GST Registration for Foreign Companies in India — When It Is Required and How to Register

Does a foreign company need GST registration in India?

Once incorporated, the Indian entity is treated as a separate Indian person for GST purposes. GST registration is required when taxable turnover exceeds Rs. 20 lakhs, the entity makes inter-state taxable supplies, or the entity receives services from outside India taxable under IGST.

For most foreign-owned Indian subsidiaries, GST registration should be obtained at incorporation because input tax credit is only available from the date of registration.

GST on import of services — the reverse charge trap

When the Indian subsidiary receives services from the foreign parent — management fees, technical services, software licenses, or royalties — these are treated as import of services under GST. The Indian recipient is liable to pay IGST under the Reverse Charge Mechanism at 18%.

The RCM obligation applies from the first day of operations regardless of turnover. Companies that do not register for GST promptly miss this obligation and accumulate liability.

Documents required for GST registration of an Indian subsidiary

Required documents include: PAN of the company, Certificate of Incorporation from MCA, MOA and AOA, Proof of principal place of business, No Objection Certificate from property owner if rented, Bank account details, PAN, Aadhaar and photograph of directors, Digital signature of the authorised signatory, and Board resolution authorising the signatory.

GST return filing calendar for Indian subsidiaries

Once registered, the following returns are mandatory: GSTR-1 for outward supply details filed monthly by the 11th; GSTR-3B summary return with tax payment filed monthly by the 20th; GSTR-9 annual return filed by December 31 of the following year; and GSTR-9C reconciliation statement applicable if turnover exceeds Rs. 5 crore.

Late fees of Rs. 50 per day apply for missed returns, plus 18% interest on late payment of tax.

GST on intercompany transactions — transfer pricing overlap

Intercompany transactions subject to transfer pricing for income tax are often also subject to GST. The transaction value for GST must be at arm's length — aligned with your transfer pricing documentation.

If the Indian subsidiary provides software development services to the foreign parent, this export of services is zero-rated for GST and eligible for refund of accumulated input credit.

GST registration, RCM compliance, return filing, and input credit optimisation are day-one obligations for any Indian subsidiary. Our compliance team handles end-to-end GST for 60+ foreign-owned Indian entities.