For foreign companies entering the Indian market, GST registration is an important part of establishing a compliant operating structure. The requirement, however, depends on how the foreign business intends to operate in India, whether through an Indian subsidiary, branch or other presence, as a non-resident taxable person, or by supplying certain digital services from outside India.
A key consideration for foreign companies establishing an Indian entity is the Permanent Account Number (PAN). PAN is generally required before an Indian entity can proceed with the standard GST registration process. This means that a foreign company planning to establish an Indian subsidiary will typically need to complete the incorporation and PAN process before applying for GST registration.
This makes GST registration an important part of the broader India market-entry process rather than a standalone tax registration.
Does a foreign company need GST registration in India?
GST registration in India is not mandatory for every business solely because it operates in India. The requirement depends primarily on the nature of the business, the type of supplies being made, turnover and the specific provisions applicable to the taxpayer.
For domestic businesses, GST registration is generally linked to prescribed turnover thresholds, subject to specified exceptions. However, certain categories are required to register irrespective of turnover.
For foreign businesses, GST registration requirements depend on the nature of their supplies, place of supply, and operating model in India. While certain foreign businesses supplying goods or services in India may be required to obtain GST registration, others may be subject to alternative compliance mechanisms, including the reverse charge mechanism applicable to eligible imports of services. Non-resident taxable persons making taxable supplies in India are generally subject to compulsory GST registration under the applicable provisions of the CGST Act.
The appropriate GST registration route should therefore be assessed alongside the proposed business structure, place of supply, nature of activities and tax position in India.
GST Registration for Domestic Companies: Turnover Threshold
For most businesses operating within India, GST registration is governed primarily by an annual aggregate turnover threshold. Under the current rules, a business supplying goods must register once its turnover crosses ₹40 lakh, while a business supplying services must register once it crosses ₹20 lakh, in most states. Certain special category states apply lower thresholds. Below these limits, registration is generally optional, meaning a small business can choose to remain unregistered unless it falls into one of the mandatory categories described below.
Turnover is calculated on an aggregate, all-India basis under a single PAN, rather than on a state-by-state basis. A business with operations spread across multiple states must therefore combine its turnover across all such states when determining whether the threshold has been crossed.
For foreign companies, however, the turnover threshold should not be considered in isolation. Certain categories of foreign businesses are required to register irrespective of the value of their supplies.
Categories Where GST Registration Is Mandatory Regardless of Turnover
Even businesses well below the turnover threshold are required to register under GST if they fall into any of the following categories:
- E-commerce operators and sellers transacting through e-commerce platforms
- Casual taxable persons undertaking occasional transactions in India
- Non-resident taxable persons (NRTPs) supplying goods or services in India
- Businesses required to deduct or collect tax at source under GST
- Persons making inter-state taxable supplies
- Agents supplying goods or services on behalf of another registered person
- Persons liable to pay tax under the reverse charge mechanism
- Suppliers of online information and database access or retrieval (OIDAR) services from outside India to unregistered recipients in India
For these categories, the ₹40 lakh and ₹20 lakh thresholds do not apply, and registration may be compulsory from the outset.
Why PAN Is Important for GST Registration
For a foreign company planning to establish an Indian subsidiary, obtaining PAN is an important step before GST registration.
The sequence generally works as follows:
Foreign parent company → Indian entity incorporation → PAN/TAN → GST registration → commencement of relevant business operations and ongoing compliance
The Indian company’s PAN is used as part of the GST registration process. Under the GST registration rules, applicants generally declare their PAN when applying through Form GST REG-01, and the PAN is validated against the income-tax database
This means that a foreign company cannot simply treat GST registration as the first step in setting up an Indian subsidiary. The underlying Indian entity and its tax registrations need to be established in the appropriate sequence.
This is particularly relevant for larger foreign businesses that intend to establish a long-term operating presence in India.
Does a Foreign Company Need PAN for GST Registration?
Not necessarily. The requirement depends on which GST registration route applies to the foreign business. A foreign company establishing an Indian subsidiary will generally obtain PAN for the Indian company and then proceed with regular GST registration.
A foreign business that qualifies as a Non-Resident Taxable Person (NRTP) follows a separate registration process. Under the GST rules, an NRTP applies using Form GST REG-09 and must have an authorised signatory who is resident in India and has a valid PAN.
Foreign digital businesses supplying Online Information and Database Access or Retrieval (OIDAR) services from outside India to non-taxable online recipients in India are subject to a specific GST registration and compliance mechanism under Section 14 of the IGST Act, 2017 and Rule 14 of the CGST Rules, 2017. Such suppliers are generally required to register under the simplified registration framework and discharge IGST on the applicable supplies.
Therefore, the PAN requirement should be assessed together with the nature of the foreign company’s presence and the applicable GST registration category.
GST registration requirement for foreign company
The requirements applicable to foreign businesses differ from those applicable to domestic entities. The applicable route depends on the nature of the foreign entity’s presence in India.
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GST Registration Requirement for Foreign Companies With an Indian Subsidiary
A foreign company may establish an Indian subsidiary or operate through another permitted form of presence, depending on its business model and regulatory requirements.
Where the business operates through an Indian entity, the Indian entity generally follows the regular GST registration framework. The process involves establishing the Indian entity, obtaining its PAN and then applying for GST registration where applicable.
The GST registration process also needs to be considered on a state-by-state basis, as GST registrations are generally linked to the relevant State or Union Territory.
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GST Registration requirements for Non-Resident Taxable Persons (NRTP)
A foreign business or individual that occasionally undertakes transactions involving the supply of goods or services in India, without having a fixed place of business or residence in India, may fall within the definition of a Non-Resident Taxable Person.
NRTPs must apply for GST registration before commencing taxable supplies. The application is made through Form GST REG-09 and requires an Indian resident authorised signatory with a valid PAN. An advance deposit of estimated tax liability is also required.
An NRTP registration is generally valid for the period specified in the application or 90 days from the effective date of registration, whichever is earlier, and may be extended by a further period of up to 90 days.
This route can therefore be relevant for foreign businesses undertaking limited or temporary taxable activities in India without establishing a permanent operating structure.
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OIDAR GST Registration requirement for Foreign Digital Service providers
Foreign companies that supply digital services to Indian consumers electronically may fall within the OIDAR framework
Examples may include:
- Cloud-based software and digital services
- Online advertising
- Data and information services
- Streaming and similar digital content
- Certain digital marketplace services
Foreign OIDAR suppliers providing services from outside India to non-taxable online recipients in India are subject to a specific GST registration mechanism. The GST rules provide for registration through Form GST REG-09A for such suppliers.
For technology and digital businesses, determining whether the service falls within the OIDAR framework is therefore an important part of the GST assessment.
How to Apply for GST Registration as a Foreign Company
The registration process will depend on the structure through which the foreign business operates.
Step 1: Determine the Indian Operating Structure
Before applying for GST registration, the foreign company should establish how it intends to conduct business in India.
This could involve:
- An Indian private limited company or subsidiary
- A branch office or other permitted establishment
- A temporary or occasional presence qualifying as an NRTP
- Cross-border digital supplies falling within the OIDAR framework
The appropriate GST route follows from this assessment.
Step 2: Obtain PAN Where Required
For an Indian subsidiary, the company incorporation process is followed by obtaining the relevant tax registrations, including PAN.
The PAN becomes an important identifier for the subsequent GST registration application.
Step 3: Identify the GST Registration Requirement
The business should determine:
- Whether its supplies are taxable
- Whether the applicable turnover threshold has been crossed
- Whether it falls within a category requiring compulsory registration
- The relevant State or Union Territory
- Whether it is operating as a regular taxpayer, NRTP or OIDAR supplier
This assessment is particularly important for foreign businesses because the applicable requirements may differ significantly depending on the operating model.
Step 4: Gather documents required for Foreign Company GST Registration
Foreign companies must prepare specific documents to support their GST registration application in India. The following sections outline the essential documentation requirements and supporting documents based on the company’s structure and business activities.
Step 5: Submit the GST Application
Regular GST registration is generally completed online through Form GST REG-01 on the GST portal. The application requires the relevant entity, PAN, contact, business and authorised signatory details.
NRTPs follow the separate Form GST REG-09 process, while specified OIDAR suppliers use the applicable registration mechanism under the GST rules.
Step 6: Obtain the GSTIN
Once the application is approved, the business receives a 15-digit Goods and Services Tax Identification Number (GSTIN).
The GSTIN must be quoted on tax invoices, GST returns and other applicable statutory records.
However, registration is only the first step. After obtaining GST registration, businesses must maintain accurate transaction records, issue compliant invoices, file periodic GST returns such as GSTR-1 for outward supplies and GSTR-3B as a summary return, and pay the applicable tax within statutory timelines.
Documents Required for Foreign Company GST Registration
The exact documentation will depend on the structure and GST category. For an Indian subsidiary, the documentation may include:
- Corporate documents
- Certificate of incorporation
- Constitutional documents
- PAN of the Indian entity
- Details of directors
- Address and operational documents
- Proof of registered office
- Proof of business activities
- Bank account detail
- Authorisation documents
- Board resolution
- Authorisation letter
- Details and identification documents of the authorised signatory
- Foreign parent company documents
- Constitutional documents of the foreign parent, where applicable
- Authorisation documents
- Relevant tax or corporate documents, depending on the structure
Foreign documents may also need to meet applicable notarisation, apostille or consularisation requirements, depending on the document and the incorporation/registration process involved.
GST Compliance After Registration
Obtaining a GSTIN does not complete the company’s GST obligations.
A registered business must generally:
- Issue GST-compliant tax invoices
- Maintain appropriate books and transaction records
- File applicable GST returns
- Pay GST within the prescribed timelines
- Reconcile relevant transaction and tax records
- Maintain supporting documentation for input tax credit claims
- Comply with applicable e-invoicing and other GST requirements, where applicable
For a foreign-owned Indian business, these obligations should be integrated into the company’s wider accounting, tax and compliance framework.
GST Registration for Foreign Companies: Key Takeaways
For a foreign company entering India, GST registration should be considered as part of the overall India entry and tax structuring exercise.
The key considerations are:
- Determine the proposed Indian operating structure first.
- Obtain PAN for the Indian entity where a regular Indian entity is being established.
- Assess whether GST registration is mandatory based on the nature of supplies and applicable GST provisions.
- Identify the appropriate route—regular GST registration, NRTP or OIDAR, as applicable.
- Prepare corporate, tax, address and authorised-signatory documentation.
- Complete the applicable GST registration process before commencing taxable activities where registration is mandatory.
- Establish ongoing GST compliance processes after obtaining the GSTIN.
For foreign companies planning a long-term presence in India, GST registration should not be viewed in isolation. The choice of entity, PAN, GST, corporate tax, transfer pricing, foreign investment and ongoing compliance requirements can all interact with one another.
FAQs on GST Registration for Foreign Companies in India
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Is GST registration mandatory for foreign companies in India?
GST registration is not automatically mandatory for every foreign company operating in India. The requirement depends on factors such as the nature of supplies, place of supply, business structure and the applicable GST provisions. Certain categories, including Non-Resident Taxable Persons and specified foreign digital service providers, may be required to register irrespective of turnover.
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Can a foreign company obtain GST registration in India?
Yes. A foreign company may obtain GST registration in India depending on how it operates in the country. A foreign business operating through an Indian subsidiary generally follows the regular GST registration process, while a Non-Resident Taxable Person or an OIDAR service provider may follow a separate registration mechanism.
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Does a foreign company need PAN for GST registration in India?
The PAN requirement depends on the applicable GST registration route. An Indian subsidiary will generally obtain its own PAN before applying for regular GST registration. A Non-Resident Taxable Person follows a separate registration process and must appoint an authorised signatory resident in India with a valid PAN.
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Can a foreign company register for GST without establishing an Indian subsidiary?
Yes, in certain circumstances. A foreign company undertaking temporary or occasional taxable supplies in India without a fixed place of business may qualify as a Non-Resident Taxable Person. Foreign businesses providing specified digital services may also fall under the OIDAR GST framework.
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What documents are required for foreign company GST registration in India?
Depending on the business structure and GST category, documents may include the certificate of incorporation, PAN, constitutional documents, details of directors or authorised signatories, registered office proof, bank details, board resolutions, authorisation documents and relevant documents of the foreign parent company.
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What is the GST registration process for a foreign company in India?
The process generally begins with determining the appropriate Indian operating structure. The business must then assess whether GST registration is required, obtain PAN where applicable, identify the relevant State or Union Territory, prepare the required documents and submit the appropriate GST registration application.
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Is there a turnover threshold for GST registration of foreign companies in India?
Turnover thresholds apply to many domestic businesses, but they should not be considered in isolation for foreign companies. Certain categories, including Non-Resident Taxable Persons and specified foreign suppliers, may be required to register regardless of turnover.
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Do foreign SaaS and digital service companies need GST registration in India?
Foreign SaaS, cloud software and other digital service providers may fall within the OIDAR framework depending on the nature of the services provided and the type of recipient in India. The applicability of GST registration should therefore be assessed based on the specific service and operating model.
