GST Portal Guide: Registration, Return Filing & Payment for Foreign Companies

Why Foreign Companies Need GST Registration in India

India's Goods and Services Tax (GST) applies to every entity that supplies taxable goods or services within Indian territory, regardless of where that entity is incorporated. If your foreign company sells products to Indian customers, provides consulting services to an Indian subsidiary, licenses software to Indian users, or undertakes project work in India, you are likely required to register on the GST portal at gst.gov.in.

The threshold exemption of INR 20 lakh (INR 10 lakh for special category states) that applies to domestic businesses does not apply to foreign companies. Under Section 24 of the CGST Act, a non-resident taxable person must register regardless of turnover. This is a critical distinction that catches many foreign companies off guard.

Understanding the GST portal's registration workflow, return filing mechanics, and payment processes is essential for compliance. A missed deadline or incorrect filing can trigger late fees of INR 50 per day (INR 20 for nil returns), interest at 18% per annum, and cascading filing blocks that prevent you from submitting future returns.

Understanding Your Registration Category

The GST portal treats foreign companies differently depending on their presence in India. Getting your category right is the first step toward correct compliance.

Regular Taxpayer (With Indian Establishment)

If your company operates through a wholly owned subsidiary, branch office, liaison office, or project office in India, you register as a regular taxpayer. This gives you a permanent GSTIN, access to Input Tax Credit (ITC), and the requirement to file monthly or quarterly returns (GSTR-1 and GSTR-3B).

Regular taxpayer registration requires a PAN (Permanent Account Number) for the Indian entity, along with standard incorporation documents, proof of principal place of business, and authorized signatory details.

Non-Resident Taxable Person (NRTP)

If your foreign company occasionally undertakes taxable transactions in India without having a fixed place of business, you register as a Non-Resident Taxable Person (NRTP). NRTP registration is temporary (valid for 90 days, extendable) and requires advance deposit of estimated GST liability.

NRTPs file GSTR-5 instead of GSTR-1/GSTR-3B and cannot claim ITC on goods or services procured from unregistered suppliers. Your authorized signatory must be a resident Indian with a valid PAN.

OIDAR Service Providers

Foreign companies providing Online Information Database Access and Retrieval (OIDAR) services to non-taxable Indian recipients register under a simplified scheme. This covers SaaS platforms, streaming services, online advertising, and cloud computing services sold to individual Indian consumers. OIDAR providers file GSTR-5A and can use international payment networks (SWIFT) for GST remittance.

Step-by-Step GST Registration Process for Foreign Companies

The entire registration process is online through the GST portal. Here is the complete workflow for NRTP registration, which is the most common path for foreign companies entering India.

Step 1: Appoint an Authorized Indian Signatory

Before you begin, you need a resident Indian with a valid PAN who will act as your authorized signatory. This person signs the application, receives communications from the GST department, and is responsible for compliance. Many foreign companies appoint their Indian legal counsel or a representative from their GST compliance service provider.

Step 2: Generate a Temporary Reference Number (TRN)

Visit services.gst.gov.in and navigate to Services > Registration > New Registration. Select "Taxpayer" and choose the state where you will conduct business. Enter your authorized signatory's PAN, mobile number, and email. The portal sends OTPs to both the mobile number and email for verification. Upon successful verification, you receive a 15-digit TRN.

Step 3: Complete Part B of the Application

Log back into the portal using your TRN. Complete the multi-tab application form (REG-09 for NRTPs) with the following details:

• Business Details: Legal name, trade name, constitution of business (select "Non-Resident Taxable Person"), and date of commencement in India
• Promoter/Partner Information: Details of the foreign company directors and authorized signatory
• Principal Place of Business: Address where business will be conducted in India, with proof (rental agreement, NOC from property owner)
• Goods/Services: HSN codes for goods or SAC codes for services you will supply
• Bank Account: Indian bank account details (you must open an account before registration)

Step 4: Upload Required Documents

The GST portal requires the following documents for NRTP registration:

• Certificate of Incorporation of the foreign company (apostilled or notarized)
• Tax Identification Number (TIN) from the home country
• Passport and visa copies of the authorized signatory
• Authorization letter from the foreign company appointing the signatory
• PAN card of the authorized signatory
• Proof of principal place of business in India
• Indian bank account statement or cancelled cheque
• Digital Signature Certificate (DSC) of the authorized signatory (Class 2 or above)

Step 5: Deposit Estimated GST Liability

Unlike regular taxpayers, NRTPs must deposit the estimated GST liability for the entire registration period upfront. Calculate your expected taxable supplies, apply the applicable GST rate (typically 18% for services), and deposit the amount via the PMT-06 challan on the portal. This advance deposit is adjusted against your actual GST liability during return filing.

Step 6: Submit and Track Application

Sign the application using the DSC and submit. The portal generates an Application Reference Number (ARN). Under the GST 2.0 initiative launched in November 2025, applications meeting standard criteria receive automatic approval within 3 working days. You can track status at Services > Registration > Track Application Status using your ARN.

Upon approval, the portal issues a GST Registration Certificate and a 15-digit GSTIN (GST Identification Number). Download and preserve both documents.

Navigating the GST Portal: Key Features for Foreign Companies

The GST portal (gst.gov.in) is more than a filing platform. Foreign companies should familiarize themselves with these essential modules:

Dashboard and Notices

Your dashboard displays pending returns, upcoming deadlines, and any notices from the GST department. Check this weekly. Notices from the department carry strict response deadlines, and failure to respond can result in assessment orders being passed against you without your input.

E-Way Bill System (Version 2.0)

If your company moves goods within India, you must generate e-way bills for consignments valued above INR 50,000. The E-Way Bill 2.0 portal, launched on July 1, 2025, offers real-time data sync, API access, and cross-portal operations. E-way bills are valid for specific distances and timeframes, and failure to carry a valid e-way bill during transit attracts a penalty equal to 200% of the tax due.

E-Invoice System

Effective April 1, 2025, all taxpayers with an Aggregate Annual Turnover (AATO) of INR 10 crore and above must report B2B e-invoices within 30 days from the invoice date. The e-invoice system generates an Invoice Reference Number (IRN), digitally signed e-invoice, and QR code. Updated API specifications (version 3.2, released January 2026) support batch processing of up to 500 invoices per API call.

Electronic Cash and Credit Ledgers

The portal maintains three electronic ledgers for each taxpayer: the Cash Ledger (deposits and payments), the Credit Ledger (ITC claims), and the Liability Ledger (tax obligations). Foreign companies should reconcile these ledgers monthly to ensure deposits match liabilities and ITC claims are accurate.

Return Filing: GSTR-5 for Non-Resident Taxable Persons

The GSTR-5 is the primary return for foreign companies registered as NRTPs. Here is how to file it correctly.

What GSTR-5 Contains

GSTR-5 captures the following information:

Filing Timeline

GSTR-5 must be filed by the 13th of the following month. For example, GSTR-5 for January 2026 is due by February 13, 2026. If your NRTP registration expires, you must file the final GSTR-5 within 7 days after the last day of registration.

Late Filing Penalties

Missing the GSTR-5 deadline triggers:

• Late fee: INR 50 per day (INR 25 CGST + INR 25 SGST/UTGST) for regular returns; INR 20 per day for nil returns, subject to a maximum of INR 5,000
• Interest: 18% per annum on the outstanding tax liability from the day after the due date until payment
• Cascading block: Failure to file one month's GSTR-5 blocks filing for subsequent months, creating a compliance backlog

Step-by-Step Filing Process

1. Log into the GST portal with your GSTIN and credentials
2. Navigate to Services > Returns > Returns Dashboard
3. Select the return period and click "Prepare Online" or "Prepare Offline" (offline utility is available for large data sets)
4. Enter inward supply details in Table 3 (supplier GSTIN, invoice number, date, taxable value, tax amounts)
5. Enter outward supply details in Table 5 (recipient GSTIN for B2B, invoice details, HSN/SAC codes, tax amounts)
6. Review auto-calculated tax liability in Tables 7-8
7. Offset the tax liability against the advance deposit or make additional payment via PMT-06
8. Preview the return, sign with DSC, and submit

Return Filing for Regular Taxpayers: GSTR-1 and GSTR-3B

Foreign companies with a permanent establishment in India (subsidiary, branch office) file returns as regular taxpayers. This involves two primary returns:

GSTR-1: Outward Supply Details

GSTR-1 captures all outward (sales) invoices for the period. Monthly filers (turnover above INR 5 crore) must submit by the 11th of the following month. Quarterly filers (under INR 5 crore, QRMP scheme) file by the 13th of the month following the quarter.

GSTR-3B: Summary Return and Tax Payment

GSTR-3B is a monthly self-declaration summarizing outward supplies, ITC claims, and net tax payable. Due by the 20th of the following month. Starting from the July 2025 tax period, Table 3 values in GSTR-3B are auto-populated and non-editable from GSTR-1/GSTR-1A data, reducing manual errors but requiring meticulous GSTR-1 filing.

ITC Reconciliation

Input Tax Credit is critical for managing your effective GST cost. Regular taxpayers claim ITC on business inputs through GSTR-3B. The portal's ITC matching engine cross-references your claims against your suppliers' GSTR-1 filings. Mismatches appear in GSTR-2B (auto-generated monthly). Foreign companies should reconcile GSTR-2B data with their purchase records before filing GSTR-3B to avoid ITC reversals. The e-invoicing system has reduced ITC mismatch disputes by 30% between FY 2022-23 and FY 2025-26.

GST Payment Process: Using PMT-06 Challans

All GST payments flow through Form GST PMT-06, the unified payment challan. Here is how foreign companies should handle payments.

Generating a PMT-06 Challan

1. Log into the GST portal and navigate to Services > Payments > Create Challan
2. Enter the amounts for each tax head: CGST, SGST/UTGST, IGST, and Cess
3. Select payment mode: Net Banking, NEFT/RTGS, or Over-the-Counter (OTC)
4. The system generates a challan valid for 15 days

Payment Methods

For NRTPs, the advance GST deposit at the time of registration is also made through PMT-06. OIDAR service providers can additionally use SWIFT international payment networks.

Electronic Cash Ledger

Payments credited through PMT-06 appear in your Electronic Cash Ledger on the GST portal. This ledger functions like a virtual wallet: you deposit funds, and the system debits from it when you file returns and offset tax liabilities. Always ensure your Cash Ledger balance is sufficient before the return filing deadline.

Refund of Excess Deposits

If your advance deposit (NRTP) or cash ledger balance exceeds your actual tax liability, you can claim a refund through Form GST RFD-01 on the portal. Refunds are typically processed within 60 days of application, subject to verification. Foreign companies should note that refund amounts are credited to the Indian bank account on file, not to overseas accounts.

Common GST Portal Challenges for Foreign Companies

Based on our experience helping hundreds of foreign companies with GST compliance in India, these are the issues that come up most frequently:

DSC and Authorization Issues

The GST portal requires a Digital Signature Certificate for signing applications and returns. Foreign nationals often face delays obtaining a DSC from Indian certifying authorities. Plan for 5-7 business days for DSC issuance. The DSC must be renewed annually, and a lapsed DSC blocks all portal activities.

PAN and Aadhaar Requirements

While the foreign company itself may not have an Indian PAN, the authorized signatory must. In 2026, all GST registrations require Aadhaar authentication of the authorized signatory. Foreign signatories who cannot obtain Aadhaar must use the biometric verification process at a GST Suvidha Kendra, adding 2-3 days to the timeline.

State-Wise Registration

GST registration is state-specific. If your company operates in multiple Indian states, you need separate registrations (and separate GSTINs) for each state. This multiplies your compliance obligations proportionally. Consider whether your business model truly requires multi-state presence, or whether routing transactions through a single state is feasible.

Currency and Bank Account Complications

GST is denominated in Indian Rupees. Foreign companies must maintain an Indian bank account for GST payments and refunds. Opening a bank account as a foreign entity requires FEMA compliance documentation, which can take 3-6 weeks. Start the bank account process well before your GST registration deadline.

Annual Compliance and Audit Requirements

Beyond monthly or quarterly returns, foreign companies registered under GST must comply with annual requirements:

GSTR-9: Annual Return

All regular taxpayers must file GSTR-9, an annual return consolidating the year's GST data. Due by December 31 of the following financial year (e.g., FY 2025-26 annual return is due by December 31, 2026). NRTPs with temporary registration are exempt from GSTR-9.

GSTR-9C: Reconciliation Statement

Taxpayers with turnover exceeding INR 5 crore must file GSTR-9C, a reconciliation statement between their audited financial statements and GST returns. This requires a chartered accountant's certification and is a common area where discrepancies surface for foreign companies due to differences between accounting standards and GST treatment.

GST Audit Triggers

The GST department may initiate audits based on risk assessment. Common triggers for foreign companies include significant ITC claims, mismatch between transfer pricing documentation and GST valuations, irregular filing patterns, and large refund claims. Maintain detailed records of all transactions, contracts, and pricing methodologies to support your filings during an audit.

GST Compliance Integration with Other Regulatory Obligations

For foreign companies operating in India, GST compliance does not exist in isolation. It intersects with several other regulatory frameworks that must be managed concurrently.

FEMA and FDI Compliance

Foreign companies that have invested in India through the automatic route or government approval route must ensure that their GST registrations align with their FEMA filings. The GSTIN must match the entity details reported in FC-GPR filings, and any changes to the business structure (new branches, additional places of business) must be updated in both GST and FEMA records simultaneously.

Transfer Pricing and GST Valuation

For Indian subsidiaries of foreign companies, the transfer pricing methodology used for inter-company transactions must be consistent with GST valuation rules. Under Rule 28 of the CGST Rules, supplies between related parties (including a foreign parent and its Indian subsidiary) are valued at open market value. Discrepancies between transfer pricing documentation and GST valuations are a common audit trigger.

Income Tax and TDS Coordination

GST payments and input tax credits interact with the corporate tax computation. GST paid on business expenses is not deductible as an expense for income tax purposes if ITC has been claimed. Additionally, TDS (Tax Deducted at Source) obligations under Section 194 continue to apply on the value of supply net of GST, not on the GST-inclusive amount.

Import-Export and Customs

Foreign companies importing goods into India must link their IEC (Import Export Code) with their GSTIN. Customs duty paid during import is available as ITC under GST, provided the Bill of Entry correctly references the GSTIN. Mismatched IEC-GSTIN records are a frequent cause of ITC denial at the assessment stage.

Annual Filing Calendar for Foreign Companies

Managing multiple compliance deadlines is critical. Here is the annual GST calendar that foreign companies should track:

Engaging a specialized GST compliance service is strongly recommended for foreign companies navigating these overlapping obligations. The cost of professional compliance management is a fraction of the penalties and disruption caused by missed deadlines or incorrect filings.

Key Takeaways

• Foreign companies must register for GST regardless of turnover. Choose between NRTP registration (temporary, advance deposit required, GSTR-5 filing) or regular taxpayer registration (permanent, standard GSTR-1/3B filing) based on your India presence.
• The GST 2.0 auto-approval system processes registrations within 3 working days. Have your DSC, PAN, bank account, and authorized signatory ready before applying.
• GSTR-5 is due by the 13th of the following month. Late fees of INR 50/day and 18% interest apply immediately. Non-filing blocks future returns.
• All payments flow through PMT-06 challans. Online payments made before 8 PM are credited to your Electronic Cash Ledger on the same day.
• From July 2025, GSTR-3B Table 3 values are auto-populated and locked from GSTR-1 data. Accuracy in GSTR-1 filing is now non-negotiable for regular taxpayers.