GST registration for casual taxable person

Under Section 2(20) of the CGST Act, 2017, a Casual Taxable Person is a person who has a fixed place of business in India but occasionally undertakes taxable supplies of goods or services in a state where they do not have such a fixed place. Examples include event organisers holding exhibitions in other states, seasonal retailers, and contractors working on temporary projects. Section 24(vii) makes CTP registration mandatory before commencing such supplies.

Yes, under Section 24(vii) of the CGST Act, 2017, every casual taxable person must obtain GST registration before commencing any taxable supply. The registration is non-optional and non-condonable. Operating without CTP registration attracts a penalty of INR 10,000 or the amount of tax evaded, whichever is higher, under Section 122 of the CGST Act.

CTP registration is valid for 90 days from the date of issue by the GST officer. Under Rule 19, the registration can be extended by another 90 days by applying for extension before the expiry of the initial 90-day period. The extension is granted at the discretion of the proper officer. In practice, extensions are typically granted if the activity is genuinely ongoing and the advance deposit for the extended period is made.

Under Rule 19(4) of the CGST Rules, 2017, a CTP applicant must deposit an amount equal to their estimated tax liability for the period of registration as an advance. This deposit is made through the GST portal before the application is processed. The advance deposit is adjusted against the actual tax liability as per GSTR-3B returns filed during the registration period. Any excess deposit is refunded; any shortfall must be paid before filing the next GSTR-3B.

No. Under Rule 19, the maximum validity of CTP registration is 90 days initially, extendable by another 90 days. This means the maximum total period is 180 days. If your activity needs to continue beyond 180 days, you have two options: (1) apply for regular GST registration in that state, or (2) surrender the CTP registration and re-apply after a gap (this is impractical for ongoing activities). For long-duration projects, it is advisable to apply for regular GST registration instead.

Key differences: (1) Validity - CTP is 90+90 days; regular registration has no expiry. (2) Advance deposit - mandatory for CTP, not required for regular. (3) ITC - CTP can claim ITC only for the registered activity; regular registration has no such restriction. (4) Purpose - CTP is for occasional temporary supplies; regular registration is for ongoing business. (5) Cancellation - CTP lapses automatically; regular registration requires formal cancellation or is cancelled by the officer.

Yes, if you are making taxable supplies in another state where you do not have a regular GST registration. Your home state GST registration covers only supplies made from or within your home state. For supplies made in other states - even temporarily - you need either a regular registration in that state or a CTP registration for the temporary activity. If you have ongoing regular business in the new state, apply for a regular GST registration rather than using CTP.

Yes, a CTP can claim ITC on inputs used exclusively for the registered activity. Under Section 16 of the CGST Act, ITC is available for inputs, input services, and capital goods used or intended to be used in the course or furtherance of business. However, ITC claimed by a CTP is restricted to the specific activity for which the CTP registration was obtained. If the inputs are also used for other purposes, the ITC must be reversed proportionally.

A CTP must file GSTR-1 (outward supplies) and GSTR-3B (monthly summary return) on the same schedule as regular taxpayers - monthly (for most) or quarterly (under the QRMP scheme). The frequency is determined by the aggregate turnover, not the CTP status. If the CTP period does not cover a full calendar month, partial-month returns may be required. Due dates are the same as for regular taxpayers - 10th of the following month for GSTR-1 and 20th for GSTR-3B.

If the CTP registration expires without an extension, the GSTIN is automatically deactivated. You cannot raise valid tax invoices or collect GST after expiry. Any supplies made after expiry are treated as supplies made without registration, attracting penalties. If the activity is still ongoing, you must apply for a fresh CTP registration (if within the 180-day total limit) or for regular GST registration (if the activity is ongoing). Any advance deposit balance is refunded after filing the final GSTR-3B.

Yes, a foreign company with no fixed place of business in India can register as a CTP under Section 24(vii). However, they must appoint an authorised signatory in India (who can be an employee, director, or authorised representative). The foreign company must provide: PAN (if available), incorporation certificate from the home country, authorised signatory's Indian documents (PAN, Aadhaar, address proof), and a resolution authorising the signatory. A foreign company without any presence in India may alternatively register as a non-resident taxable person (Section 24(vii) read with Rule 12).

There is no explicit government fee for CTP registration itself. However, the advance deposit of estimated tax liability is mandatory - this is not a fee but a deposit against your expected tax liability for the registration period. The amount varies based on your activity type, estimated turnover, and applicable GST rates. For example, if you estimate INR 50 lakh in taxable supplies with an 18% GST rate, the advance deposit would be approximately INR 9 lakh (CGST + SGST). This deposit is adjusted against your actual GSTR-3B liability and any excess is refunded.

Yes, you can hold both a regular GST registration in your home state and a CTP registration in another state simultaneously. They operate independently: your regular registration covers ongoing business in your home state, while the CTP registration covers the temporary activity in the other state. Each registration has its own GSTIN, compliance calendar, and return filing requirements. You must file separate returns for each registration.

Key documents: (1) PAN card of the applicant, (2) Aadhaar card of the authorised signatory, (3) Proof of principal place of business (existing registration or address proof), (4) Proof of temporary place of business in the new state (venue agreement, event permit, lease for temporary premises), (5) Business constitution (Partnership deed, MOA/AOA, or incorporation certificate), (6) Authorisation letter for the signatory, (7) Bank account details (cancelled cheque), (8) Estimated tax liability statement for the 90-day period, (9) Event/contract document if applicable.

Under Section 24(vii) and Section 122 of the CGST Act, 2017, operating without CTP registration attracts a penalty of INR 10,000 or the amount of tax evaded, whichever is higher. Additionally: (1) You cannot legally collect GST from customers, (2) You cannot claim ITC on your purchases, (3) All supplies made without registration are treated as illegal, (4) The GST officer can also initiate proceedings under Section 74 for tax evasion. The penalty is in addition to the tax liability on the supplies made. Always obtain CTP registration before commencing the activity.

The advance deposit equals your estimated GST liability for the 90-day period. Calculation: (1) Estimate your taxable turnover for the 90-day period, (2) Apply the applicable GST rate (5%, 12%, 18%, or 28% depending on your goods/services), (3) Calculate CGST + SGST (for intrastate) or IGST (for interstate), (4) The total estimated tax is your advance deposit. For example, INR 50 lakh estimated turnover at 18% GST = INR 9 lakh advance deposit. We calculate this based on your contract documents, historical data, and applicable GST rates to ensure accuracy.

Yes, a partnership firm, LLP, or any other business entity can register as a CTP if they occasionally undertake taxable supplies in a state where they do not have a regular place of business. The registration process is the same as for individuals and companies. The entity must provide: (1) PAN of the firm/LLP, (2) Partnership deed or LLP agreement, (3) Authorised signatory details, (4) Proof of principal place of business, (5) Proof of temporary activity. The advance deposit is calculated based on the estimated tax liability of the firm/LLP for the registration period.

After the CTP registration period ends (or after the extension period), the advance deposit is adjusted as follows: (1) The deposit is credited against the tax liability shown in the final GSTR-3B for the CTP period, (2) If the actual tax liability is less than the advance deposit, the excess is refunded to your bank account, (3) If the actual tax liability exceeds the advance deposit, the difference must be paid through a supplementary challan before filing the final GSTR-3B, (4) Any interest or late fees due are also adjusted from the deposit balance, (5) The remaining balance (if any) is refunded within 15 working days of filing the final return.