GST Glossary: Meaning and provisions of “non-resident taxable person” under GST Model Law

As we are aware that GST will also be applicable on non – resident. he most important question is that who will the non resident taxable person for the levy of GST. Section 2(69) of Model GST Law defines it as

“a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India”
Analysis:

1. A non resident will be chargeable to GST only if he is a Taxable person (defined by section 9 of Model GST Law)
2. As per para 5 (item no.IV) of Schedule III of GST Model law a non resident taxable person is required to take registration under GST without any threshold limit. If a non resident undertakes any transaction of supply of Goods and/or services they will be liable for registration under GST.
3. Section 9 provide that any person registered or liable to be registered under schedule III is taxable person. A non resident providing any supply of Goods and/or services will be a taxable person also without any threshold limit.
4. A non resident shall not have a fixed place of business in India. Section 19 of Model GST Law provide that a non resident can take registration even without a PAN in India. A non resident will be registered under GST on the basis of some other specified document.
5. We can say that a non resident will have to take registration for any supply in India.
6. Section 19A of Model GST Law provides for the special provisions relating to non residents. A non resident taxpayer will be initially granted the registration for 90 days from the date of registration.
7. This period can be extended further by 90 days by a proper officer.
8. A non resident will have to deposit the advance tax for the estimated supply for the period for which the registration is sought.
9. The amount so deposited will be credited to the electronic ledger and will be utilized in the manner provided u/s 35 of model GST law.

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