A foreign business with no fixed establishment in India must register for GST as a non-resident taxable person before making taxable supplies in India, for example at an exhibition or on a short project, and must deposit its estimated tax in advance. Foreign suppliers of online digital services (OIDAR) to unregistered Indian customers register under a simplified scheme. Services imported by Indian businesses are taxed under reverse charge in the recipient's hands, and services exported from India are zero-rated, usually under a Letter of Undertaking.
- Law
- CGST Act 2017 and IGST Act 2017
- NRTP registration
- Valid 90 days, extendable
- Digital services
- OIDAR registration, return GSTR-5A
- Exports
- Zero-rated, LUT in Form RFD-11
Does Indian GST apply to your business?
| Your situation | GST position |
|---|---|
| Foreign company selling services to Indian businesses from abroad | Usually no registration; the Indian business pays IGST under reverse charge |
| Foreign company selling apps, streaming, cloud or other online services to Indian consumers | OIDAR registration and monthly returns in India |
| Foreign company supplying goods or services in India occasionally, such as at a trade fair or on a short contract, with no fixed establishment here | Registration as a non-resident taxable person before starting, with an advance deposit |
| Foreign company importing goods into India | IGST collected by Customs on import, alongside customs duty |
| Indian subsidiary providing services to its foreign parent | Export of services, zero-rated if the conditions are met |
| Indian branch providing services to its own head office abroad | Not an export: a branch and head office are establishments of a distinct person |
A foreign business that sets up an Indian entity registers that entity in the normal way once its turnover crosses the threshold, or earlier if it makes inter-state supplies of goods or other supplies that require compulsory registration. Our Indian subsidiary page covers that route.
Registering as a non-resident taxable person
A non-resident taxable person is someone who occasionally makes taxable supplies in India but has no fixed place of business or residence here. Registration is compulsory whatever the turnover, and must be applied for at least five days before business starts, in Form GST REG-09.
- Who signs: the application is made through an authorised signatory who is resident in India and holds a PAN. A foreign company gives its tax identification number and incorporation details; an individual gives a passport.
- Advance deposit: under section 27 of the CGST Act the applicant deposits an amount equal to the estimated tax liability for the period of registration. Registration is granted after the deposit.
- Validity: up to 90 days, extendable by a further 90 days on application with an additional deposit.
- Returns and credit: monthly returns in Form GSTR-5. Input tax credit is largely restricted to tax paid on goods the person imports; credit on most domestic purchases is blocked.
- Refund: any balance of the deposit is refunded after the final return.
We act as or arrange the authorised signatory, estimate the deposit realistically, and plan invoicing so that the registration covers the exhibition or project dates with a margin.
OIDAR: digital services to customers in India
Online information and database access or retrieval services include streaming, online gaming access, software and app downloads, cloud services, e-books, online advertising, data storage and similar services delivered over the internet with minimal human involvement. The place of supply of OIDAR services is the location of the recipient.
- When the Indian customer is not registered for GST (consumers, and businesses that are not registered), the foreign supplier must register under the simplified scheme in Form GST REG-10, charge IGST and file monthly returns in Form GSTR-5A. Since the Finance Act 2023, this covers supplies to any unregistered person in India, including government and non-profit bodies.
- The supplier may appoint a person in India as its representative to pay tax and file returns.
- When the customer is registered, the Indian business pays tax under reverse charge, and the supplier should collect and keep its GSTIN as evidence.
- Marketplaces that sell OIDAR services of other foreign suppliers can be treated as the supplier for GST.
Customer location is established from factors such as billing address, card or bank details, IP address and SIM country. Keep evidence of two non-contradictory factors for each customer.
Place of supply and reverse charge on imported services
For cross-border services, section 13 of the IGST Act sets the place of supply. The default rule is the location of the recipient, which is why most services provided by a foreign company to an Indian business are taxed in India under reverse charge: the Indian recipient self-assesses IGST, usually at 18%, and takes input tax credit if it is entitled to. The foreign supplier does not register.
Exceptions take the place of supply to where the service is actually performed or located: services on goods physically made available, services relating to immovable property, admission to and organisation of events, and passenger transport. A foreign supplier performing these in India may need non-resident registration. Intermediary services have historically been placed at the location of the supplier, which denied export status to Indian agents and brokers working for foreign principals. The GST Council recommended in 2025 that intermediaries follow the general rule; check whether the amendment applies to the invoices in question before relying on it.
Exporting services from India: zero rating and LUT
An Indian supplier, such as your subsidiary or an Indian vendor, exports services when the supplier is in India, the recipient is outside India, the place of supply is outside India, payment is received in convertible foreign exchange or in Indian rupees where the RBI permits, and the two are not merely establishments of a distinct person. Exports are zero-rated under section 16 of the IGST Act.
The exporter can either supply without paying IGST under a Letter of Undertaking filed online each financial year in Form GST RFD-11 and claim refund of unused input tax credit, or pay IGST and claim a refund of that tax. The LUT route is the norm because it avoids locking up cash. Keep the bank realisation evidence, the intercompany agreement and invoices that describe the service accurately, because refund claims are examined closely. Withholding tax and FEMA rules on the payment run in parallel; see FDI and FEMA compliance.
Rates and related levies
From 22 September 2025, GST rates were rationalised into two main slabs of 5% and 18%, with a special 40% rate on a narrow list of goods. Most business services, including software, consulting and digital services, are taxed at 18%. Goods imported into India attract IGST at the applicable rate, collected at customs with basic customs duty. The 6% equalisation levy on online advertising services was abolished from 1 April 2025, and the 2% levy on e-commerce supplies ended earlier, in August 2024, so GST and income tax rules now carry most of the tax burden on digital businesses.
Mistakes foreign businesses make with Indian GST
- Exhibiting or delivering a short project in India without non-resident registration.
- Selling digital subscriptions to Indian consumers for years without OIDAR registration.
- Indian branches treating services to head office as exports.
- Exporting without an LUT for the current year, which makes the export taxable until fixed.
- Contracts that do not say whether prices include GST, leading to disputes over who bears the reverse charge.
Pricing and tax clauses should be agreed at the drafting stage; see commercial contracts.
Documents you need
For registration or a GST position review we usually need:
- Description of the products or services and how they are delivered to India
- Sample contracts, invoices and customer lists by country
- Certificate of incorporation and tax identification number of the foreign business
- Board resolution or authority letter for the authorised signatory
- PAN and KYC of the authorised signatory or representative in India
- Estimated Indian sales for the registration period, for the advance deposit
- Bank account details for refunds
- Details of any Indian entity, branch or office of the group
How we handle it for you
Position review
We map your supplies to the GST rules and confirm whether you must register.
Registration
REG-09 or REG-10 filed, deposit or representative arranged, GSTIN obtained.
Invoicing setup
Invoice format, tax rate, customer location evidence and LUT where exporting.
Returns
Monthly GSTR-5 or GSTR-5A filings, or support to your Indian entity's returns.
Notices and refunds
Replies to GST notices and refund claims for deposits or exports.
Why clients choose ProudLegal
Built for clients abroadVideo calls in your time zone and documents signed where you live.
Advocates who appear in Indian courtsYour case is drafted and argued by enrolled advocates in India.
Written fee quote firstScope and fees confirmed in writing before any work starts.
Updates after every stepScans of every filing and order on WhatsApp and email.
Frequently asked questions
Does a foreign company selling services to Indian businesses need GST registration?
Usually not. The Indian business pays IGST under reverse charge on imported services. Registration is needed for OIDAR supplies to unregistered customers or for taxable supplies made in India.
What is a non-resident taxable person under GST?
A person without a fixed place of business or residence in India who occasionally makes taxable supplies here. Registration is compulsory, valid up to 90 days and needs an advance deposit of the estimated tax.
Can a foreign company register for GST without an Indian address?
A non-resident registration is made through an authorised signatory resident in India with a PAN. OIDAR suppliers register under a simplified scheme and may appoint a representative in India.
Is GST charged on services exported from India?
No, exports are zero-rated. The exporter usually supplies under a Letter of Undertaking without paying IGST and claims refund of unused input tax credit.
Are services from an Indian branch to its foreign head office exports?
No. A branch and its head office are treated as establishments of a distinct person, so those services do not qualify as exports. A subsidiary is a separate person.
What GST rate applies to digital services?
Most digital and business services are taxed at 18% after the September 2025 rate rationalisation.
Do OIDAR rules apply to sales to Indian businesses?
If the business customer is GST-registered, it pays tax under reverse charge and the foreign supplier need not charge GST. Supplies to unregistered customers fall under OIDAR registration.
Is equalisation levy still payable?
No. The 2% levy on e-commerce supplies ended in August 2024 and the 6% levy on online advertising was abolished from 1 April 2025.