FAQ: Gst Compliance India
Answers on India market entry, FDI, GCC setup, tax, and compliance.
GST Registration & Compliance Services for Foreign Companies in India
How long does GST registration take for a new India subsidiary?
GST registration is typically granted within about a week of a complete online application, provided PAN, incorporation documents, and proof of the registered business address are in order — delays usually come from document mismatches or address verification, not the process itself. Read full answer →
What is a GST Letter of Undertaking (LUT) and why does it matter for an India subsidiary that exports?
A Letter of Undertaking lets an exporter supply goods or services without paying GST upfront and claiming a refund later — without an LUT on file, the subsidiary must pay GST on export invoices and then go through a separate, slower refund process, tying up working capital. Read full answer →
How does GST apply when a foreign company provides services to an Indian recipient?
Services supplied by a foreign company to an Indian recipient are treated as an import of services under GST — taxed via reverse charge in the hands of the Indian recipient in most business-to-business cases, meaning the foreign supplier doesn't need to register or charge GST itself. Read full answer →
What is the reverse charge mechanism under GST and when does an India subsidiary need to pay it?
Under reverse charge, the recipient of a supply pays GST directly to the government instead of the supplier — this applies most commonly to an India subsidiary importing services from its foreign parent, since the foreign supplier isn't GST-registered in India to charge it directly. Read full answer →
Does a foreign company need GST registration to sell into India?
A foreign company without a physical presence in India generally doesn't register for GST itself — GST obligations typically attach to its India subsidiary or, for certain digital services sold directly to Indian consumers, through the OIDAR (cross-border digital services) registration regime. Read full answer →
Sources and rules
The rules behind this topic are published by the authorities below. Laws and circulars change, so check the current text at the source before you act on any point on this page.
- GST PortalRegistration, returns, e-invoicing and notifications
- CBIC: Central Board of Indirect Taxes and CustomsCGST Act, 2017, IGST Act, 2017, rules, circulars and notifications