GST Tale of a Non-Resident Businessman in India

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....ST Tale of a Non-Resident Businessman in India<br>By: - Pradeep Reddy<br>Goods and Services Tax - GST<br>Dated:- 21-3-2025<br>GST Tale of a Non-Resident Businessman in India&#127759; Mr. Kamath, a savvy businessman from the UK &#127757;, decided to test the waters in the Indian market by setting up a short-term stall at the upcoming Delhi Expo 2025 &#127970;. But before he could land in India, h....

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....e faced the big question: does he need GST registration to undertake sales? &#129534; &#119830;&#119841;&#119848; &#119842;&#119852; Mr.Kamath? &#129300; Per Section 2(77) of the GST Act, Mr.Kamath qualifies as a "non-resident taxable person"-someone who doesn't reside or operate permanently in India but wants to do business here &#128748;. &#119827;&#119841;&#119838; &#119814;&#119826;&#119827....

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....; &#119825;&#119838;&#119840;&#119842;&#119852;&#119853;&#119851;&#119834;&#119853;&#119842;&#119848;&#119847; &#119810;&#119841;&#119834;&#119845;&#119845;&#119838;&#119847;&#119840;&#119838;: &#119830;&#119841;&#119838;&#119847; &#119834;&#119847;&#119837; &#119815;&#119848;&#119856;? &#128221; Kamath couldn't just start right away! According to Sections 25 and 27, he needed to apply for GST r....

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....egistration at least five days before commencing business &#128340;. This registration would last 90 days (or the duration he specified). The twist? Kamath had to deposit an estimated GST amount upfront &#128184;, even before making a single rupee! This would later be adjusted against his actual tax liability. &#119821;&#119834;&#119855;&#119842;&#119840;&#119834;&#119853;&#119842;&#119847;&#11....

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....9840; &#119814;&#119826;&#119827; &#119825;&#119838;&#119853;&#119854;&#119851;&#119847;&#119852; &#128198; 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 &#128196;. &#119827;&#119841;&#119838; &#119809;&#119842;&#119840; &#119826;&#119841;&#119848;&#119836;&#119844;: &#119....

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....821;&#119848; &#119816;&#119847;&#119849;&#119854;&#119853; &#119827;&#119834;&#119857; &#119810;&#119851;&#119838;&#119837;&#119842;&#119853; &#128561; Being business-savvy, Kamath planned to offset GST payable on sales with GST paid on expenses (like hotel &#127976; and stall rent). However, Section 17(5)(f) shattered that idea--non-resident taxable persons like him aren't allowed to claim inp....

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....ut tax credits. All that GST on hotel bills? Unrecoverable! &#10060; &#119827;&#119841;&#119838; &#119813;&#119842;&#119847;&#119834;&#119845; &#119827;&#119856;&#119842;&#119852;&#119853;&#9203; After wrapping up his business, Kamath realized he'd overpaid GST and was eager for a refund &#128176;. However, because he missed filing one required return, his refund was delayed. Frustrated, he jok....

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....ed to the tax officer, "&#119923;&#119952;&#119952;&#119948;&#119956; &#119949;&#119946;&#119948;&#119942; &#119920; &#119956;&#119953;&#119942;&#119951;&#119957; &#119950;&#119952;&#119955;&#119942; &#119957;&#119946;&#119950;&#119942; &#119952;&#119951; &#119953;&#119938;&#119953;&#119942;&#119955;&#119960;&#119952;&#119955;&#119948; &#119957;&#119945;&#119938;&#119951; &#119939;&#119958;&#11995....

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....6;&#119946;&#119951;&#119942;&#119956;&#119956;!" The officer replied with a smile, "&#120402;&#120410;&#120417;&#120408;&#120420;&#120418;&#120410; &#120425;&#120420; &#120388;&#120419;&#120409;&#120414;&#120406;, Mr. Kamath! &#120387;&#120410;&#120423;&#120410;, &#120421;&#120406;&#120421;&#120410;&#120423;&#120428;&#120420;&#120423;&#120416; &#120414;&#120424; &#120416;&#120414;&#120419;&#1204....

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