Quick answer: Indonesian companies must register for GST before making any taxable supply in India, regardless of turnover. Companies without a permanent establishment register as NRTP (Form GST REG-09) for 90 days, extendable once, while those with an Indian entity require Regular registration. Document apostille through Kemenkumham (Indonesia joined the Hague Apostille Convention in 2022) takes just 3-5 business days, and the total process runs about 3-5 weeks.
Key takeaways:
- No turnover threshold — GST registration is mandatory before any taxable supply in India.
- NRTP registration (Form GST REG-09) lasts 90 days, extendable once for another 90 days.
- Indonesia joined the Hague Apostille Convention in 2022; Kemenkumham apostille takes 3-5 days.
- India-Indonesia DTAA sets a 10% withholding rate on dividends, interest, royalties, and fees for technical services (Article 12 covers FTS; the domestic rate without the treaty is 20%).
- Total registration timeline is about 3-5 weeks; apostille costs roughly IDR 150,000 per document.
GST Registration for Indonesian Companies in India
India and Indonesia are two of Asia's largest economies, with bilateral trade reaching a record US $28.16 billion in FY25. Indonesia has emerged as the third-largest export and largest import trading partner of India in the ASEAN region. Indonesian companies across energy, infrastructure, metals, palm oil, and manufacturing have established operations in India, while Indian companies are equally active in Indonesia. Indonesia stands at the 37th position in foreign direct investment (FDI) equity inflows into India with cumulative FDI of US $659.30 million from April 2000 to March 2025.
For every Indonesian company conducting taxable business in India — whether through a Wholly Owned Subsidiary (WOS), Branch Office, Liaison Office, or project-based engagement — obtaining GST registration is a mandatory prerequisite before making taxable supplies. Unlike domestic Indian businesses that enjoy turnover-based exemptions (INR 40 lakh for goods, INR 20 lakh for services), foreign entities from Indonesia are generally required to register for GST regardless of revenue.
This guide covers the complete GST registration process for Indonesian companies, including how the India-Indonesia DTAA and AIFTA interact with GST, the specific documents needed and the apostille process through Kemenkumham, timelines, costs, and compliance challenges unique to Indonesian businesses in India.
How Indonesia's DTAA Affects GST Registration
The India-Indonesia DTAA governs the taxation of cross-border income between the two countries, providing standardized withholding tax rates that are lower than India's domestic rates. This makes the treaty important for structuring intercompany transactions efficiently.
However, the DTAA applies exclusively to direct taxes (income tax, corporate tax). GST, being an indirect consumption tax, falls entirely outside the treaty's scope. Indonesian companies cannot use DTAA provisions to reduce or defer their Indian GST liability.
Key DTAA Rates (Income Tax Only)
- Dividends (Article 10): 10% withholding — lower than India's domestic rate of 20%
- Interest (Article 11): 10% withholding on interest payments between the two countries
- Royalties (Article 12): 10% withholding on royalty payments, including technology licensing
- Fees for Technical Services (Article 12): 10% withholding — the 2012 treaty covers managerial, technical and consultancy services within Article 12, halving the domestic s.115A withholding rate of 20%
- Permanent Establishment (PE): A fixed place of business, building site exceeding 183 days, or dependent agent in India can create a PE for the Indonesian entity, triggering full income tax and mandatory GST registration
To claim these DTAA benefits, Indonesian companies must obtain a Certificate of Domicile (Surat Keterangan Domisili/SKD) from the Indonesian Directorate General of Taxes (DJP) and file Form 10F with Indian tax authorities. These DTAA benefits apply to direct tax only — GST obligations exist independently.
AIFTA and the India-Indonesia Economic Dialogue
The ASEAN-India Free Trade Agreement (AIFTA), effective since 2010, provides preferential tariff rates on goods traded between Indonesia and India. The newly established India-Indonesia Economic and Financial Dialogue further aims to strengthen bilateral investment, financial services, and infrastructure cooperation. While these agreements benefit trade in goods, they do not modify domestic GST rates or registration requirements. GST compliance in India remains governed entirely by the CGST and SGST Acts.
Document Requirements from Indonesia
Indonesia joined the Hague Apostille Convention in 2022, making document authentication significantly simpler. Indonesian documents can be apostilled through the Ministry of Law and Human Rights (Kemenkumham), which is the designated Competent Authority for issuing apostilles in Indonesia. This is faster and more cost-effective than the embassy attestation route previously required.
Documents Required
- Akta Pendirian (Deed of Establishment) — Notarized deed of company establishment from an Indonesian notary (apostilled via Kemenkumham)
- NIB (Nomor Induk Berusaha) — Business Identification Number from OSS (Online Single Submission) system
- NPWP (Nomor Pokok Wajib Pajak) — Tax Identification Number of the Indonesian company
- Board Resolution authorizing GST registration in India (notarized and apostilled)
- Passport and Indian business visa of the authorized signatory
- PAN card of the authorized signatory or Indian entity
- Proof of Indian business address — rental agreement, utility bill, or property tax receipt
- Indian bank account details — cancelled cheque or recent bank statement
- Photographs of the authorized signatory
- Certificate of Domicile (SKD) from DJP — required for DTAA benefits, often requested as supporting documentation
Apostille Process in Indonesia
The Ministry of Law and Human Rights (Kemenkumham) issues apostilles for Indonesian public documents. The process can be initiated online, and processing typically takes 3-5 business days. The fee is IDR 150,000 (approximately INR 800) per document, making it one of the most affordable apostille services globally. Documents must first be notarized by an Indonesian notary before apostille application. For a comparison of authentication methods, see Apostille vs. Embassy Attestation.
Step-by-Step GST Registration Process
Option A: NRTP Registration (No Indian Entity)
If an Indonesian company wants to make taxable supplies in India without establishing a permanent entity, it can register as a Non-Resident Taxable Person (NRTP):
- Apply at least 5 days before starting business — Submit Form GST REG-09 on the GST portal
- Appoint an authorized signatory — Must be a resident Indian with a valid PAN and Indian mobile number
- Submit apostilled Indonesian documents — Akta Pendirian, board resolution, signatory passport
- Pay the mandatory advance deposit — Amount equal to estimated GST liability for the 90-day registration period
- Receive Temporary Reference Number (TRN) — Generated automatically after payment confirmation
- Complete Part B — Upload supporting documents, provide Indian address, sign with DSC
- GSTIN issued — Valid for 90 days, extendable once for another 90 days
Option B: Regular Registration (Via Indian Subsidiary or Branch)
- Establish the Indian entity — Obtain Certificate of Incorporation and PAN from MCA
- Access the GST portal — Navigate to Services, then Registration, then New Registration
- Complete Part A — Enter PAN, email, and mobile number for OTP verification
- Complete Part B — Business details, principal place of business, bank account, authorized signatory
- Upload documents — PAN, address proof, MoA, board resolution, apostilled Akta Pendirian
- Submit with DSC — Digital Signature Certificate is mandatory for companies
- GSTIN allotted in 3-7 working days — Under GST 2.0, auto-approval can process applications in 3 days
Timeline and Costs for Indonesian Companies
Timeline Breakdown
| Step | Duration |
|---|---|
| Indonesian document apostille (Kemenkumham) | 3-5 business days |
| Indian PAN application (if needed) | 7-15 business days |
| GST application preparation | 2-3 business days |
| GST portal processing | 3-7 working days |
| Total estimated timeline | 3-5 weeks |
Cost Breakdown
| Item | Approximate Cost |
|---|---|
| Government GST registration fee | INR 0 (free) |
| Apostille charges (Kemenkumham) | IDR 150,000 per document (~INR 800) |
| Notarization in Indonesia | IDR 500,000-2,000,000 per document |
| Professional/CA fees in India | INR 5,000-15,000 |
| NRTP advance deposit | Equivalent to estimated GST liability |
| DSC procurement | INR 1,500-3,000 |
Common Challenges for Indonesian Companies
1. Indonesia's PPN (VAT) vs India's GST — Both Complex but Different
Indonesia operates a VAT system called PPN (Pajak Pertambahan Nilai) which was increased from 11% to an effective rate of 12% in January 2025, with the full 12% rate applying only to luxury goods and services. India's GST uses a simplified two-slab structure of 5% and 18% (plus a 40% demerit rate for luxury/sin goods, following the GST 2.0 rate rationalization effective 22 September 2025) with the split between CGST, SGST, and IGST. While both systems are consumption-based indirect taxes, the key differences lie in India's state-wise registration requirements, monthly filing deadlines, e-invoicing mandates, and complex input tax credit reconciliation. Indonesian companies familiar with their PPN system must adapt to India's more granular compliance framework.
2. Rupiah-Rupee Currency Complications
Both Indonesia and India use currencies called "Rupiah" and "Rupee" respectively, which can create confusion in financial documentation and invoicing. Indian customs uses the exchange rate notified by the CBIC (Central Board of Indirect Taxes and Customs) on the date of filing the Bill of Entry, which may differ from the commercial exchange rate used in intercompany invoicing. Clear currency denomination and consistent exchange rate documentation are essential to avoid GST valuation disputes.
3. AIFTA Certificate of Origin Requirements
To claim AIFTA tariff concessions on goods imported from Indonesia to India, a Certificate of Origin (Form AI) issued by the Indonesian Ministry of Trade is required. The absence of this certificate means customs duties are charged at the standard MFN rate. Importantly, even with valid AIFTA certificates, IGST is charged separately and is not reduced by the tariff concession — only the basic customs duty is affected.
4. Multiple GSTIN Requirements Across States
If an Indonesian company operates across multiple Indian states — common for palm oil trading companies and infrastructure firms — a separate GSTIN is required for each state. Each state registration demands its own monthly GSTR-1/3B filing, multiplying the compliance burden. Centralized registration is not available; each state must be handled independently.
5. E-Invoicing Threshold Compliance
Indian companies (including foreign subsidiaries) with annual turnover exceeding INR 5 crore must comply with e-invoicing requirements. This involves generating Invoice Reference Numbers (IRN) through the Invoice Registration Portal before issuing B2B invoices. Indonesian companies with Indian subsidiaries approaching this threshold must implement e-invoicing systems proactively to avoid compliance disruption.
Why Choose Beacon Filing
Beacon Filing has strong experience supporting Indonesian companies navigating India's GST and compliance landscape. We handle everything from apostille coordination with Kemenkumham to GST portal submission, ongoing GST return filing, and FEMA/RBI compliance. Our services also include transfer pricing documentation and annual compliance management, giving your Indonesian team complete peace of mind for Indian operations. Visit our Indonesia country page for more on establishing operations in India from Indonesia.