Chapter VI - Registration
Section 27
Section 27: Casual and non-resident taxpayers
Section 27 gives casual and non-resident taxable persons a limited-duration registration and requires an advance deposit of estimated tax liability.
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Need advice on Section 27?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier and such person shall make taxable supplies only after the issuance of the certificate of registration: Provided that the proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of ninety days by a further period not exceeding ninety days.
(2) A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under sub-section (1) of section 25, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought: Provided that where any extension of time is sought under sub-section (1), such taxable person shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.
(3) The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided under section 49.
Introduction
Their registration runs for the application period or 90 days from its effective date, whichever is earlier. Supplies may start only after the certificate is issued. On sufficient cause, the proper officer may extend the 90-day period by up to another 90 days, with an additional estimated-tax deposit for that extension.
Key takeaways
Certificate before taxable supplies
A casual or non-resident taxable person may make taxable supplies only after the registration certificate is issued.
Registration is time-limited
It lasts for the application period or 90 days from effective registration, whichever is earlier, subject to statutory extension.
Estimated tax is deposited in advance
The applicant deposits estimated liability for the requested period; an extension requires an additional deposit.
Plan the initial period
Determine the actual expected business period and apply under section 25 before it begins. Section 27(1) caps ordinary validity at the shorter of the applied period or 90 days.
Extension and supply timing
If more time is needed, seek the proper officer's extension on sufficient cause before expiry. The further period cannot exceed 90 days, and taxable supplies await the issued certificate.
Advance estimated-tax deposit
At application, estimate liability for the requested period and deposit that amount. Repeat for an extension. The deposit credits to the electronic cash ledger and is used under section 49.
Practical checklist
Do
- Apply before business starts under section 25's special timing rule.
- Estimate tax and fund the cash ledger for the initial and any extended period.
- Track certificate issue and expiry dates.
Avoid
- Start taxable supplies merely because an application was filed.
- Assume the extension is automatic or unlimited.
Frequently asked questions
How long can this registration last initially?
The application period or 90 days from effective registration, whichever is earlier.
Can it be extended?
The proper officer may allow up to a further 90 days on sufficient cause, with an additional estimated-tax deposit.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026