In today’s post we shall be discussing the registration provisions for Casual Taxable Person & Non-Resident Taxable Person. To begin with, it’s vital to understand certain terms.
Casual Taxable Person: Section 2(20) of the CGST Act, 2017 provides that CTP is a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
Non-Resident Taxable Person: Section 2(77) of the CGST Act, 2017 provides that NRTP means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India
Now, lets discuss the provisions for registrartion of CTP & NRTP in a comprehensive manner.
| CTP, NRTP GET IT FOR 90 DAYS (+90 DAYS)
Section 27(1) |
The certificate of registration issued to CTP or NRTP shall be valid for the specified period/90 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, upon sufficient cause being shown, extend the said period of 90 days by a further period not exceeding 90 days |
| Make Advance Payment of Tax
Section 27 (2) |
CTP or NRTP shall,
at the time of submission of application for registration u/s 25(1), make an advance deposit of tax of an amount equal to the estimated tax liability for the period for which the registration is sought Provided that, where any extension of time is sought u/s 27(1), such taxable person shall deposit an additional amount of tax equal to the estimated tax liability for the period for which the extension is sought. |
| Section 27(3) | The amount deposited u/s 27(2) shall be credited to the electronic cash ledger of such person and shall be utilized in the manner provided u/s 49. |
The relevant rules of the CGST Rules, 2017 which can help in better understanding are as discussed below
Rule 13. Grant of registration to NRTP
1. A non-resident taxable person shall electronically submit an application,
- along with a self-attested copy of his valid passport, for registration,
- duly signed or verified through electronic verification code,
- in FORM GST REG-09,
- at least 5 days before commencement of business
Provided that, in the case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its PAN, if available.
2. A person applying for registration as a NRTP,
- shall be given a TRN (Temporary reference number)by the common portal,
- for making an advance deposit of tax , and
- the acknowledgement shall be issued electronically after the said deposit in his electronic cash ledger.
3. The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.
4. The application for registration made by a NRTP
- shall be, duly signed /verified through electronic verification code
- by his authorized signatory
- who shall be a person resident in India having a valid PAN
Rule 15 Extension in period of operation by casual taxable person and non-resident taxable person
1. Where a registered CTP or NRTP intends to extend the period of registration indicated in his application of registration,
- an application in FORM GST REG-11 shall be submitted electronically
- by such person
- before the end of the validity of registration granted to him.
2. The application under sub-rule (1) shall be acknowledged only on payment of the amount specified in sub-section (2) of section 27.
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