TaxTMI 
TaxTMI 
GST Tale of a Non-Resident Businessman in India๐
Mr. Kamath, a savvy businessman from the UK ๐, decided to test the waters in the Indian market by setting up a short-term stall at the upcoming Delhi Expo 2025 ๐ข.
But before he could land in India, he faced the big question: does he need GST registration to undertake sales? ๐งพ
๐๐ก๐จ ๐ข๐ฌ Mr.Kamath? ๐ค
Per Section 2(77) of the GST Act, Mr.Kamath qualifies as a 'non-resident taxable person'โsomeone who doesnโt reside or operate permanently in India but wants to do business here ๐ฌ.
๐๐ก๐ ๐๐๐ ๐๐๐ ๐ข๐ฌ๐ญ๐ซ๐๐ญ๐ข๐จ๐ง ๐๐ก๐๐ฅ๐ฅ๐๐ง๐ ๐: ๐๐ก๐๐ง ๐๐ง๐ ๐๐จ๐ฐ? ๐
Kamath couldnโt just start right away!
According to Sections 25 and 27, he needed to apply for GST registration at least five days before commencing business ๐. This registration would last 90 days (or the duration he specified).
The twist?
Kamath had to deposit an estimated GST amount upfront ๐ธ, even before making a single rupee! This would later be adjusted against his actual tax liability.
๐๐๐ฏ๐ข๐ ๐๐ญ๐ข๐ง๐ ๐๐๐ ๐๐๐ญ๐ฎ๐ซ๐ง๐ฌ ๐
Per Section 39, he had to file monthly returns. Thankfully, Section 44 spared him from filing an annual return, but he still had to stay diligent with his monthly filings ๐.
๐๐ก๐ ๐๐ข๐ ๐๐ก๐จ๐๐ค: ๐๐จ ๐๐ง๐ฉ๐ฎ๐ญ ๐๐๐ฑ ๐๐ซ๐๐๐ข๐ญ ๐ฑ
Being business-savvy, Kamath planned to offset GST payable on sales with GST paid on expenses (like hotel ๐จ and stall rent).
However, Section 17(5)(f) shattered that idea--non-resident taxable persons like him arenโt allowed to claim input tax credits. All that GST on hotel bills? Unrecoverable! โ
๐๐ก๐ ๐
๐ข๐ง๐๐ฅ ๐๐ฐ๐ข๐ฌ๐ญโณ
After wrapping up his business, Kamath realized heโd overpaid GST and was eager for a refund ๐ฐ. However, because he missed filing one required return, his refund was delayed.
Frustrated, he joked to the tax officer, โ๐ณ๐๐๐๐ ๐๐๐๐ ๐ฐ ๐๐๐๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐๐!โ
The officer replied with a smile, โ๐๐๐ก๐๐ค๐ข๐ ๐ฉ๐ค ๐๐ฃ๐๐๐, Mr. Kamath! ๐๐๐ง๐, ๐ฅ๐๐ฅ๐๐ง๐ฌ๐ค๐ง๐ ๐๐จ ๐ ๐๐ฃ๐.โ ๐
ย
GST Tale of a Non-Resident Businessman in India๐
Pradeep Reddy
UK Businessman Faces GST Challenges at Delhi Expo 2025; Refund Delayed Due to Filing Error Under Section 2(77). A UK businessman, identified as a non-resident taxable person under Section 2(77) of the GST Act, aimed to explore the Indian market by setting up a stall at the Delhi Expo 2025. Before starting, he was required to register for GST at least five days prior to business commencement, with the registration valid for 90 days. He needed to deposit an estimated GST amount upfront, which would adjust against actual liabilities. Despite filing monthly returns, he couldn't claim input tax credits on expenses like hotel bills. After overpaying GST, his refund was delayed due to missing a required return filing. (AI Summary)