NRTP Registration - 1

[KSA Associates]

XYZ inc. is located in USA. It has sold the machinery to ABC Ltd in India.

XYZ is sending it's personnel to India to train the ABC limited staff regarding machinery. This training expenses is billed separately. ABC limited pay GST on this via RCM . Kindly guide to evaluate Whether XYZ Inc. is liable to take the NRTP registration as per provisions of GST law.

[Sadanand Bulbule]

In terms of Section 24 of the CGST Act, among others the following persons must take registration:

24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,––

(i) XXXX

(ii) XXXX

(iii) persons who are required to pay tax under reverse charge;

(iv) XXXX

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

[KSA Associates]

Thanks Sadanandji for your inputs.

However, As per Notification 5/2017 CGST, it has been mentioned that if output is taxable under RCM, there is no need to take registration.

Why NRTP will not get this benefit??

[YAGAY andSUN]

XYZ Inc., a company incorporated in the USA, is supplying training services in India by deputing its personnel to train the staff of ABC Ltd. The service is billed separately from the machinery supply. While ABC Ltd. is discharging GST liability on the training services under reverse charge mechanism (RCM), it is important to analyze whether XYZ Inc. is still required to obtain registration under Indian GST law.

As per Section 24(v) of the CGST Act, non-resident taxable persons (NRTPs) making taxable supplies in India are mandatorily required to obtain GST registration, irrespective of the turnover threshold. Although Notification No. 5/2017-Central Tax exempts persons from registration if their entire output is taxable under RCM, this exemption does not extend to NRTPs. The notification provides general relief but does not override the specific provision under Section 24(v), which explicitly mandates registration for NRTPs making taxable supplies. Therefore, despite the fact that the tax is paid by the recipient (ABC Ltd.) under RCM, XYZ Inc. is still required to take GST registration in India as an NRTP.

[Sadanand Bulbule]

Thanks to Yagay and Sun for validation.

[Shilpi Jain]

Registration under GST is required only at a place from where supply is made. When the training is provided in India, only the final leg of execution happens in India, many other aspects like co-ordination, planning, etc. happen abroad.

So when supply in its entirety or majority is not done in India, no requirement to take registration in India.

AI Summary

Non-resident taxable person registration required even when tax is paid via reverse charge for services supplied in India. Section 24(v) requires non-resident taxable persons making taxable supplies in India to obtain GST registration irrespective of turnover. Notification No. 5/2017 relieves persons whose entire output is taxable under reverse charge from registration, but that exemption does not apply to NRTPs; therefore a foreign supplier deputing personnel to provide taxable training in India must register as an NRTP. A contrary practical view depends on place-of-supply analysis-if the supply is not treated as made in India, NRTP registration may not be required.