India GST Registration for US Companies

When Does a US Company Need India GST Registration?

India's Goods and Services Tax applies to any supply of goods or services made within India or imported into India. For US companies, GST registration becomes mandatory in several scenarios, and unlike domestic Indian businesses, there is no turnover threshold exemption.

You need GST registration if your US company:

• Has a subsidiary, branch office, or liaison office in India that makes taxable supplies
• Supplies digital services (OIDAR) directly to Indian consumers without an Indian entity
• Imports goods into India for sale or distribution
• Sends employees to India to provide services at a client site (creating a taxable supply)
• Receives reverse-charge services from Indian vendors (the Indian entity receiving the service must register, but the US company's Indian presence triggers obligations)

The critical point: foreign companies have no threshold exemption. While Indian businesses get a turnover threshold of INR 40 lakh for goods and INR 20 lakh for services (lower thresholds of INR 20 lakh for goods and INR 10 lakh for services apply in special category states) before mandatory registration, foreign companies must register from rupee one if they are making taxable supplies in India.

Two Registration Pathways: Regular vs. NRTP

India's GST framework provides two distinct registration pathways for foreign companies, and choosing the right one depends on whether you have a permanent establishment in India.

Regular GST Registration (For Companies with Indian Presence)

If your US company operates through an Indian subsidiary, branch office, project office, or any fixed place of business in India, you register as a regular taxpayer. This is the same registration process that Indian companies follow.

Key features:

• No expiry date on registration
• Eligible to claim Input Tax Credit (ITC) on purchases
• Must file monthly/quarterly returns (GSTR-1, GSTR-3B)
• Annual return (GSTR-9) required
• Can issue tax invoices and collect GST from customers

Non-Resident Taxable Person (NRTP) Registration

If your US company does not have a fixed place of business in India but occasionally undertakes taxable transactions, you register as a Non-Resident Taxable Person using Form GST REG-09.

Key features:

• Registration valid for 90 days, extendable by another 90 days
• Must apply at least 5 days before commencing business in India
• Requires advance deposit of estimated tax liability for the registration period
• Must appoint an authorized representative in India
• Monthly return filing via Form GSTR-5 (due by 20th of following month)
• Cannot claim ITC on goods or services procured within India (with limited exceptions for goods imported and subsequently supplied)

GST Registration Process: Step by Step

For Regular Registration (Through Indian Entity)

If your US company has set up an Indian subsidiary or branch office, the GST registration is handled as part of the entity setup process. The SPICe+ incorporation form now includes automatic GSTIN allotment for new companies.

For existing entities that need to add GST registration:

1. Visit the GST portal (www.gst.gov.in) and click "New Registration"
2. Fill Part A: Provide PAN, mobile number, and email. Receive OTP verification on both.
3. Fill Part B using the TRN: Enter business details, principal place of business address, bank account details, and upload required documents.
4. Upload documents: PAN card, proof of business registration (Certificate of Incorporation), address proof for place of business (rent agreement or utility bill), bank account statement or cancelled cheque, authorized signatory's identity and address proof, board resolution authorizing GST application.
5. Digital signature: Submit with DSC of the authorized signatory or Aadhaar-based verification.
6. Receive GSTIN: Typically within 3-7 working days if documents are in order.

For NRTP Registration

The NRTP process has additional requirements reflecting the temporary nature of the registration:

1. Obtain PAN for the authorized Indian representative (mandatory prerequisite)
2. Register on the GST portal using Form GST REG-09
3. Submit required documents:
   • Valid passport of the applicant (self-attested)
   • Valid visa (if applicable)
   • Tax identification number from the US (EIN or SSN)
   • Certificate of incorporation or equivalent from the US
   • Proof of principal place of business in India (even if temporary)
   • Letter of appointment of the authorized signatory in India
   • Photograph of the applicant/authorized signatory
4. Pay advance tax deposit: Deposit an amount equal to the estimated GST liability for the registration period. This is paid via electronic cash ledger.
5. Receive temporary GSTIN: Processing typically takes 3-5 working days.

Understanding GST Rates and Structure

India overhauled its GST rate structure in September 2025 (GST 2.0 reforms), consolidating toward four main rates:

For most US companies operating in India, the applicable rate is 18% on services (IT, consulting, management, technical services) and varies by product for goods. The earlier 12% and 28% slabs have been largely merged into the 5% and 18% categories following the 56th GST Council meeting.

OIDAR Services: Special Rules for US Digital Companies

If your US company provides Online Information and Database Access or Retrieval (OIDAR) services to Indian consumers, special GST rules apply. OIDAR covers digital services delivered over the internet with minimal human intervention.

What Qualifies as OIDAR?

• SaaS platforms and cloud-based software
• Streaming services (video, music, gaming)
• Online advertising services
• E-learning platforms and digital courses
• Cloud storage and hosting services
• Digital downloads (e-books, apps, software)
• Online databases and information retrieval services

OIDAR Registration and Compliance

US companies providing OIDAR services to unregistered (non-business) persons in India must:

• Register under GST using Form GST REG-10, irrespective of turnover. There is no threshold exemption.
• Appoint a representative in India if the company has no physical presence. This representative handles GST compliance on the company's behalf.
• Charge and collect IGST at 18% on services provided to Indian consumers
• File monthly returns via Form GSTR-5A by the 20th of the following month

If the OIDAR services are provided to a registered business (B2B), the Indian recipient is liable to pay GST under the reverse charge mechanism, and the US company does not need separate OIDAR registration for those transactions.

Reverse Charge Mechanism: When Your Indian Customer Pays GST

Under the reverse charge mechanism (RCM), the recipient of services in India pays the GST instead of the foreign supplier. This applies when:

• A US company provides services to a registered Indian business
• The US company imports services from an associated enterprise in India
• Certain notified categories of services are received from any foreign supplier

In RCM scenarios, the Indian recipient must self-assess the GST, pay it to the government, and can then claim it as Input Tax Credit. The US company has no GST collection or payment obligation for these transactions.

This is important for US companies that only serve Indian businesses (B2B): you may not need your own GST registration if all your Indian supplies are covered under reverse charge. However, if you have even one unregistered (B2C) Indian customer, registration becomes mandatory.

Ongoing Compliance Obligations

Once registered, US companies must maintain rigorous GST compliance. Here is the monthly and annual calendar:

Penalties for Non-Compliance

• Late filing: INR 50 per day for CGST and INR 50 per day for SGST (total INR 100/day), subject to a maximum of INR 5,000 per return
• Non-registration: Penalty equal to the tax amount due or INR 10,000, whichever is higher
• Incorrect invoicing: INR 25,000 per invoice
• Interest on late payment: 18% per annum on outstanding tax

Place of Supply Rules: Determining Where GST Applies

For US companies, understanding India's place of supply rules is critical because they determine whether a transaction is taxable in India. Unlike US sales tax, which is based on nexus, India GST is based on where the supply is consumed.

For Services

• B2B (to registered Indian businesses): Place of supply is the location of the recipient. GST applies in India, typically under reverse charge (the Indian business pays).
• B2C (to unregistered Indian consumers): Place of supply is the location of the recipient for OIDAR services. The foreign supplier must register and pay GST.
• Services related to immovable property: Place of supply is where the property is located.
• Performance-based services: Place of supply is where the services are physically performed.

For Goods

• Imported goods: Place of supply is the location of the importer. Customs duty and IGST are charged at the port of entry. The IGST rate matches the GST rate applicable to the goods.
• Goods supplied through e-commerce: Place of supply is the delivery address of the customer in India.

A US company that provides consulting services remotely to an Indian registered business does not need GST registration for that transaction (reverse charge applies). But the same company providing a SaaS subscription directly to an Indian consumer must register and collect 18% IGST.

Input Tax Credit: Recovering GST Paid on Expenses

For US companies with regular GST registration through an Indian entity, the Input Tax Credit (ITC) mechanism is a significant cost-saving opportunity. ITC allows you to offset GST paid on business inputs (purchases, rent, professional services) against GST collected on your outputs (sales).

How ITC Works

If your Indian subsidiary collects INR 18,000 in GST on a INR 1,00,000 sale (18% rate), and paid INR 9,000 in GST on a INR 50,000 purchase (18% rate), you remit only INR 9,000 to the government (INR 18,000 minus INR 9,000 ITC). Without claiming ITC, you would pay the full INR 18,000.

Conditions for Claiming ITC

• The supplier must have filed their GST return reflecting the invoice
• You must have received the goods or services
• You must have paid the supplier (within 180 days)
• The goods/services must be used for business purposes
• You must file your GSTR-3B by the due date

NRTP registrants generally cannot claim ITC, which is one reason ongoing operations should transition to regular registration through an Indian entity.

Common Mistakes US Companies Make with India GST

1. Assuming US sales tax logic applies. India's GST is a destination-based consumption tax with input credit. It works nothing like US sales tax. Place of supply rules, not nexus, determine where GST applies.
2. Ignoring OIDAR obligations. Many US SaaS companies with Indian customers do not realize they must register and collect 18% GST on B2C sales. The Indian government has stepped up enforcement with data analytics to identify non-compliant foreign suppliers.
3. Not claiming Input Tax Credit. Regular registrants can offset GST paid on inputs against GST collected on outputs. Failure to claim ITC effectively inflates your tax cost by 18%.
4. Missing the inter-state vs. intra-state distinction. IGST applies to inter-state supplies (most relevant for foreign companies), while CGST+SGST applies to intra-state supplies. Getting this wrong affects your return filing.
5. Treating NRTP registration as permanent. NRTP registration expires after 90 days. If your India operations are ongoing, you need regular registration through an Indian entity, not rolling NRTP renewals.

For comprehensive GST compliance support including registration, return filing, and advisory, our tax advisory team works with US companies across all sectors. Also see our detailed guide on GST registration and compliance for foreign companies and 40 questions about GST for foreign companies.

E-Commerce and Marketplace Considerations

US companies selling through Indian e-commerce marketplaces (Amazon India, Flipkart, Meesho) face additional GST considerations. The marketplace operator is required to collect Tax Collected at Source (TCS) at 0.5% on the net value of taxable supplies made through the platform (reduced from 1% per the 53rd GST Council meeting).

If you are a foreign seller on an Indian marketplace:

• You must have GST registration before listing products
• The marketplace deducts 0.5% TCS, which you can claim as credit in your GST return
• You are responsible for charging the correct GST rate on your products
• The marketplace files GSTR-8 reflecting TCS collected from your sales

For US companies considering marketplace sales in India, setting up an Indian subsidiary with regular GST registration is typically more practical than attempting NRTP registration, given the ongoing nature of marketplace operations and the ITC benefits of regular registration.

Key Takeaways

• US companies making taxable supplies in India must register under GST with no turnover threshold exemption. Choose between regular registration (for companies with Indian presence) and NRTP registration (for temporary/occasional transactions).
• OIDAR (digital services) providers must register and collect 18% IGST on B2C sales to Indian consumers, regardless of turnover. B2B sales are typically covered under reverse charge.
• India simplified GST rates in September 2025 (GST 2.0) to four primary slabs: 0%, 5%, 18%, and 40%. Most services relevant to US companies (IT, consulting, software) are taxed at 18%.
• Regular registrants must file GSTR-1 and GSTR-3B monthly. NRTP and OIDAR registrants file GSTR-5 and GSTR-5A respectively. Late filing penalties are INR 100/day per return.
• NRTP registration is temporary (90 days, extendable to 180). If your India operations are ongoing, establish an Indian entity and obtain regular registration instead.