(1) Validity of certificate of registration issued to a casual taxable person or iron-resident taxable person [Section 27(1)] :
The certificate of registration issued to a casual taxable person (CTP) or a non-resident taxable person (NRTP) shall be valid:
— for the period specified in the application for registration
— 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:
1. Meaning of Casual Taxable Person (Section 2(20)):
Casual Taxable Person (CTP) means 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/UT where he has no fixed place of business.
2. Meaning of Non-Resident Taxable Person [Section 2(77)] :
Non-Resident Taxable Person (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
It may be noted that—
— A CTP does not have a fixed place of business in the State/UT where he undertakes supply though he might be registered with regard to his fixed place of business in some other State/UT, while a NRTP does not have fixed place of business/residence in India at all.
— A CTP has to undertake transactions in the course or furtherance of business whereas the business test is absent in the definition of NRTP.
— A casual taxable person (CTP) or a non-resident taxable person (NRTP) shall apply for registration at least 5 days prior to the commencement of business
— PAN is not necessary for non-resident. A non-resident taxable person may be granted registration under section 25(1) on the basis of such other documents as may be prescribed.
Further extension of validity period (Proviso to section 27(1)]:
The proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of 90 days by a further period not exceeding 90 days.
(2) Advance deposit of tax [Section 27(2)):
A casual taxable person (CTP) or a non-resident taxable person (NRTP) shall, at the time of submission of application for registration under section 25(1), 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:
Further, where any extension of time is sought under section 25(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.
Temporary reference number for person applying for GST Registration as a casual taxable person [Rule 8(6)] :
A person applying for registration as a casual taxable person shall be given a temporary reference number by the common portal for making advance deposit of tax in accordance with the provisions of section 27.
(3) Credit of advance deposit to the electronic cash ledger [Section 27(3)] :
The amount deposited under section 27(2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided under section 49.