NR GST NUMBER

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies issues surrounding bills from non-resident (NR) companies that include GST numbers. It addresses whether GST should be charged by the vendor or if Reverse Charge Mechanism (RCM) applies, and discusses TDS implications. The validity and format of the provided GSTN numbers are questioned, and it's explained that RCM and TDS depend on the nature of services received in India. Ultimately, if services are provided by a non-resident to a registered person in India and are taxable, RCM likely applies, making the Indian company liable for GST.

Saurabh Bhatia

Saurabh Bhatia (Querist)
Follow

06 November 2024 Our company receives bills from outside India in foreign currency where NR mentions their GSTN No. 9924USA29014OSF/9920AUS29601OSG, GST portal showing status active but vendors not charging any GST amount.
Is this as per the GST act? Should we need to charge RCM for these services?
Does this vendor have Indian subsidy or registration in India?
if TDS needs to deduct on them how we collect their PAN number.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

06 November 2024 The GSTN numbers mentioned (9924USA29014OSF and 9920AUS29601OSG) seem to be in an incorrect format. Verify the vendor's GSTIN with the GST portal to confirm its validity in India.
Vendor may not have any subsidiary in India.
RCM under GST and TDS under IT act, depends upon nature of service received, if at all received in India.

Saurabh Bhatia

Saurabh Bhatia (Querist)
Follow

06 November 2024 with due respect 9924USA29014OSF and 9920AUS29601OSG relates to MIDJOURNEY INC and Envato Elements Pty Ltd. respectively (NR on GST portal) their effective date of registration are 23/02/24 and 08/12/20 respectively (as per GST PORTAL)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

06 November 2024 If the vendors are not charging GST, it's essential to determine whether the services provided are taxable in India. Under GST, services provided by a non-resident (outside India) to a recipient in India are taxable in India, unless specifically exempted or covered under the reverse charge mechanism.
RCM applies when:
The supplier is a non-resident
The recipient is a registered person in India
The services provided are not exempt or covered under specific notifications
If RCM applies, your company would be liable to pay GST on the reverse charge basis.
TDS is applicable on certain payments made to non-residents, as per the Income-tax Act, 1961.
To deduct TDS, you would need the vendor's PAN number. However, non-residents can apply for a PAN number in India.
Determine the nature of services provided and whether they're taxable in India.

Saurabh Bhatia

Saurabh Bhatia (Querist)
Follow

07 November 2024 thank you so much for your response.

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

07 November 2024 You are welcome.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now