GST Registration for US Companies in India
American companies expanding into the Indian market must register under India's Goods and Services Tax (GST) regime before they can legally supply goods or services within the country. Unlike domestic firms that enjoy turnover-based exemptions (up to ₹40 lakh for goods or ₹20 lakh for services), foreign entities — including those from the USA — are generally required to register regardless of revenue thresholds.
With bilateral trade between India and the United States exceeding US $120 billion annually, thousands of American businesses already operate in India through subsidiaries, branch offices, and project offices. Whether you are a SaaS platform selling to Indian customers, a manufacturer setting up a warehouse, or a consulting firm providing technical services, obtaining a valid GSTIN is a critical early step in your India entry strategy.
This guide covers every aspect of GST registration that US companies need to know — from the type of registration that applies to your business model, to the DTAA considerations, document requirements, timeline, costs, and common pitfalls.
How the India-US DTAA Affects GST Registration
The India-US Double Taxation Avoidance Agreement (DTAA), in force since 1990, is often assumed to simplify all tax obligations for American companies operating in India. However, a critical distinction must be understood: the India-US DTAA covers only direct taxes (income tax, corporate tax, capital gains). It does not cover indirect taxes such as GST.
This means that treaty benefits — such as reduced withholding tax rates on dividends (15%), royalties (10–15%), or fees for technical services (15%) — cannot be applied to reduce GST liability. US companies must treat GST compliance as a completely separate obligation.
Permanent Establishment Risk
US companies should also be aware that having a Permanent Establishment (PE) in India — such as a fixed office, warehouse, or dependent agent — triggers not just income-tax obligations under the DTAA but also mandatory GST registration as a regular taxpayer. If your PE undertakes taxable supplies, you must register under GST independently of any DTAA relief.
Reverse Charge Mechanism
When a US company without an Indian PE provides services to an Indian business, the Indian recipient is often liable to pay GST under the Reverse Charge Mechanism (RCM). In such cases, the US company itself may not need GST registration. However, if the US company makes direct supplies to Indian consumers or has a fixed place of business in India, GST registration becomes mandatory.
Document Requirements from the USA
All US documents submitted for GST registration in India must be apostilled. Since both India and the USA are members of the Hague Apostille Convention, documents authenticated with an apostille from the US Secretary of State (or relevant state authority) are accepted without further embassy attestation.
Documents Required
- Certificate of Incorporation of the US entity (apostilled)
- Employer Identification Number (EIN) or equivalent tax ID issued by the IRS
- Board Resolution authorizing the person to apply for GST registration in India (apostilled)
- Passport and Visa of the authorized signatory (valid Indian business visa)
- PAN card of the authorized signatory or the 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
- Authorization letter or Power of Attorney for the Indian representative
Apostille Process
In the United States, apostille services are handled by the Secretary of State in the state where the document was issued. Federal documents (such as FBI background checks) are apostilled by the US Department of State. Processing typically takes 5–10 business days, though expedited services are available for an additional fee.
Step-by-Step GST Registration Process
The registration process differs based on whether your US company qualifies as a Non-Resident Taxable Person (NRTP) or needs regular GST registration through an Indian entity.
Option A: NRTP Registration (No Permanent Establishment)
- Apply at least 5 days before starting business — Submit Form GST REG-09 on the GST portal
- Provide required documents — Apostilled US company documents, passport of signatory, Indian address proof
- Deposit estimated GST liability — An advance deposit equivalent to the estimated tax liability for the registration period is mandatory
- Receive Temporary Reference Number (TRN) — Generated electronically upon deposit
- Complete Part B of the application — Upload supporting documents and sign with DSC
- GSTIN issued — Valid for 90 days (extendable by another 90 days)
Option B: Regular Registration (Indian Subsidiary/Branch)
- Obtain PAN for the Indian entity — DIN and Certificate of Incorporation must be in place
- Visit the GST portal and select "New Registration"
- Fill Part A — Enter PAN, mobile number, and email for OTP verification
- Complete Part B with business details — Principal place of business, bank details, authorized signatory information
- Upload documents — PAN, address proof, MoA, board resolution
- Sign and submit — Using DSC (mandatory for companies) or EVC
- GSTIN allotted within 3–7 working days — Under the GST 2.0 auto-approval system (effective November 2025), registration can be approved in as few as 3 working days
Timeline & Costs for US Companies
Timeline Breakdown
| Step | Duration |
|---|---|
| US document apostille | 5–10 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 | 3–6 weeks |
Cost Breakdown
| Item | Approximate Cost |
|---|---|
| Government GST registration fee | ₹0 (free) |
| Apostille charges (USA) | US $20–100 per document |
| Professional/CA fees | ₹5,000–₹15,000 |
| NRTP advance deposit | Equivalent to estimated GST liability |
| DSC procurement | ₹1,500–₹3,000 |
Note: The government does not charge any fee for GST registration itself. The primary costs are professional service charges and document authentication.
Common Challenges for US Companies
1. EIN vs PAN Confusion
US companies often assume their IRS-issued EIN will suffice for Indian tax registration. In reality, a separate Indian PAN (Permanent Account Number) must be obtained for the Indian entity or authorized signatory before applying for GST.
2. Indian Bank Account Requirement
GST registration requires a valid Indian bank account. US companies setting up fresh operations must open a bank account first — which itself requires certain incorporation documents. This creates a chicken-and-egg situation that an experienced India banking advisor can help resolve.
3. NRTP Advance Deposit
The mandatory advance deposit for NRTP registration catches many US companies off guard. The deposit must equal the estimated GST liability for the entire 90-day registration period, effectively tying up working capital.
4. Reverse Charge Complexity
When US companies provide services to Indian businesses without a PE, the Indian recipient pays GST under RCM. However, determining whether RCM applies — versus whether the US company needs its own GSTIN — requires careful analysis of supply classification and place-of-supply rules.
5. Monthly Compliance Burden
After registration, US companies must file monthly returns — GSTR-1 and GSTR-3B for regular registrations, or GSTR-5 for NRTPs. Missing deadlines attracts late fees of ₹50 per day (₹20 for nil returns) plus 18% interest on unpaid tax. Consider engaging a GST compliance service to stay on track.
Why Choose BeaconFiling
BeaconFiling specializes in helping American companies navigate India's regulatory landscape. Our team handles everything from document apostille coordination to GST portal submission, so you can focus on your core business. With dedicated support for FEMA/RBI compliance, corporate tax filing, and ongoing annual compliance, we provide end-to-end assistance for your India operations.
Frequently Asked Questions
Do US companies need GST registration even if they sell only to Indian businesses?
It depends on the supply structure. If the US company has no PE in India and provides services remotely, the Indian business recipient typically pays GST under the Reverse Charge Mechanism. However, if the US company has a fixed place of business in India or supplies goods directly, GST registration is mandatory regardless of turnover.
Can a US company apply for GST registration without an Indian subsidiary?
Yes. A US company can register as a Non-Resident Taxable Person (NRTP) without establishing a subsidiary or branch office. NRTP registration is valid for 90 days and requires an advance deposit equivalent to the estimated GST liability.
Does the India-US DTAA reduce my GST liability?
No. The India-US DTAA covers only direct taxes (income tax, capital gains, withholding tax). GST is an indirect tax and is not covered by any bilateral tax treaty. US companies must comply with GST obligations independently of DTAA benefits.
What GST rate applies to services provided by US companies in India?
Most professional and consulting services attract 18% GST. Software and SaaS services classified as OIDAR (Online Information and Database Access or Retrieval) also attract 18% GST. Certain essential goods may attract lower rates of 5% or 12%.
How long does GST registration take for a US company?
The total timeline is typically 3–6 weeks, including document apostille (5–10 days), PAN application (if needed, 7–15 days), and GST portal processing (3–7 working days). Under the GST 2.0 auto-approval system, portal processing can be as fast as 3 working days.
What happens if a US company operates in India without GST registration?
Operating without mandatory GST registration is an offence under Section 122 of the CGST Act. Penalties include a fine of ₹10,000 or the tax amount due — whichever is higher. Additionally, the company cannot issue tax invoices, claim input tax credit, or legally collect GST from customers.
Can the NRTP advance deposit be refunded?
Yes. Any unused balance from the advance deposit is refundable after the registration period ends, provided the NRTP has filed all required returns (GSTR-5) for the validity period. The refund is processed through the GST portal.