The Goods and Services Tax (GST) framework differentiates between Casual Taxable Persons (CTP) and Non-Resident Taxable Persons (NRTP), each with distinct compliance requirements. A CTP is an Indian entity or individual supplying taxable goods or services in a state where they do not have a fixed business presence. Conversely, an NRTP refers to a foreign entity or individual supplying goods or services in India without a place of business or residence. Both categories require mandatory GST registration before initiating taxable transactions, with applications needing to be filed at least five days in advance. The registration for both CTP and NRTP is valid for a maximum of 90 days, extendable for another 90 days. They must pay advance tax based on estimated turnover at the time of registration and are ineligible for the Composition Scheme. Compliance involves filing GSTR-1 (for outward supplies) and GSTR-3B (for summary returns) monthly for CTPs, while NRTPs submit GSTR-5. A final return must be filed within seven days of registration expiry. While CTPs can claim Input Tax Credit (ITC) on inward supplies within their registration period, NRTPs cannot pass ITC to other taxpayers. CTPs commonly include event organizers, trade fair participants, and seasonal businesses, while NRTPs typically involve foreign firms providing goods, international event participants, or overseas digital service providers. Compliance challenges for both include advance tax burdens and limited registration duration, with NRTPs facing additional complications such as customs-related GST and the requirement of a local GST representative. These provisions fall under Sections 2(20) and 24 of the CGST Act, 2017, with Rule 13 of the CGST Rules governing the registration process.
Jurisprudential and compliance paradigms under the GST framework: Correlative analysis of Casual Taxable Persons (CTP) and Non-Resident Taxable Persons
| Criteria | Casual Taxable Person (CTP) | Non-Resident Taxable Person (NRTP) |
| Definition (CGST Act, 2017) | A person who occasionally supplies taxable goods/services in a taxable territory where they do not have a fixed place of business. | A person who occasionally supplies goods/services in India but does not have a place of business or residence in India. |
| Applicability | Applies to Indian residents conducting business in a different state/union territory on a temporary basis. | Applies to foreign businesses or individuals supplying goods/services in India. |
| GST Registration Requirement | Mandatory before making any taxable supply. | Mandatory before making any taxable supply. |
| Registration Timeline | Must apply at least 5 days before starting business. | Must apply at least 5 days before starting business. |
| Validity of Registration | Maximum 90 days, extendable by another 90 days. | Maximum 90 days, extendable by another 90 days. |
| Advance Tax Payment | Required based on estimated turnover at the time of registration. | Required based on estimated turnover at the time of registration. |
| Filing of Returns | – Monthly GSTR-1 (outward supplies) and GSTR-3B (summary return). – Final return GSTR-5 within 7 days of registration expiry. | – Monthly GSTR-5. – Final return within 7 days of registration expiry. |
| Eligibility for Composition Scheme | Not eligible for the Composition Scheme. | Not eligible for the Composition Scheme. |
| Input Tax Credit (ITC) | Can claim ITC on inward supplies but restricted by registration period. | Can claim ITC on inward supplies but cannot pass ITC to other registered taxpayers. |
| Place of Business Requirement | No fixed place of business in the state/union territory where business is conducted. | No fixed place of business or residence in India. |
| Common Examples | – Event organizers, trade fair exhibitors, seasonal businesses, temporary construction projects. | – Foreign companies supplying goods/services in India, international event participants, overseas online service providers. |
| Key Compliance Challenges | – Cash flow burden due to advance tax payment. – Registration restricted to a maximum of 180 days. – Complex refund process for excess tax paid. | – Needs a local GST representative for compliance. – No permanent ITC benefits. – Customs and import-related GST complexities. |
| Relevant GST Sections | – Section 2(20), Section 24 (Registration). – Rule 13 of CGST Rules, 2017 (Registration Process). | – Section 2(77), Section 24 (Registration). – Rule 13 of CGST Rules, 2017 (Registration Process). |
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