Trade Circular (GST) No. 18 T of 2019 explains information related to  Casual Taxable Person (CTP) and Non-Resident Taxable Person (NRTP) of GST Registration, GST Return, GST Refund, Input Tax Credit (ITC) and Tax Invoice.

Office of the
Commissioner of State Tax,
8th Floor, GST Bhavan,
Mazgaon, Mumbai.

TRADE CIRCULAR

No. JC(HQ)-1/GST/2019/CTP_NRTP/ADM-8/ B – 196

Trade Circular (GST) No. 18 T of 2019

Mumbai Dt. 07/05/2019

 

Subject: Providing information regarding Casual Taxable Person (CTP) and Non-Resident Taxable Person (NRTP).

Reference: Trade Circular No. 4IT of 2018 dated 31st Dec. 2018.

The provisions under Maharashtra Goods and Services Tax Act, 2017(`MGST Act’) and Maharashtra Goods and Services Tax Rules, 2017(`MGST Rules’) regarding ‘casual taxable person’ (hereinafter referred to as CTP) and ‘Non-Resident Taxable Person’ (hereinafter referred to as NRTP) are explained as under:

Part A Casual Taxable Person

Section 2 (20) of MGST Act defines ‘casual taxable person’ as ‘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 the taxable territory where he has no fixed place of business.’ Section 2(109) of the MGST Act defines ‘taxable territory’ as ‘the territory to which the provisions of this Act apply.’

Rule 5 (1)(a) of the MGST Rules states that a casual taxable person cannot exercise the option to pay tax under composition levy.

1. Registration (Section 24 of the MGST Act, 2017)

A CTP (except those exempted from obtaining registration by notifications u/s 23(2) of MGST Act) making taxable supply in Maharashtra has to compulsorily obtain registration irrespective of the turnover. CTP has to apply for registration at least five days prior to the commencement of business. There is no special application form to register as a CTP. The normal FORM GST REG-01 which is used by other applicants can be used for obtaining registration by a CTP.

A CTP , before applying for registration, should declare his Permanent Account Number, mobile number, e-mail address, State in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner [MGST rule 81

The Permanent Account Number shall be validated online by the common portal. The mobile number declared shall be verified through a one-time password sent to the said mobile number; and the e-mail address shall be verified through a separate one-time password sent to the said e-mail address. On successful verification of the Permanent Account Number, mobile number and e-mail address, a temporary reference number shall be generated and communicated to the applicant on the said mobile number and e-mail address.[MGST rule 67

Using this reference number generated, the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly signed or verified through electronic verification code, along with the documents specified in the said Form at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. [MGST rule 8j

The applicant will be given a temporary reference number by the common portal for making the mandatory advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. The registration certificate shall be issued electronically only after the said deposit appears in his electronic cash ledger. The amount deposited shall be credited to the electronic cash ledger of CTP. On depositing the amount, an acknowledgement shall be issued electronically to the applicant in FORM GST REG-02.

The CTP can make taxable supplies only after the issuance of 11w certificate of registration. The certificate of registration shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.

In case CTP intends to extend the period of registration, an application in FORM GST REG-II shall be submitted by him electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, before the end of the validity of registration granted to him [MGST rule 15]. The validity period of ninety days can be extended by a further period not exceeding ninety days [MGST  see. 27(1) proviso]. The extension will be allowed only on payment of the amount of an additional amount of tax equivalent to the estimated tax liability for the period for which the extension is sought.

As clarified in Trade Circular No.4 IT of 2018 issued by the Commissioner of State Tax, Maharashtra, in case of long running exhibitions (for a period more than 180 days), the taxable person cannot be treated as a CTP and thus such person would be required to obtain registration as a normal taxable person. While applying for normal registration the said person should upload a copy of the allotment letter granting him permission to use the premises for the exhibition and the allotment letter/consent letter shall be treated as the proper document as a proof for his place of business. In such cases, such a supplier would not be required to pay advance tax for the purpose of registration. Such supplier can surrender such registration once the exhibition is over.

II.  Tax Invoice

Provisions of see. 31 of MOST Act regarding issuing of tax invoice are applicable to a CTP also. Tax invoice shall be issued for each and every supply made by him, if the value of such a supply exceeds rupees two hundred [AIGST sec 31(3)(10.1. HSN Code needs to be mentioned on tax invoice [MGST rule 46].

  • Entities having annual turnover in the preceding financial year upto Rs.I.5 crore need not mention FISN code on the invoice.
  • Entities having annual turnover in the preceding financial year of more than Rs.I .5 crore to Its 5 crores will be required to mention the first two digits of the HSN code on the invoice.
  • Entities having more than Rs.5 crores annual turnover in the preceding financial year will be required to display four digits of the HSN code on the invoke.

III. Input Tax Credit

As clarified in the Trade Circular No. 41 T of 2018. the amount of advance tax which a CTP is required to deposit while obtaining registration should be calculated after considering the due eligible ITC which might be available to such taxable person.

IV. Returns (Section 39 of the MGST Act,2017)

CTP is required to furnish returns in Form GSTR-I, GSTR-2, GSTR-3 and GSTR-3B electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner:

However, a CTP shall not he required to file any annual return as required by a normal registered supplier. [MOST sec. 440)]

V. Refund (Section 54(13) of the MGST Act,2017)

The casual taxable person is eligible for the refund of any balance of the advance tax deposited by him after adjusting his tax liability. The balance advance tax deposit can be refinided only after all the returns have been furnished, in respect of the entire period for which the certificate of registration was in force.

Part B – Non-Resident. Taxable Person [NRTP]

Section 2 (77) of the MOST Act, 2017 defines ‘non-resident taxable person’ as, “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.”

NRTP cannot exercise the option to pay tax under composition levy. [MGST rule 5(I)] 

1. Registration ( Section 24 of the MGST Act,2017)

NRTP making taxable supply in India has to compulsorily obtain registration. There is no threshold limit for registration. NRTP has to apply for registration at least five days prior to commencing his business in India using a valid passport (arid need not have a PAN in India.). A business entity incorporated or established outside India, has to submit the application for registration 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 Permanent Account Number, if available.[MGST rule 13(I) proviso)] NRTP has to make an advance deposit of tax in an iount equivalent to his estimated tax liability for the period for which the registration is sought.

NRTP is not required to apply in normal application for registration being filed by other taxpayers. A simplified form GST REG-09 is required to be filed. NRTP has to electronically submit an application, along with a self-attested copy of his valid passport, for registration, duly signed or verified through EVC. in FORM GST REG-09, at least five days prior to the commencement of business at the Common Portal either directly or through a Facilitation Centre notified by the Commissioner.

The application for registration made by NRTP has to be signed by his authorized signatory who shall be a person resident in India having a valid PAN. On successful verification of PAN, mobile number and e-mail address the person applying for registration as a NRTP will be given a temporary reference number by the Common Portal for making the mandatory advance deposit (as per Section 27(2) of mogr Act, 2017) of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. [51GST ruk 13(2)]. The registration certificate shall be issued electronically only after the said deposit appears in his electronic rash ledger. The amount deposited shall be credited to the electronic cash ledger of the NRTP.

The NRTP can make taxable supplies only after the issuance of the certilicate of registration. The certificate of registration shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.

In case the non-resident taxable person intends to extend the period of registration (zis per Rule 15 of the MGST Rides, 2017) indicated in his application of registration, an application in FORM GST REG-11 shall be submitted electronically through the Common Portal, either directly or through a Facilitation Centre, notified by the Commissioner, before the end of the validity of registration granted to him. The validity period of ninety days can be extended by a further period not exceeding ninety days, The extension will be allowed only on payment of the amount of an additional amount of tax equivalent to the estimated tax liability for the period for which the extension is sought.

As explained in Trade Circular No.41T of 2018 issued by the Commissioner of State Tax, Maharashtra, long-running exhibitions (for a period more than 180 days), the taxable person cannot be treated as CTP and hence such person would be required to obtain registration as a normal taxable person. The clarification in the said circular shall be equally applicable to a NRTP also.

II. Tar Invoice

Provisions, about mentioning of TISN on tax invoices, as explained above, in respect of CTP are equally applicable to a NRTP also.

III. Input Tax Credit

Input tax credit shall not be available in respect of goods or services or both received by a NRTP [MGST sec. 17(5)(f)] but input tax credit on goods imported by him is available. The tax paid by a NRTP shall be available as credit to respective recipients of his supplies.

IV. Returns (Section 39(5) of the MGST Act)

NRTP shall furnish a return in FORM GSTR-5 electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, including therein the details of outward supplies and inward supplies and shall pay the tax, interest, penalty, fees or any other amount payable under the Act or these rules.[MGST rule 63J

V. Refund (Section 54(13) of the MGST Act) :

The amount of advance tax deposited by a non-resident taxable person at the time of initial registration/ extension of registration, will be refunded only after the person has furnished all the returns required in respect of the entire period for which the certificate of registration granted to him had remained in force.

Part C – Owners/managers of premises, areas:

Owners/managers of the premises/areas etc. are requested to bring these provisions of MGST/CGST Act and Rules, 2017 to the notice of organizers / exhibitors/event mangers/ stall owners, who are carrying on business in their premises, areas etc. in the state.

Owners/manager of the premises/areas are also requested to provide information of exhibitions / events/stall owners in Annexure I and II of the circular at least 20 days before the beginning of every quarter. For Mumbai this information may be sent on email ctpnrtp@mahagst.gov.in and /or at NRC Cell, C, Wing, 3rd Floor, Old Building, GST Bhavan, Mazgaon, Mumbai-400010. For other than Mumbai location this information may be sent to respective Joint Commissioner of State Tax, (Adm).

(Rajiv Jalota)
Commissioner of State Tax
Maharashtra State, Mumbai.

Copy forwarded to the Joint Commissioner of State Tax (Mahavikas) with a request to upload this Trade Circular on the Department’s website.

(Sh H. Umale)

Joint Commissioner of State Tax,

(HQ)-1, Maharashtra State, Mumbai

Annexure I

Information / Schedule of Exhibitions/Events organised at the premises

Name of Venue
Address
Email
Contact No.
Whether On Lease/ Owned/ Rented
GSTN
Sr. No. Description Period of Event Details of Organiser
From To Name of Organiser GSTN Address Email Contact No

 Annexure II

Information Exhibitions/Stall owners/ Participants

Name of Exhibition / Event
Address of Exhibition / Event
Name of Organise
Address of Organiser
Email
Contact No.
Whether Owned/ On Lease/
GSTN
Period of Exhibition/ Event From To

Sr. No. Details of Stall Owner/ Participant Contact No.
Name GSTN State Address Email

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