Special Provisions Relating to Casual Taxable Person and Non-Resident Taxable Person

1. What Section 27 does

Section 27 deals specifically with the registration period and tax-deposit requirements for casual taxable persons (CTPs) and non-resident taxable persons (NRTPs).

A CTP may enter a State temporarily without having a fixed place of business there. An NRTP may make taxable supplies in India without having a fixed place of business or residence in India. Both categories require a registration process designed for temporary or specialised operations.

Section 27 should be read together with Sections 24, 25 and the registration Rules. Section 25 determines the advance timing for the application; Section 27 determines the special validity and advance-tax regime.

2. Complete statutory structure

The CBIC FAQ reproduces the practical interpretation: initial validity is the shorter of the application period and 90 days, and extension can be granted for a further period not exceeding 90 days. It also confirms the advance-tax requirement. citeturn0search3

3. Casual taxable person — who is covered?

A casual taxable person is a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business in a State or Union Territory where the person has no fixed place of business.

This definition makes the temporary nature and absence of a fixed place of business important. A business cannot simply choose CTP registration because it is convenient; the facts must fit the statutory category.

4. Non-resident taxable person

An NRTP 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 another capacity, but who has no fixed place of business or residence in India.

The special procedure reflects the practical difficulty of enforcing tax collection from a person who does not have an ordinary Indian business establishment.

5. Initial validity period

The statutory validity rule contains two limits:

CBIC's FAQ expressly describes the “period specified or 90 days, whichever is earlier” formulation. citeturn0search3

6. Advance deposit of tax

The special registration regime requires an advance deposit of tax. At the time of application, the CTP or NRTP must deposit an amount equivalent to the estimated tax liability for the period for which registration is sought.

This is fundamentally different from ordinary registration, where advance payment of the estimated output tax is not ordinarily a precondition for obtaining GST registration.

Rule 8 requires the CTP applicant to receive a temporary reference number for making the advance deposit, and the acknowledgement is issued after the required deposit. For NRTPs, Rule 13 similarly requires advance deposit before the acknowledgement. citeturn0search0

7. Extension of registration

Where the CTP or NRTP needs to continue business beyond the initial validity period, the registration can be extended by the proper officer at the taxpayer's request, subject to the statutory maximum of a further ninety days.

The extension must be requested before the existing registration validity expires. The Rules provide the electronic procedure and require payment of the additional amount specified under Section 27(2).

CBIC's registration Rules require the extension application to be made before the end of the validity and provide for acknowledgement only after payment of the specified additional amount. citeturn0search0

8. Five-day application rule

Section 25(1), read with the special registration procedure, requires a CTP or NRTP to apply for registration at least five days before commencement of business.

This timing requirement is separate from Section 27's validity and advance-tax rules.

CBIC's Rule 13 procedure requires an NRTP application at least five days before commencement of business, and the corresponding CTP procedure is integrated into Rule 8. citeturn0search0

9. Registration forms and Rules

CBIC's current registration Rules page specifically describes REG-09 for NRTPs and the extension process, while also setting out the advance-deposit mechanics. citeturn0search0

10. Returns during special registration

Special registration does not mean the taxpayer is outside the ordinary GST compliance framework. Once registered, the CTP/NRTP must comply with the applicable invoicing, tax-payment, return and record requirements for the period of registration.

NRTPs are associated with the specialised return framework applicable to non-resident taxpayers. The exact return form and filing frequency should be checked against the current Rules and portal functionality applicable to the relevant period.

11. Input tax credit and business expenses

Being a CTP or NRTP does not by itself convert every purchase into eligible ITC. The normal eligibility requirements, documentation conditions and blocked-credit provisions continue to matter.

For a temporary exhibition, for example, the business should separately examine venue services, advertising, freight, temporary structures and other expenses under Sections 16 and 17 and the applicable Rules.

12. Long-running exhibitions — important boundary

CBIC Circular No. 71/45/2018-GST clarifies that where an exhibition runs for more than 180 days, the person cannot continue to be treated as a casual taxable person merely on the basis of the exhibition. The person would need normal registration treatment.

The Circular also explains that the allotment/consent letter permitting use of the exhibition premises can be used as the appropriate proof of place of business for normal registration and that advance tax is not required for that normal registration. citeturn0search4

13. When a CTP should move to normal registration

The CTP framework is intended for temporary activity. If the person establishes a fixed place of business in the State, or the activity becomes sufficiently continuing that the CTP conditions no longer fit, ordinary registration should be evaluated.

14. Balance after the special registration period

The advance deposit is an advance payment mechanism against the estimated tax liability; it is not a separate tax in addition to the final liability.

The taxpayer should reconcile the advance deposit with actual tax payable through the electronic liability/cash ledger and the applicable return process. Any remaining balance should be handled under the normal electronic-ledger/refund framework applicable to the taxpayer and circumstances.

15. Legislative development

CBIC's published FAQ and Circular 71/45/2018-GST continue to describe the special validity and long-running exhibition treatment. citeturn0search3turn0search4

16. CBIC clarification — Circular 71/45/2018-GST

This Circular is especially useful in practice because it deals with an issue that the bare 90-day provision does not completely explain: what happens when an exhibition continues beyond the special CTP framework.

• Exhibition exceeding 180 days cannot continue to be treated as CTP merely because it is an exhibition.
• The person should obtain normal registration.
• The exhibition allotment letter/consent letter can support proof of place of business.
• Advance tax applicable to CTP registration is not required for the normal registration.
• Normal registration can be surrendered after the exhibition is over, subject to the cancellation framework.

The official Circular states these points directly. citeturn0search4

17. Detailed practical examples

Example 1 — 30-day exhibition

A Delhi-based trader participates in a 30-day taxable exhibition in Hyderabad without a fixed place of business in Telangana. The facts may fit CTP registration. The application should be made at least five days before commencement and the estimated tax deposited.

Example 2 — 60-day event

A supplier applies for 60 days. Since the requested period is below 90 days, the initial validity can cover the specified period, subject to the statutory conditions.

Example 3 — 120-day event

A CTP requests 120 days. The initial registration is limited by the 90-day statutory maximum. If the activity legitimately continues, an extension can be requested within the permitted framework.

Example 4 — extension

The original registration expires after 80 days but the event needs another 50 days. The taxpayer should apply for extension before expiry and deposit the additional estimated tax required for the extension.

Example 5 — foreign exhibitor

A foreign business without an Indian fixed place makes taxable supplies at an Indian exhibition. The NRTP framework should be examined, including the advance deposit and Indian authorised-signatory requirements.

Example 6 — long exhibition

An exhibition continues for 200 days. Circular 71/45/2018-GST says the person cannot continue as CTP and must obtain normal registration.

Example 7 — fixed office

A business initially planned a temporary event but subsequently takes a permanent office in the State. The factual basis for CTP status should be reassessed.

Example 8 — advance tax vs final liability

Estimated GST is ₹8 lakh and ₹8 lakh is deposited. Actual final liability after eligible ITC may differ. The taxpayer must reconcile the final liability through the ordinary GST compliance process.

Example 9 — no advance deposit for ordinary registration

A long-running exhibition requires normal registration under the CBIC clarification. The CTP advance-tax requirement does not apply to the normal registration route.

Example 10 — expiry overlooked

A taxpayer continues making taxable supplies after CTP registration expires without obtaining extension or normal registration. This creates a compliance risk and should be prevented through an expiry tracker.

18. Professional workflow

19. Internal controls

20. Documentation checklist

• Nature of business and CTP/NRTP eligibility note.
• Event/exhibition/project agreement.
• Proof of temporary premises or allotment letter.
• REG-01/REG-09 and applicable supporting documents.
• Advance-tax computation.
• Electronic cash ledger deposit evidence.
• GST registration certificate.
• Validity/expiry date tracker.
• Extension application and additional deposit, if any.
• Sales and purchase records.
• GST returns and tax-payment records.
• Final reconciliation of advance deposit and actual liability.
• Normal registration documents if the activity crosses into the ordinary-registration framework.

21. Common mistakes

• Applying after commencement instead of at least five days before commencement.
• Assuming CTP registration automatically lasts for 90 days in every case even when a shorter period was requested.
• Requesting 120 days and assuming the initial certificate can exceed 90 days.
• Forgetting the additional advance deposit when applying for extension.
• Applying for extension after the original registration expires.
• Continuing an exhibition beyond 180 days under CTP status.
• Ignoring a newly created fixed place of business.
• Treating advance tax as an additional tax instead of an advance payment against liability.
• Failing to reconcile the electronic cash ledger after completion.
• Assuming an NRTP can use the ordinary domestic registration process without the special requirements.

22. Related provisions