27.1 Time limit for application of Registration by CTP or NRTP

Question-1 [ICMAI-I-Ch5-Example9]

Mr. Gold runs a retail shop for handmade jewellery and is registered in Chennai. Mr. Gold is planning to sell the jewellery at an exhibition in Mumbai, to be held from 1st January 2018 to 10th January 2018. Advise time with regard to registration and payment of GST.

Answer

Mr. Gold should apply for registration as a casual taxable person within 5 days prior to the date of commencing the exhibition on 1st January 2018. Mr. Gold should also make an advance deposit of the estimated tax liability for the period from 1st Jan 2018 to 10th Jan 2018.

Question-2 [ICMAI-I-Ch5-Example10]

M/s X Ltd is an advertising company located in Chennai and is registered as a normal taxable person there. Now, they have secured an assignment to manage digital marketing for the Koti Deepothsavam Festival, which will take place in Hyderabad, Telangana. This will require M/s X Ltd. to displace some resources in Hyderabad until the festival is over. Advise M/s X Ltd. to obtain for separate registration in the State of Telangana.

Answer

In this case, since M/s X Ltd does not have too many assignments coming from Hyderabad, they can register as a Casual Taxable Person in Telangana for 90 days. This will enable the organizers of the festival to take input credit on all GST paid to M/s X Ltd.

Question-3 [ICSI-E-J18-O-85-1]

A casual taxable person or a non-resident taxable person shall be required to apply for registration at least ................... days prior to the commencement of business.

 (A) 30; (B) 5; (C) 15; (D) 7

27.3.2 NRTP may apply in REG-09 with passport copy for registration

Question-1 [ICSI-E-D20-82-1]

A non-resident taxable person as per Rule-13 of the CGST Rules, 2017 shall submit an application in form number ------------ with a valid passport at least --- prior to the commencement of business.

(A) REG-1; 3 days; (B) REG-9; 5 days; (C) REG-5; 5 days; (D) REG-9; 3 days

27.4 Validity of Registration Certificate (RC) issued to CTP or NRTP

Question-1 [ICAI-I-Ch7-Ex17] [Validity Period of Certificate]

What is the validity period of the registration certificate issued to a casual taxable person and non- resident taxable person?

Answer

In terms of section 27(1) read with proviso thereto, the certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period specified in the application for registration or 90 days from the effective date of registration, whichever is earlier. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of 90 days by a further period not exceeding 90 days.

Question-1A [ICSI-E-D18-O-91-1]

The certificate of registration issued to casual taxable person or to a non-resident taxable person shall be valid for the period specified in the application for registration or for __________ days from the effective date of registration whichever is earlier. The validity of registration period on a request made by such taxable person may be further extended by the Proper Officer for a period not exceeding _______ days.

(A) 60, 45; (B) 90, 60; (C) 90, 90; (D) 90, 30

Question-2 [ICMAI-I-D19-1(d)(iv)-1] [Maximum validity period of certificate]

Registration certificate granted to CTP/NRTP will be valid for _____ days from the effective date of registration.

Question-2A [ICSI-E-D18-O-91-1]

Maximum validity period of certificate of registration issued to a casual and nonresident taxable person as per section 27 of the CGST Act, 2017 is:

(A) 90 days from the effective date of registration

(B) 180 days from the effective date of registration

(C) 365 days from the effective date of registration

(D) none of the above

Question-2B [ICSI-E-J22-91-1]

Maximum validity period of certificate of registration issued to a Casual Taxable person and Non-Resident Taxable person as per section 27 of the CGST Act, 2017 is:

(A) 90 days from the effective day of registration

(B) 180 days from the effective date of registration

(C) 365 days from the effective date of registration

(D) 60 days from the effective day of registration

27.7 Miscellaneous Questions

Question-1 [ICSI-E-D21-O-85-1]

Find the correct statement, in case of non- resident persons under section 27 of CGST Act, 2017?

(A) The certificate of registration issued to non-resident taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is later

(B) The proper officer may, on cause being shown by the said taxable person, extend the said period of ninety days by a further period not exceeding 45 days

(C) A non-resident taxable person 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

(D) All are false statements

Question-2 [ICAI-I-M19-8c-5]

Answer the following questions with respect to casual taxable person under the CGST Act, 2017:

(i) Who is a casual taxable person?

(ii) Can a casual taxable person opt for the composition scheme?

(iii) When is the casual taxable person liable to get registered?

(iv)What is the validity period of the registration certificate issued to a casual taxable person?

(v) Can the validity of registration certificate issued to a casual taxable person be extended? If yes, what will be the period of extension.

Answer

(i) Casual taxable person means a person who occasionally undertakes transactions involving supply of goods and/or services 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.

(ii) No, a casual taxable person cannot opt for the composition scheme.

(iii) A casual taxable person (CTP) is liable to obtain registration compulsorily under GST laws, at least5 days prior to commencement of business. However, threshold limit of Rs.20 lakh (Rs.10 lakh in case of Special Category States other than Jammu & Kashmir) is available in case of CT P making taxable supplies of specified handicraft goods.

(iv) The registration certificate issued to a casual taxable person will be valid for:

(a) the period specified in the registration application, or

(b) 90 days from the effective date of registration whichever is earlier.

(v) Yes, the validity of registration certificate issued to a casual taxable person can be extended. It can be extended by a further period not exceeding 90 days.

Question-3 [ICSI-P-J22-3c-4]

Mention the provision and features relating to Registration of non-resident taxable person under the CGST Act, 2017.

Answer

The various provisions and features relating to registration of a non-resident taxable person is as below:

1. Registration is mandatory for a non-resident (Section 24 of the CGST Act, 2017).

2. A non-resident taxable person shall apply for registration at least five days prior to the commencement of business (Section 25 of the CGST, 2017).

3. The certificate of registration issued to a non-resident taxable person shall be valid for the period specified in the application for registration or 90 days from the effective date of registration whichever is earlier, such person shall make taxable supplies only the issuance of certificate register.

4. 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 ninety days.

Quesiton-4 [ICAI-I-N18-12b-5]

Mr. Allan, a non-resident person, wishes to provide taxable supply of goods. He has no fixed place of business or residence in India. He      seeks your advise on the following aspects, relating to CGST Act, 2017:

(i) When shall he apply for registration?

(ii) Is PAN mandatory for his registration?

(iii) What is the period of validity of RC granted to him?

(iv) Will he be able to extend the validity of his registration? If yes, what will be the period of extension.

Answer

(i) Mr. Allan, being a non-resident person, should apply for registration, irrespective of the threshold limit, at least 5 days prior to the commencement of business.

(ii) No, PAN is not mandatory for his registration.

He has to submit a self-attested copy of his valid passport along with the application signed by his authorized signatory who is an Indian Resident having valid PAN.

However, in 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.

(iii) Registration Certificate granted to Mr. Allan will be valid for:

(a) Period specified in the registration application, or

(b) 90 days from the effective date of registration whichever is earlier.

(iv) Yes, Mr. Allan can get the validity of his registration extended. Registration can be extended further by a period not exceeding 90 days.