Quick answer: Israeli companies making taxable supplies in India must register for GST — through a permanent establishment (Regular registration, with GST officer review within 7 working days) or, for temporary engagements, as an NRTP valid 90 days and extendable once. The India-Israel DTAA sets a uniform 10% withholding rate on dividends, interest, royalties, and FTS, but GST is a separate 18% obligation that runs alongside it. The end-to-end process, including Israeli document apostille, takes about 3-5 weeks.
Key takeaways:
- GST registration is mandatory for any Israeli company supplying taxable goods or services in India.
- Regular registration suits companies with an Indian entity/PE; NRTP suits temporary engagements.
- NRTP registration is valid 90 days from registration, extendable once for another 90 days.
- India-Israel DTAA sets a uniform 10% withholding rate; GST is a separate 18% reverse-charge obligation.
- Total registration timeline is about 3-5 weeks; Israeli apostille processes in 1-5 business days.
GST Registration for Israeli Companies in India
India and Israel share a dynamic economic relationship that continues to deepen across technology, defence, agriculture, and pharmaceuticals. Bilateral trade stood at approximately US$ 3.75 billion in FY 2024-25, with India's exports at US$ 2.1 billion and imports from Israel at US$ 1.6 billion. Israeli companies have invested US$ 337.77 million in cumulative FDI in India, and this figure is set to grow significantly with the new Bilateral Investment Agreement signed in September 2025 (in force since July 2026) and ongoing Free Trade Agreement negotiations that commenced in February 2026.
For any Israeli company supplying taxable goods or services in India, GST registration is mandatory under the CGST Act 2017. Whether you are a Tel Aviv-based tech startup selling SaaS products to Indian customers, a defence contractor with a subsidiary in Bengaluru, or an agritech firm supplying equipment to Indian farmers, obtaining a GSTIN is your gateway to compliant business operations in India.
How Israel's DTAA Affects GST Registration
The India-Israel DTAA, in force since 1996, governs direct tax obligations between the two countries. While GST is an indirect tax and falls outside the DTAA's scope, the treaty's provisions on Permanent Establishment (PE) and income classification directly influence your GST registration strategy.
PE Determination and GST Category
If your Israeli company triggers a PE in India under Article 5 of the DTAA, you are treated as having a fixed place of business. This means you must obtain regular GST registration (not NRTP). Conversely, if your operations do not constitute a PE, you can register as a Non-Resident Taxable Person for temporary engagements or rely on the reverse charge mechanism where the Indian recipient self-assesses GST.
DTAA Rates and Their GST Impact
Under the India-Israel DTAA, the withholding tax rates are uniformly set at 10% for dividends, interest, royalties, and fees for technical services. When an Israeli parent company charges its Indian subsidiary for technology licensing, management services, or royalties, the Indian entity must:
- Withhold tax at 10% under the DTAA (plus applicable surcharge and cess)
- Pay GST at 18% on the same transaction under the reverse charge mechanism
- Claim input tax credit on the GST paid if the services are used for business purposes
Understanding this dual obligation is critical. The tax base for GST (value of supply) and the tax base for withholding tax (gross payment) may differ, and getting this wrong leads to compliance issues on both fronts.
Document Requirements from Israel
Israel has been party to the Hague Apostille Convention since 1978, making document authentication straightforward. All Israeli corporate documents must be apostilled by the Israeli Ministry of Foreign Affairs or the Registrars of the Magistrates' Courts.
Documents for Regular GST Registration (via Indian Subsidiary)
- Certificate of Incorporation of the Israeli parent company (apostilled)
- Company registration extract from the Israeli Companies Registrar (apostilled)
- Board resolution authorising India operations and appointing an authorised signatory
- PAN card of the Indian subsidiary
- Certificate of Incorporation of the Indian entity
- Identity and address proof of directors (Israeli passport or Teudat Zehut for Israeli directors)
- Proof of principal place of business in India
- Bank account details of the Indian entity
Documents for NRTP Registration
- Valid passport of the authorised signatory
- Israeli Tax Identification Number (Mispar Osek) of the entity (apostilled)
- Authorisation letter appointing an Indian resident with valid PAN as authorised signatory
- Proof of advance GST deposit
Documents in Hebrew must be translated into English by a certified translator, and the translation should also be apostilled. The Israeli Ministry of Foreign Affairs typically processes apostilles within 1-5 business days.
Step-by-Step GST Registration Process
For Israeli Companies with an Indian Entity
- Obtain PAN: Ensure your Indian subsidiary or branch office has a valid Permanent Account Number
- Prepare Documents: Gather and apostille all Israeli corporate documents; translate Hebrew documents
- Access GST Portal: Navigate to
reg.gst.gov.inand initiate a new registration - Complete Application: Fill in business details, promoter information, place of business details, and bank account information
- Upload Documents: Attach all apostilled documents, PAN card, address proof, and authorisation letters
- Aadhaar Authentication: The Indian authorised signatory completes Aadhaar-based authentication (or opts for physical verification)
- Verification: GST officer reviews the application within 7 working days
- GSTIN Issuance: A 15-digit GSTIN is issued upon successful verification
For Israeli Companies as NRTP
- Appoint Indian Authorised Signatory: Must be a resident Indian with a valid PAN
- Select NRTP Registration: Choose the Non-Resident Taxable Person option on the GST portal
- Estimate Turnover: Calculate expected taxable supplies for the 90-day period
- Make Advance GST Deposit: Pay the estimated GST liability into the electronic cash ledger
- Submit Application: Upload passport details, Israeli entity information, and apostilled documents
- Receive GSTIN: Typically processed within 3 working days
Timeline and Costs
Timeline from Israel
| Stage | Duration |
|---|---|
| Document preparation in Israel | 3-5 business days |
| Apostille from Israeli Ministry of Foreign Affairs | 1-5 business days |
| Hebrew to English certified translation | 3-5 business days |
| GST application submission | 1-2 days |
| GST officer verification | 3-7 working days |
| GSTIN issuance | 1-3 days |
| Total estimated timeline | 3-5 weeks |
Cost Breakdown
| Item | Cost |
|---|---|
| Government fee for GST registration | NIL |
| Apostille fee in Israel | ILS 36-72 per document |
| Certified translation (Hebrew to English) | ILS 150-300 per page |
| Professional service fee (CA/CS in India) | INR 5,000-15,000 |
| NRTP advance GST deposit | Based on estimated turnover |
Common Challenges for Israeli Companies
Technology Sector Complexity
Israeli companies are predominantly in the technology sector, particularly cybersecurity, AI, and SaaS. Determining whether a software product constitutes a 'good' or a 'service' under GST, whether OIDAR (Online Information and Database Access or Retrieval) provisions apply, and how to classify bundled offerings requires careful analysis. A cybersecurity platform sold as a subscription may attract 18% GST as a service, whereas packaged software delivered on media may attract a different rate.
Defence and Government Contracts
Israel's defence sector has significant contracts with the Indian government. Defence supplies may attract concessional GST rates or exemptions under specific notifications. Israeli defence companies must navigate both the defence FDI regulations and the GST exemption landscape simultaneously.
New BIA and FTA Implications
The Bilateral Investment Agreement signed in September 2025 and the FTA negotiations that began in February 2026 will reshape the trade and investment framework between India and Israel. While these agreements primarily affect customs duties and investment protections, they may lead to changes in how certain goods are classified and taxed under GST. Israeli businesses should stay updated on these evolving trade frameworks.
Timezone Advantage
Israel operates at UTC+2 (or UTC+3 during daylight saving), giving it only a 2-3.5 hour offset from India's IST (UTC+5:30). This is a significant advantage compared to companies in the Americas or Western Europe, as coordination with Indian tax authorities and advisors can happen during overlapping business hours.
Startup-to-Subsidiary Transition
Many Israeli startups initially sell to India through distributors or resellers and then transition to direct operations by establishing a subsidiary. This transition requires moving from an NRTP or reverse charge model to regular GST registration, transferring any existing customer contracts, and managing the compliance migration without interrupting business operations.
Ongoing GST Compliance for Israeli Companies
After obtaining GSTIN, Israeli companies must maintain continuous compliance with India's GST filing requirements. Non-compliance attracts late fees of INR 50 per day (INR 20 for nil returns) and interest at 18% per annum on outstanding GST liability.
Monthly Filing Obligations
Regular taxpayers file GSTR-1 (outward supply details) by the 11th of each month and GSTR-3B (summary return with tax payment) by the 20th. Israeli technology companies with multiple revenue streams (software licenses, SaaS subscriptions, implementation services, support contracts) must classify each supply correctly in GSTR-1 with the appropriate SAC (Services Accounting Code) or HSN code.
Annual Return
GSTR-9 (annual return) must be filed by December 31st. For subsidiaries with turnover exceeding INR 5 crore, GSTR-9C is mandatory. Since FY 2020-21 it is a self-certified reconciliation statement — the requirement for certification by a Chartered Accountant or Cost Accountant was removed when Section 35(5) of the CGST Act was omitted by the Finance Act 2021. This requires reconciling audited financial statements with GST returns filed during the year.
E-Invoicing Requirement
Businesses with aggregate turnover exceeding INR 5 crore must generate e-invoices through the Invoice Registration Portal. Each B2B invoice must receive an Invoice Reference Number (IRN) before it can be issued to the buyer. Israeli companies should integrate their billing systems with the IRP to ensure compliance and avoid manual bottlenecks.
Cross-Border Transaction Reporting
Imports of services from the Israeli parent company must be reported in GSTR-3B under the reverse charge section. The input tax credit on these transactions is available only after the GST is paid and reported in the return. Maintaining a clear trail from the Israeli parent's invoice to the Indian subsidiary's GST return is critical for audit readiness.
Why Choose Beacon Filing
Beacon Filing has deep experience serving Israeli companies entering the Indian market. We understand the technology-heavy nature of Israeli businesses and can advise on GST classification for complex software and service offerings. From GST registration and compliance to FEMA compliance, transfer pricing, and corporate tax filing, we provide integrated regulatory support tailored to Israeli companies.
Explore our complete guide for Israeli companies in India for a comprehensive overview of all regulatory requirements beyond GST.