By Sneha Iyer | Updated March 2026
What Is a Non-Resident Taxable Person (NRTP)?
A Non-Resident Taxable Person (NRTP) is defined under Section 2(77) of the Central Goods and Services Tax (CGST) Act, 2017 as any person who occasionally undertakes transactions involving the supply of goods or services or both — whether as principal, agent, or in any other capacity — but who has no fixed place of business or residence in India. The definition is precise: it captures foreign entities and individuals making taxable supplies within India without maintaining a permanent establishment or subsidiary in the country.
For foreign companies and investors, the NRTP classification matters because it triggers mandatory GST registration regardless of turnover thresholds. Unlike regular Indian businesses that can operate without GST registration below the INR 20 lakh aggregate turnover limit (INR 10 lakh for special category states), an NRTP must register before commencing any taxable activity in India. This applies to everything from exhibiting at an Indian trade fair to providing consulting services on Indian soil.
The NRTP framework under GST replaced the fragmented pre-2017 regime where foreign businesses supplying goods had to navigate separate central excise, service tax, and VAT registrations. Under GST, a single NRTP registration covers all taxable supplies across India, but comes with its own set of compliance obligations — including advance tax deposits and monthly return filing via GSTR-5.
Legal Basis
The statutory framework governing NRTPs is spread across several provisions of the CGST Act, 2017 and the CGST Rules, 2017:
- Section 2(77) of the CGST Act, 2017 — Defines "non-resident taxable person" as a person who occasionally undertakes transactions involving the 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.
- Section 24(v) of the CGST Act, 2017 — Lists NRTPs among the categories of persons who must obtain GST registration compulsorily, irrespective of the threshold limit under Section 22.
- Section 27 of the CGST Act, 2017 — Governs the special provisions for registration of casual taxable persons and NRTPs, including the requirement to apply at least 5 days before commencing business and the advance tax deposit obligation.
- Rule 13 of the CGST Rules, 2017 — Prescribes the procedure for NRTP registration, use of Form GST REG-09, and acceptance of passport as identification where PAN is unavailable.
- Section 39(5) of the CGST Act, 2017 — Requires NRTPs to file returns in Form GSTR-5 within 20 days after the end of each calendar month or within 7 days after the last day of the registration validity period, whichever is earlier.
How NRTP Registration Works
NRTP registration follows a distinct process compared to regular GST registration. The application is filed using Form GST REG-09 on the GST portal, and the process has several unique requirements:
Step-by-Step Registration Process
| Step | Action | Details |
|---|---|---|
| 1 | Appoint an authorized signatory | Must be a resident of India with a valid PAN. An authorization letter or board resolution is required. |
| 2 | Prepare documentation | Self-attested passport copy of the NRTP; tax identification number of the home country; PAN of the authorized signatory; proof of principal place of business in India (rent agreement + NOC if rented). |
| 3 | File Form GST REG-09 | Submit online on the GST portal (gst.gov.in). If the NRTP does not have a PAN, passport number serves as identification. |
| 4 | Deposit advance tax | Estimated GST liability for the entire registration period must be deposited upfront. The amount is credited to the Electronic Cash Ledger. |
| 5 | Receive GSTIN | Upon validation, a temporary reference number (TRN) is generated, followed by a GSTIN once approved. |
Advance Tax Deposit Calculation
The advance tax deposit is the most distinctive feature of NRTP registration. The applicant must estimate the total value of taxable supplies during the registration period (up to 90 days), apply the applicable GST rate, and deposit the full estimated liability upfront. For example, if a German engineering firm plans to supply INR 50 lakh worth of technical services at 18% GST over a 60-day registration period, the advance deposit would be INR 9 lakh.
This deposit is credited to the Electronic Cash Ledger and adjusted against actual tax liability when GSTR-5 is filed. Any excess is refundable after the registration period ends, subject to filing all returns.
Registration Validity and Renewal
NRTP registration is valid for the period specified in the application or 90 days from the effective date of registration, whichever is earlier. If the NRTP needs to continue operations beyond this period, an extension can be obtained by filing Form GST REG-11 before the registration expires. The extension is granted for a further period of up to 90 days, subject to an additional advance tax deposit covering the extended period.
NRTP vs. Casual Taxable Person (CTP): Key Differences
Foreign businesses often confuse the NRTP classification with the Casual Taxable Person (CTP) category. While both require mandatory registration and advance tax deposits, the distinctions are significant:
| Parameter | Non-Resident Taxable Person (NRTP) | Casual Taxable Person (CTP) |
|---|---|---|
| Definition | No fixed place of business or residence in India (Section 2(77)) | Has a place of business in India but occasionally supplies in a state/UT where they lack a fixed establishment (Section 2(20)) |
| Nationality | Typically a foreign entity or individual | Typically an Indian entity operating in a different state |
| Registration form | GST REG-09 | GST REG-01 |
| Return form | GSTR-5 | GSTR-1 and GSTR-3B |
| Input Tax Credit | Only on goods imported into India; no ITC on domestic procurement or import of services | Full ITC on all inward supplies during the registration period |
| Advance tax deposit | Required | Required |
| Validity | Up to 90 days, extendable by 90 days | Up to 90 days, extendable by 90 days |
| PAN requirement | Not mandatory (passport accepted) | PAN mandatory |
Return Filing: GSTR-5 Compliance
NRTPs file a dedicated monthly return in Form GSTR-5 rather than the standard GSTR-1/GSTR-3B combination. GSTR-5 is a consolidated return that captures outward supplies, inward supplies, and tax payments in a single form.
GSTR-5 Filing Details
| Aspect | Requirement |
|---|---|
| Filing frequency | Monthly |
| Due date | 13th of the month following the return period, OR within 7 days after the last day of registration validity — whichever is earlier |
| Late fee (regular return) | INR 50 per day (INR 25 CGST + INR 25 SGST), capped at INR 5,000 |
| Late fee (nil return) | INR 20 per day (INR 10 CGST + INR 10 SGST) |
| Interest on delayed tax | 18% per annum from the day after the due date |
| ITC eligibility | Only on goods imported by the NRTP into India |
The return must include details of all outward supplies made, inward supplies received, import of goods, and the tax paid or payable. Any advance tax deposited at the time of registration is adjusted against the actual liability reported in GSTR-5.
How This Affects Foreign Investors and Companies in India
The NRTP framework is directly relevant to foreign companies that make occasional taxable supplies in India without establishing a subsidiary, branch office, or liaison office. Common scenarios include:
- Trade fairs and exhibitions: A foreign manufacturer exhibiting and selling products at an Indian trade expo must register as an NRTP and collect GST on sales.
- Short-term project work: A foreign engineering firm providing on-site technical services in India for 2-3 months needs NRTP registration.
- Conference and event speakers: Foreign professionals providing paid speaking or training services in India may trigger NRTP obligations.
- Consulting engagements: Foreign consultants delivering taxable advisory services physically in India (not remotely from abroad — remote supply from outside India triggers reverse charge on the Indian recipient instead).
Foreign companies with a permanent presence in India — such as those registered under the Companies Act as a foreign company (FC-1) or operating through a private limited subsidiary — do not use the NRTP route. They register for GST as regular taxable persons under Section 22 or Section 24 (as applicable) using the standard Form GST REG-01.
It is also important to understand the interaction with FEMA regulations. NRTP registration does not create a permanent establishment for income tax or DTAA purposes by itself, but prolonged or repeated NRTP registrations could draw scrutiny from income tax authorities regarding whether a permanent establishment has been created.
Common Mistakes
- Failing to register before commencing supplies. Section 24(v) requires registration before the first taxable supply. Foreign exhibitors who start selling at an Indian trade fair on Day 1 and apply for NRTP registration on Day 3 face a penalty of 10% of tax due or INR 10,000, whichever is higher, plus 18% annual interest on the unregistered period's tax liability.
- Underestimating the advance tax deposit. The advance deposit must cover the entire estimated liability for the registration period. If actual supplies exceed the estimate, the NRTP must deposit the additional amount before the due date. Underestimation does not attract a separate penalty, but the shortfall plus 18% interest applies if tax remains unpaid by the GSTR-5 due date.
- Claiming ITC on domestic purchases. NRTPs can claim ITC only on goods they import into India. Local procurement of goods or services — hotel stays, local transport, venue rentals — does not qualify for ITC. This is a costly oversight, as the 18% GST on a INR 5 lakh venue rental becomes a pure cost with no credit recovery.
- Confusing NRTP registration with OIDAR (Online Information and Database Access) registration. Foreign companies providing digital services to non-taxable Indian consumers use Form GST REG-10 (not REG-09) and file GSTR-5A (not GSTR-5). Applying under the wrong category causes processing delays and compliance errors.
- Assuming NRTP registration creates a permanent establishment. NRTP registration is purely a GST mechanism. However, repeated 90-day registrations over consecutive periods can trigger a permanent establishment assessment under the Income Tax Act or the applicable DTAA. The threshold under most Indian DTAAs is 183 days of presence in any 12-month period.
Practical Example
Meridian Precision GmbH, a German industrial automation company, is invited to exhibit at an engineering trade fair in Mumbai. They plan to display equipment and take orders over 14 days, with expected on-site sales of INR 35 lakh (approximately EUR 38,000). Here is how their NRTP compliance unfolds:
Step 1 — Authorized signatory: Meridian appoints their Indian logistics partner's director (an Indian resident with a valid PAN) as the authorized signatory. A board resolution from Meridian's German headquarters authorizes this appointment.
Step 2 — Registration: The authorized signatory files Form GST REG-09 on the GST portal 10 days before the trade fair, uploading the passport of Meridian's managing director, the German trade register number, and proof of the exhibition venue (organizer confirmation letter).
Step 3 — Advance tax deposit: Meridian estimates INR 35 lakh in sales. The equipment falls under the 18% GST slab. Advance deposit = INR 35,00,000 x 18% = INR 6,30,000. This is deposited into the Electronic Cash Ledger via the GST portal.
Step 4 — Operations: During the 14-day trade fair, Meridian makes actual sales of INR 42 lakh — INR 7 lakh more than estimated. GST on actual sales = INR 42,00,000 x 18% = INR 7,56,000. The advance deposit of INR 6,30,000 covers most of this, but Meridian owes an additional INR 1,26,000.
Step 5 — GSTR-5 filing: Within 7 days after the registration validity expires, the authorized signatory files GSTR-5 reporting INR 42 lakh in outward supplies, pays the balance of INR 1,26,000, and closes the registration.
What if Meridian skipped NRTP registration? The tax authority could assess the full INR 7,56,000 in GST liability, add a penalty of INR 75,600 (10% of tax due), and charge 18% interest from the date of the first unregistered sale. Total exposure: approximately INR 8.5 lakh in tax, penalties, and interest — a 20% surcharge on top of the tax itself.
Key Takeaways
- An NRTP is any person who occasionally supplies goods or services in India without a fixed place of business — defined under Section 2(77) of the CGST Act, 2017.
- GST registration is mandatory under Section 24(v), regardless of turnover — the INR 20 lakh threshold does not apply to NRTPs.
- Registration is obtained via Form GST REG-09, requires an Indian-resident authorized signatory with a valid PAN, and demands an upfront advance tax deposit equal to the estimated GST liability.
- NRTP registration is valid for a maximum of 90 days, extendable by another 90 days via Form GST REG-11.
- Returns are filed in GSTR-5 (due by the 13th of the following month or 7 days after registration expiry, whichever is earlier), not GSTR-1/GSTR-3B.
- ITC is restricted to goods imported into India — no credit on domestic purchases, making local costs 18-28% more expensive for NRTPs than for resident taxpayers.
Planning a short-term business engagement in India without a local subsidiary? Beacon Filing provides end-to-end GST compliance for non-resident taxable persons, from NRTP registration and advance tax calculation to GSTR-5 filing and registration closure.