the course of taxable supply, subject to the conditions under Section 16 of the CGST Act. The advance deposit made by an NRTP is adjusted against actual liability and is not an ITC claim — it is a pre-payment.

GSTR-5 is the monthly GST return for Non-Resident Taxable Persons, filed within 13 days after the end of the month (or 7 days after the registration expiry, whichever is earlier). It captures: details of outward taxable supplies made during the month (B2B and B2C separately), inward supplies received from registered suppliers, tax liability for the period, and the adjustment of advance deposit against actual tax. The net tax payable (after adjusting the advance deposit) must be paid before filing. GSTR-5 is a simpler return than the standard GSTR-1+GSTR-3B combination but requires accurate supply data.

GSTR-5A is the monthly return for OIDAR service providers supplying services to non-taxable online recipients (NTORs) in India. It is filed by the 20th of the following month and captures: total taxable value of OIDAR services provided to NTORs in India, the IGST payable at the applicable rate, and tax paid. OIDAR suppliers cannot claim ITC on their Indian GSTR-5A; the return is purely an outward tax payment declaration. The IGST is paid and the return is filed every month — there is no quarterly option.

GSTR-8 is the monthly TCS return filed by e-commerce operators (Amazon, Flipkart, Swiggy, Zomato, etc.) who are required to collect Tax Collected at Source at 1% on the net taxable value of supplies made by sellers through their platform. GSTR-8 must be filed by the 10th of the following month. As an e-commerce seller, you do not file GSTR-8 — the operator files it on your behalf. The TCS collected from your settlements appears in your GSTR-2B (available by the 14th of the following month) and is available for you to claim as credit in your GSTR-3B.

Yes. Export of services is zero-rated under Section 16 of the IGST Act 2017. A service is treated as an export if: the supplier is located in India, the recipient is located outside India, the place of supply is outside India, payment is received in convertible foreign exchange (or in Indian rupees where RBI so permits), and the supplier and recipient are not merely establishments of the same person. When an Indian CA firm or IT company provides services to a foreign company, those services are zero-rated exports from India — the Indian supplier charges no GST and can claim refund of ITC. For the foreign recipient (you), there is no Indian GST on the invoice. This is distinct from the foreign entity's own registration obligation for supplies it makes in India.

If a GST officer finds the registration application deficient, they issue a notice in Form GST REG-03 seeking clarification or additional documents. The applicant must respond in Form GST REG-04 within 7 working days. If the response is satisfactory, the GSTIN is issued. If the officer remains unsatisfied, they issue a rejection order in Form GST REG-05. The applicant can then: re-apply with corrected information (a fresh application), or appeal the rejection order to the Appellate Authority under Section 107 of the CGST Act within 3 months of the rejection order date. In practice, PNPC's pre-submission review virtually eliminates rejections — we address likely query points before submission, not after.

No. A single GST registration covers all product or service categories sold by the same entity from the same state. Your GSTR-1 will capture each supply with the correct HSN code (for goods) or SAC code (for services), and the applicable GST rate for each category will be applied. However, if you sell from multiple warehouses in different states, each state requires a separate registration — and the returns for each registration cover only the supplies dispatched from that state's registered address.

CGST (Central GST) and SGST (State GST) apply to intra-state supplies — where the supplier and recipient are in the same state. IGST (Integrated GST) applies to inter-state supplies — where the supplier and recipient are in different states, or to imports and exports. For e-commerce sales: if a seller in Maharashtra sells to a buyer in Maharashtra, CGST + SGST apply (split equally between centre and state at the total GST rate). If the seller in Maharashtra ships to a buyer in Karnataka, IGST applies at the full rate. E-commerce sellers typically make inter-state sales (shipping across India from warehouses), so IGST is the more common tax. The marketplace collects TCS on the net value regardless of whether it is IGST or CGST+SGST.

Selling directly on Indian e-commerce marketplaces as a foreign company faces practical limitations. Amazon India's seller policies require an Indian bank account (for settlements) and a valid Indian PAN or entity registration for the seller account. Flipkart has similar requirements. In practice, foreign entities typically either: (a) set up an Indian subsidiary (Pvt Ltd or LLP), which then registers as the e-commerce seller with Indian GST, PAN, and bank account; or (b) engage an Indian partner or distribution entity that sells through the marketplace. Direct foreign entity selling on Indian marketplaces without an Indian structure is feasible only in limited configurations and requires careful compliance structuring.

NRTP registration must be applied for at least 5 days before the commencement of supply, as specified in Section 27(1) of the CGST Act. Processing typically takes 7–15 working days from submission of a complete application. Supply cannot legally commence before the GSTIN is activated and the advance deposit is credited. Planning your India supply activity with a minimum 30-day lead time for the GST registration process (to allow for any officer queries) is strongly recommended.

Following the GST rate rationalisation implemented in September 2025, GST rates in India are now structured primarily across two principal slabs — 5% and 18% — with a special 40% de-merit rate applying to a short list of luxury and sin goods (large vehicles, tobacco and tobacco products, aerated beverages, and similar categories), and certain supplies at 0% (exempt or zero-rated). This replaced the earlier four-slab structure (5%/12%/18%/28%); most goods previously taxed at 12% or 28% have been moved into the 5% or 18% slabs, with only the de-merit category shifted to 40%. The rate applicable to a specific good is determined by its HSN (Harmonised System of Nomenclature) code under the CGST (Rate) Notification as amended; for services, the rate is determined by the SAC (Services Accounting Code) under the IGST (Rate) Notification. Because rate notifications are amended periodically and specific product/service classifications can shift, PNPC verifies the current applicable rate against the latest notification for each client's HSN/SAC portfolio rather than relying on a static rate card.

Yes. Every taxable supply must be evidenced by a tax invoice (for registered suppliers making taxable supplies to registered buyers), a bill of supply (for exempt supplies or composition dealers), or a tax invoice cum delivery challan. Under Rule 46 of the CGST Rules 2017, a tax invoice must contain: GSTIN of supplier, name and address of supplier, consecutive serial number, date, GSTIN of recipient (for B2B), name and address of recipient, HSN/SAC code, description of goods or services, quantity, taxable value, applicable tax rate, tax amount (CGST + SGST or IGST separately), and place of supply. For B2C supplies above ₹2.5 lakh, additional information is required. E-invoicing (under the e-invoice mandate) is required for businesses above specified turnover thresholds.

E-invoicing under the GST framework requires registered businesses above a specified aggregate turnover threshold to generate all B2B and B2G invoices (not B2C) through the Invoice Registration Portal (IRP), which assigns an Invoice Reference Number (IRN) and a QR code. The threshold has been reduced progressively — as of recent GST notifications, businesses with aggregate turnover above ₹5 crore in any preceding financial year are covered. E-commerce operators are specifically exempted from e-invoicing for their own platform facilitation services (per GST Notification No. 13/2020-CT as amended), but e-commerce sellers who cross the turnover threshold must comply with e-invoicing for B2B sales they make through the marketplace.

E-commerce sellers registered as regular taxable persons are required to file GSTR-9 (annual return) if their aggregate turnover exceeds ₹2 crore in the financial year. GSTR-9 reconciles the monthly return data for the full year with the audited financial statements. Taxpayers with turnover above ₹5 crore must also file GSTR-9C (reconciliation statement and certification by a CA or CMA). NRTPs file final GSTR-5 on expiry or cancellation — there is no separate annual return for NRTPs. OIDAR suppliers file monthly GSTR-5A; there is currently no separate OIDAR annual return requirement under GSTR-9.

Late filing of GSTR-5 attracts a late fee of ₹200 per day (₹100 CGST + ₹100 IGST) for each day of delay, subject to a maximum of ₹10,000. Late filing of GSTR-5A also attracts ₹200 per day. In addition to late fees, interest at 18% per annum is payable on any tax that should have been paid by the filing deadline. For NRTPs, since the advance deposit is made upfront, the interest exposure on late filing is typically limited — but the late fee is a direct cost. For OIDAR suppliers (GSTR-5A), where tax is paid at filing, interest applies on the tax amount from the 20th of the month until actual payment.

PNPC prepares formal written responses to all categories of GST department communications: DRC-01 demand cum show-cause notices, scrutiny assessment notices under Section 61, audit notices under Section 65, and search/seizure notices under Section 67. Our response preparation includes: a detailed factual statement of the taxpayer's position, legal analysis of the relevant CGST/IGST provisions and notifications, reconciliation of the data cited in the notice with the actual returns and books, and quantification of any genuine liability (if a payment is appropriate to mitigate penalty). Every response to a demand notice is reviewed by a senior partner of the firm before submission.

PNPC charges a fixed fee for the GST registration process — covering the application filing, officer query responses, GSTIN activation, and post-registration setup. Ongoing compliance is offered on a monthly retainer that covers return preparation, filing, TCS reconciliation, and notice handling for a defined transaction volume. The exact fee is determined after the initial business model assessment, as the complexity of e-commerce multi-state returns, NRTP registration, and OIDAR compliance differ significantly in scope. All fees are confirmed in writing before engagement begins, with no hidden charges for follow-up within the defined scope.

Three differentiators set PNPC apart for cross-border GST engagements. First, the India-UAE presence: PNPC has offices in Chennai, Bangalore, Hyderabad, and Dubai — for UAE-based foreign entities entering the Indian market, we bridge both jurisdictions with a single team and single point of contact. Second, the depth of cross-border tax expertise: our partners have practiced in both the pre-GST indirect tax regime and since GST's introduction in 2017 — we understand the technical positions on OIDAR, NRTP, and cross-border RCM at the level of CBIC circulars and AAR rulings, not just surface-level compliance. Third, the available senior CA: every client engagement at PNPC has direct access to a partner-level CA — not a junior staff member who escalates only when things go wrong.