Goods and Services Tax is a comprehensive tax on the supply of goods and services within India. It came into effect in July 2017 and has turned a new leaf in the taxation system in the country since it has proved to be so streamlined and effective. Thus, any foreign company that desires to establish its presence in India, more so in the dynamic business cities like Lucknow, has to compulsorily get itself registered under GST. The guide throws light on the necessity of GST registration of foreign companies in Lucknow. The illustration also covers the step-by-step process for successful registration.
GST means goods and service tax, which is an indirect tax that has replaced many of the indirect taxes that were in effect previously in India. Under GST, a foreign company must get itself compulsorily registered if it conducts any taxable supply of goods or services in India. The procedures involved in registration under GST ensure compliance with the taxation laws of India and provide an avenue for doing business seamlessly. Business enterprises from abroad can collect and remit their taxes, claim input tax credit, and conduct business without any legal and legitimate as well as transparent transactions.
Lucknow is the capital of Uttar Pradesh and is taking on an important role in the business world. Due to its rich cultural heritage and effort to develop its economy, it attracts many foreign investments. Several reasons exist as to why foreign companies need to have their GST registration done in Lucknow. These include:
Geographical Location: Located strategically in North India, Lucknow forms a gateway to all business activities across the region.
Expanding Market: A burgeoning city economy offers numerous opportunities in the fields of manufacturing, IT, healthcare, and so many more to foreign companies.
Ease of Doing Business: The infrastructure and government policies here offer an excellent environment for any business to thrive, making it one of the most preferred destinations for foreign investments.
In essence, the procedure for GST registration of foreign companies involves several steps. The step-by-step guide that will help you go through the process is as follows:
Step 1: Collection of Necessary Documents
Foreign companies have to collect and furnish the following documents for the purpose of registration under GST.
Certificate of Incorporation issued by the foreign authority.
Proof of the registered office address in India of the company.
PAN card of the company. This is mandatory for registration.
Passport and photograph of the authorized signatory of the company.
Bank account details in India.
Step 2: Filing of the GST Application
The application for GST shall, thereafter, be filed online on the GST portal: www.gst.gov.in. In the case of foreign companies, Form GST REG-01 has to be filled and submitted along with the documents as specified under the mentioned form.
Step 3: Verification and Approval
After verification by the GST authorities, they may require further information or documents if needed. The authorities will approve the application upon the completion of verification.
Step 4: Get the GSTIN
A unique GST Identification Number shall be issued to the foreign company after approval. It consists of 15 digits and shall be used in all transactions and filing under GST.
Common Challenges and How to Overcome Them
Language Barrier: All documents are to be translated into English or Hindi.
Document Verification: All documents should be checked properly for any error or omission in the document to avoid delay.
To make it easier to complete the registration process, the following is a comprehensive list of the required documents:
Certificate of Incorporation: Company incorporation proof.
Proof of Registered Office Address: Utility bill, lease agreement, or any other proof showing the location of the office of the company in India.
PAN Card: Permanent Account Number card issued by the Indian Income Tax Department.
Passport and Photograph: Of the authorized signatory of the company.
Bank Account Details: Statement or cancelled cheque of the bank account of the company in India.
The various benefits of registering for GST for foreign companies are:
Tax Benefits: The Company would collect GST on supplies and subsequently claim input tax credits, reducing the aggregate tax liability.
Business Credibility: More trust and credibility are derived from customers and business associates alike.
Smoother Business Operations: Smooth business transactions and compliance with Indian taxation are easily facilitated.
After obtaining registration, foreign companies have to comply with the regular filing requirements under GST. For instance:
Monthly/Quarterly Returns: GSTR-1, GSTR-3B, and other relevant returns would have to be filed by foreign companies, based on the turnover.
Annual Return: The filing of GSTR-9 is mandatory in the case of all registered companies.
Penalties for Non-Compliance: There are penalties, interest, and legal problems for not filing the GST. It should, therefore, be ensured that the filing is done timely with proper maintenance of records.
Tips on How to Stay Compliant
Automate GST Filings: Set up accounting software that is compliant with GST to facilitate automation and smoothening of the process.
Internal Audit: Carry out an internal audit on a periodic basis to ensure that all transactions are correctly recorded and reported.
At My Startup Solution, we realize how complicated it gets to execute the process of registration under GST by foreign companies. Our expert team extends all necessary help in making the registration process hassle-free. Here's how we can help:
Expert Guidance: Our experienced professionals guide you at each step of the procedure of registration under GST.
Document Preparation: We assist in collecting, verifying, and submitting all requisite documents.
Ongoing Support: We also offer continuous support for GST filings and compliance post-registration.
The most important step that a foreign company intending to operate in Lucknow must take is GST registration. It helps you to comply with the Indian taxation law, have smooth business transactions, and enhance business credibility. We at My Startup Solution set the trend in providing expert assistance so as to make the registration process seamless and efficient.
Contact us today at info@mystartupsolution.in or call +91 7081220800 to get started with your GST registration in Lucknow.
The following documents need to be furnished for getting GST registration in Lucknow by foreign companies: a Certificate of Incorporation, proof related to the registered office address in India, a PAN card, a passport and photograph of the authorized signatory, and bank account details opened in India.
In normal course, the registration process under GST takes about 7-10 working days, provided that all documents furnished are correct and complete. Further information or verification may delay the process.
Yes, such foreign company can obtain registration under GST without having physical office in Lucknow by appointing Indian Representative, who would provide required address and document verification.
After GST registration, a foreign company is required to file monthly or quarterly GST returns, an annual return, and on-time payment of GST. In case of failure in compliance with the aforesaid provisions, penalties will be charged and other legal repercussions levied.
My Startup Solution assists foreign companies in Lucknow throughout the entire process of GST registration with expert advice, preparation of documents, and also in their further support to make it easier and headache-free. Contact us at info@mystartupsolution.in or +91 7081220800.
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