GST Registration Schemes for India Explained

Which registration type applies to your business?

India offers multiple GST registration schemes. The right one depends on whether your business is physically located in India, whether you are providing digital services to consumers, or whether you are only present temporarily.

Scheme 1: Standard GST Registration

This is the registration type for businesses with a physical presence in India, including incorporated companies, branch offices, warehouses, and employees based in the country.

Standard registration covers all types of supplies, both B2B and B2C, domestic and export. Registered businesses can claim full Input Tax Credit (ITC) on their business purchases.

The registration form is GST REG-01, and registered businesses file GSTR-1 (outward supplies) and GSTR-3B (summary return with payment) monthly or quarterly, depending on their annual turnover. An annual return, GSTR-9, is due by December 31 each year.

A PAN (Permanent Account Number) is required for standard registration.

Scheme 2: Simplified Registration for Non-Resident OIDAR Providers (GST REG-10)

This is the registration type for foreign companies providing SaaS or other digital services to unregistered consumers in India, with no physical presence in the country.

This scheme covers B2C OIDAR supplies only. B2B sales to GST-registered Indian businesses are handled separately through the Reverse Charge Mechanism and do not require this registration.

Key features of this scheme:

• A single, nationwide registration covers all states in India.

• No PAN is required. A passport or foreign tax ID is accepted instead.

• Input Tax Credit cannot be claimed under this scheme.

• There is no turnover threshold. Registration is mandatory from the first B2C sale.

• Returns are filed monthly using GSTR-5A, due by the 20th of the following month.

• An authorized signatory based in India must be appointed.

Scheme 3: Non-Resident Taxable Person Registration (GST REG-09)

This scheme is for businesses that are temporarily present in India for trade fairs, exhibitions, short-term projects, or other occasional activities involving taxable supplies. It is not intended for ongoing remote sales.

Key features of this scheme:

• Registration is valid for up to 90 days, with a one-time extension of another 90 days available via GST REG-11.

• An advance tax deposit equal to the estimated tax liability for the entire registration period is required upfront.

• Monthly returns are filed using GSTR-5, due by the 13th of the following month.

• Input Tax Credit is limited and only available on imported goods.

• No PAN is required, though the Indian authorized signatory must provide their PAN.

Which scheme is right for a foreign SaaS company?

For most foreign SaaS companies selling into India:

• If you are selling to unregistered Indian consumers (B2C), Scheme 2 (GST REG-10) is the correct and recommended path.

• If you are selling only to GST-registered Indian businesses (B2B), no GST registration is required. The Indian buyer handles the tax under RCM.

• If you have temporary physical operations in India, Scheme 3 (GST REG-09) may apply during that period.

• If you have a permanent establishment in India, Scheme 1 (standard registration) is required.

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