• July 1, 2017 GST - non-resident foreign taxable persons

Hi,

We are a corporation located in Canada and we are doing business in India in two different ways:

1.  An end-user customer located in India will purchase content from our website, we then outsource the printing of the content to a subcontractor in India who in turn prints the content and ships it to the end user located in India.  

2.  An end-user customer located in India will purchase digitally delivered content from our website.

It should be noted that we do not have a PAN and would prefer not to apply for a PAN if necessary.

In the two scenarios above, what is the Canada Company's responsibility related to the new GST rules?

Thank you.
Asked 6 years ago in GST

If Canada corporation does not have permanent establishment (PE) in India, it need not to do GST related compliances.

Please feel free to call/ revert in case you need more clarity

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hii

In your queries

1 if your buyers are business entities means registered under gst then they have to pay GST under RCM on contents purchased from your website as import of services

To whom you subcontract printing work

For printer it's export

For buyer it's import

Coz printer done work on instructions on you thus it's bill to ship to concept and place of supply is out of India

And if your customers are non registered then you have to appoint a person in respective state(s) and have to register under GST and need to pay Tax and fulfill all GST compliances

Lalit Bansal
CA, Delhi
773 Answers
61 Consultations

5.0 on 5.0

Hello,

You will have to get yourself registered in India and pay due GST as applicable if you are selling products in India.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi,

Relevant extracts of the Central Goods and Services Tax Act, 2017:

Section 1: Short title, extent and commencement

(2) It extends to the whole of India.

(There is an Ordinance which extends the Act to the whole of India including J&K. When the Act was first passed, this was not applicable to J&K)

Section 2: Definitions

(56) “India” means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters;

(77) “non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India;

(79) “non-taxable territory” means the territory which is outside the taxable territory;

(107) “taxable person” means a person who is registered or liable to be registered

under section 22 or section 24;

(108) “taxable supply” means a supply of goods or services or both which is

leviable to tax under this Act;

(109) “taxable territory” means the territory to which the provisions of this Act apply;

Section 24: Compulsory registration in certain cases

Notwithstanding anything contained in sub-section (1) of section 22, the following

categories of persons shall be required to be registered under this Act,––

(v) non-resident taxable persons making taxable supply;

(xi) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and

Relevant extracts of the Integrated Goods and Services Tax Act, 2017:

Section 1: Short title, extent and commencement

(2) It extends to the whole of India.

(There is an Ordinance which extends the Act to the whole of India including J&K. When the Act was first passed, this was not applicable to J&K)

Section 2: Definitions

(17) “online information and database access or retrieval services” (OIDAR Services) means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information technology and includes electronic services such as,––

(i) advertising on the internet;

(ii) providing cloud services;

(iii) provision of e-books, movie, music, software and other intangibles

through telecommunication networks or internet;

(iv) providing data or information, retrievable or otherwise, to any person

in electronic form through a computer network;

(v) online supplies of digital content (movies, television shows, music

and the like);

(vi) digital data storage; and

(vii) online gaming;

So, from combined reading of all the above points, below is my opinion.

1. Regarding Outsourcing to a sub-contractor. You need not register if the person to whom you outsource the work is registered for GST in India. Otherwise you have to Register

2. For direct sales to end-user you have to register as it will be an OIDAR Service which is a Taxable Supply

Pradeep Bhat
CA, Bengaluru
542 Answers
94 Consultations

5.0 on 5.0

Hello Sir,

As per the new GST rules if you are providing any service in India you have to get yourself register in India if you are not registered, even in case you do not have a PE, you have to appoint a person and then get yourself registered.

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi,

You may refer to section 13 of the Central GST Act which provides for registration of non-residents under GST law. Further, the benefit of tax treaties (PE, etc.) is available only for direct taxes and not indirect taxes.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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