Quick answer: Saudi companies must register for GST in India regardless of turnover, either through an Indian subsidiary (Regular Registration) or as an NRTP without a fixed presence — with a PE triggered by a fixed place of business, a construction project over 9 months, or services exceeding 183 days in 12 months. Because Saudi Arabia is not a Hague Apostille member, documents require the full embassy attestation route — Saudi Chamber of Commerce, Saudi MOFA, and Indian Embassy in Riyadh or Consulate in Jeddah — pushing the total timeline to 4-7 weeks. GST registration itself carries no government fee, though NRTP applicants must deposit an advance amount based on estimated turnover.
Key takeaways:
- GST registration is mandatory for taxable supplies in India regardless of turnover.
- PE triggers at 183+ days of services or construction projects over 9 months.
- Saudi Arabia isn't an Apostille member — documents need embassy attestation instead.
- Total timeline runs 4-7 weeks due to the multi-step attestation process.
- No government fee for GST registration; DTAA caps dividends at 5%.
GST Registration for Saudi Arabian Companies in India
Saudi Arabia and India share one of the most significant bilateral economic relationships in Asia. Bilateral trade reached US$ 41.88 billion in FY 2024-25, making Saudi Arabia India's 5th largest trade partner. Saudi Arabia has invested US$ 3.27 billion in cumulative FDI in India from April 2000 to March 2025, and in April 2025, the Kingdom reaffirmed its commitment to invest US$ 100 billion in India across startups, AI, space technology, biotech, and traditional sectors.
For Saudi companies establishing operations in India or supplying goods and services to the Indian market, GST registration is a non-negotiable legal requirement. India's Goods and Services Tax, implemented in July 2017, is a comprehensive indirect tax that subsumes multiple central and state taxes. Foreign companies, including those from Saudi Arabia, must register regardless of the turnover thresholds that apply to domestic Indian businesses.
How Saudi Arabia's DTAA Affects GST Registration
The India-Saudi Arabia DTAA, signed in 2006, establishes the framework for direct tax treatment of income flowing between the two countries. While GST is an indirect tax and not directly governed by the DTAA, several treaty provisions have a material impact on how Saudi companies structure their Indian operations and, consequently, their GST obligations.
PE Determination Under the DTAA
Article 5 of the India-Saudi Arabia DTAA defines when a Saudi company has a Permanent Establishment in India. If your Saudi company has a fixed place of business, a construction project lasting more than 9 months, or employees providing services in India for more than 183 days in any 12-month period, you are deemed to have a PE. This PE determination dictates whether you need regular GST registration or can use the NRTP route.
DTAA Rates and Cross-Border Transactions
The India-Saudi Arabia DTAA offers favourable withholding tax rates: 5% on dividends (the lowest among India's DTAAs), 10% on interest, and 10% on royalties. Unlike many of India's other treaties, the India-Saudi Arabia DTAA has no separate article for Fees for Technical Services (FTS) — a payment for technical services is either taxed as business profits under Article 7 (only if the Saudi company has a PE in India, at normal corporate rates on attributable profits) or, absent a PE, falls to the domestic withholding rate under s.115A, which is 20% (plus surcharge and cess) with effect from 1 April 2023. When a Saudi parent company charges management fees, technical service fees, or royalties to its Indian subsidiary, the Indian entity faces a dual tax obligation:
- Withholding tax at the applicable rate (10% DTAA rate on royalties; 20% domestic s.115A rate on FTS in the absence of a PE)
- GST at 18% on the same import of services under the reverse charge mechanism
The 5% dividend withholding rate is particularly beneficial for Saudi investment holding structures, as it reduces the cost of repatriating profits from Indian subsidiaries.
No Personal Income Tax in Saudi Arabia
A unique consideration for Saudi companies is that Saudi Arabia does not levy personal income tax on individuals. This means Saudi nationals serving as directors of Indian subsidiaries do not face home-country income tax on their director fees, though they remain liable for Indian withholding tax and must comply with Indian GST on any services rendered.
Document Requirements from Saudi Arabia
Saudi Arabia is not a member of the Hague Apostille Convention. Therefore, all Saudi corporate documents must follow the embassy attestation route, which involves attestation by the Saudi Ministry of Foreign Affairs (MOFA) followed by authentication from the Indian Embassy in Riyadh or the Indian Consulate in Jeddah.
Embassy Attestation Process
- Obtain the corporate document (in Arabic and/or English)
- Get the document attested by the Saudi Chamber of Commerce (for commercial documents)
- Submit to the Saudi Ministry of Foreign Affairs for attestation
- Submit the MOFA-attested document to the Indian Embassy in Riyadh or Indian Consulate in Jeddah for authentication
- If the document is in Arabic only, get it translated into English by a certified translator, with the translation also attested
Documents for Regular GST Registration
- Certificate of Registration (Sijil Tijaari) of the Saudi parent company (embassy attested)
- Commercial Registration extract from the Saudi Ministry of Commerce (embassy attested)
- Board resolution authorising India operations
- PAN card of the Indian subsidiary
- Certificate of Incorporation of the Indian entity
- Identity proof of all directors (Saudi Iqama or passport)
- 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
- Saudi Commercial Registration number of the entity (embassy attested)
- Authorisation letter appointing an Indian resident as authorised signatory with valid PAN
- Proof of advance GST deposit
Step-by-Step GST Registration Process
For Saudi Companies with an Indian Subsidiary
- Incorporate Indian Entity: Complete subsidiary incorporation and obtain PAN, TAN, and bank account
- Prepare Documents: Gather all Saudi corporate documents and complete the embassy attestation process
- Access GST Portal: Navigate to
reg.gst.gov.inand select 'New Registration' - Complete Part A: Enter PAN of Indian entity, mobile number, and email for OTP verification
- Complete Part B: Fill in business details, promoter/director information, authorised signatory details, principal place of business, and bank account
- Upload Documents: Attach all embassy-attested documents, PAN card, address proof
- Verification: GST officer verifies the application within 7 working days
- GSTIN Issuance: 15-digit GSTIN is assigned upon successful verification
For Saudi Companies as NRTP
- Appoint Indian Authorised Signatory: A resident Indian with a valid PAN
- Select NRTP Option: Choose Non-Resident Taxable Person registration type
- Calculate Advance Deposit: Estimate GST liability for the 90-day period
- Pay Advance GST: Deposit the estimated amount via electronic cash ledger
- Submit Application: Complete the form with passport details and upload embassy-attested documents
- Receive GSTIN: Typically processed within 3 working days
Timeline and Costs
Timeline from Saudi Arabia
| Stage | Duration |
|---|---|
| Document preparation in Saudi Arabia | 3-5 business days |
| Saudi Chamber of Commerce attestation | 1-3 business days |
| Saudi MOFA attestation | 2-5 business days |
| Indian Embassy authentication | 3-7 business days |
| Arabic to English certified translation (if needed) | 3-5 business days |
| GST application submission | 1-2 days |
| GST officer verification | 3-7 working days |
| Total estimated timeline | 4-7 weeks |
Cost Breakdown
| Item | Cost |
|---|---|
| Government fee for GST registration | NIL |
| Saudi Chamber of Commerce attestation | SAR 50-200 per document |
| Saudi MOFA attestation | SAR 30-100 per document |
| Indian Embassy authentication | SAR 50-100 per document |
| Certified translation (Arabic to English) | SAR 100-250 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 Saudi Arabian Companies
Embassy Attestation Delays
Unlike Apostille Convention members where authentication is straightforward, Saudi companies must navigate a multi-step attestation process. Delays at the Saudi MOFA or the Indian Embassy can add 1-2 weeks to the overall timeline. Planning the attestation process well in advance of the intended business commencement date is essential.
VAT-to-GST Transition
Saudi Arabia implemented its own Value Added Tax (VAT) at 15% in July 2020 (increased from the initial 5% rate). While Saudi VAT is a simpler, single-rate system, India's GST (following the GST 2.0 rate rationalization effective 22 September 2025) now operates on a simplified two main-slab structure of 5% and 18%, plus a 40% demerit rate for luxury and sin goods and a compensation cess on select items. Saudi companies must invest time in understanding GST rate classification, the distinction between CGST/SGST (intra-state) and IGST (inter-state), and the input tax credit mechanism.
Oil and Energy Sector Specifics
Many Saudi companies in India operate in the oil, gas, and energy sectors. Petroleum products (crude oil, natural gas, ATF, petrol, diesel) are currently outside the GST ambit and continue to be taxed under the pre-GST excise and VAT regime. Saudi energy companies must manage dual compliance: GST for non-petroleum products and services, and the old tax regime for petroleum.
Vision 2030 Diversification
Saudi Arabia's Vision 2030 is driving diversification away from oil dependency, with significant investments in technology, entertainment, tourism, and renewable energy. Saudi companies entering India in these newer sectors may find that GST classification for innovative products and services (e.g., entertainment technology, renewable energy equipment) is evolving and requires expert guidance.
Timezone and Coordination
Saudi Arabia is 2.5 hours behind India (IST is UTC+5:30, AST is UTC+3). This relatively close timezone facilitates real-time coordination with Indian tax authorities and advisors. However, the Saudi weekend (Friday-Saturday) differs from India's (Saturday-Sunday), reducing the overlapping working days to four per week.
Ongoing GST Compliance for Saudi Companies
GST registration marks the beginning of continuous compliance obligations. Saudi companies operating through Indian subsidiaries must adhere to a rigorous filing schedule to avoid penalties and maintain good standing.
Monthly Filing Requirements
GSTR-1 (details of all outward supplies) must be filed by the 11th of the following month. GSTR-3B (summary return with tax payment) is due by the 20th. Late filing attracts a penalty of INR 50 per day (INR 20 for nil returns) and interest at 18% per annum on any unpaid GST liability.
Reverse Charge Reporting
When the Indian subsidiary receives management services, technical consultancy, or royalties from the Saudi parent company, GST at 18% must be paid under the reverse charge mechanism and reported in GSTR-3B. The payment must be made in cash (not through input tax credit) at the time of filing. The ITC on this reverse charge GST is then available for set-off against output GST liability in subsequent months.
Annual Return and Audit
GSTR-9 (annual return) is due by December 31st. Subsidiaries with turnover exceeding INR 5 crore must also file GSTR-9C, a reconciliation statement certified by a Chartered Accountant, matching the audited financial statements with the GST returns filed during the year.
E-Invoicing
For businesses with aggregate turnover exceeding INR 5 crore, mandatory e-invoicing applies. Every B2B invoice must be registered with the Invoice Registration Portal (IRP) to obtain an Invoice Reference Number (IRN). Saudi companies in the energy sector dealing with high-value contracts should ensure their invoicing systems are integrated with the IRP to avoid disruptions.
Why Choose Beacon Filing
Beacon Filing has extensive experience working with Gulf-based companies expanding into India. We understand the embassy attestation requirements, the nuances of the India-Saudi Arabia DTAA, and the specific regulatory challenges faced by Saudi businesses. Our integrated services cover GST registration and compliance, FEMA compliance, corporate tax filing, and annual compliance.
For a complete overview of setting up business in India from Saudi Arabia, visit our Saudi Arabia country guide.