Section 27 and related rules provides for procedure for registration of NRTP/CTP

1^st Proviso Section 25(1)

CTP or a NRTP shall apply for registration in every such State/UT in which he is so liable

at least 5 days prior to the commencement of business

Question & Answer

Section 2(20)

“casual taxable person” 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 or a Union territory where he has no fixed place of business;

For complete guide on CTP, refer Section 2(20) for meaning of CTP

Section 24(ii) casual taxable persons making taxable supply

Section 24(ii) requires compulsory registration of CTP who is making taxable supplies, even if his aggregate turnover does not exceed threshold limit.

For complete guide, refer para 24.3 of Section 24

Provision of Section 25, Rule 8, 9 and rule 10 relating to application, verification and the grant of registration shall, mutatis mutandis, apply to an application submitted by CTP.

Please refer Para 25.7 of Chapter 25 for procedure of registration of CTP.

Please refer Section 2(77) for meaning of NRTP.

He cannot exercise the option to pay tax under composition levy.

NRTP may make supply for business or non-business purpose.

Section 25(7)

As per section 25(6), every person must have a PAN to be eligible for registration.

However, NRTP may be granted registration u/s 25(1) on the basis of such other documents as may be prescribed.

Rule 13(1)

NRTP shall electronically submit an application for registration,

duly signed or verified through EVC, in GST REG-09,

along with a self-attested copy of his valid passport, for registration,

at least 5 days prior to the commencement of business at the common portal.

As per section 25(6), every person must have a PAN to be eligible for registration. Since NRTP will generally not have a PAN of India, however as per section 25(7), he may apply in REG-09 along with self-attested copy of his valid passport.

Question & Answer

1^st Proviso to Rule 13(1)

In the case of a business entity incorporated or established outside India,

the application 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.

If NRTP is business entity, then tax identification number or unique number of that country or its PAN, is required for registration under GST

Rule 13(2)

NRTP shall be given a temporary reference number by the common portal for making an advance deposit of tax and

Ack of application in GST REG-02 u/sr 8(5) shall be issued electronically only after the said deposit in his electronic cash ledger.

Rule 13(3)

The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.

Rule 13(4)

The application for registration made by a NRTP

shall be duly signed or verified through EVC by his authorised signatory who shall be a person resident in India having a valid PAN.

Section 27(1)

RC issued to a CTP or a NRTP

shall be valid for the period earlier of

specified in the application for registration or

90 days from the effective date of registration, and

CTP/NRTP shall make taxable supply only after issue of RC

such person shall make taxable supplies only after the issuance of the RC.

Question & Answer

1^st Proviso to Section 27(1)

PO 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.

Rule 15(1)

Where CTP or NRTP intends to extend the period of registration,

an application in GST REG-11 shall be submitted electronically  by such person

before the end of the validity of registration granted to him.

Rule 15(2)

The application u/sr (1) shall be acknowledged only on payment of the amount specified u/s 27(2)

Circular No. 71/45/2018-GST dt. 26-10-2018

SN-2

Issue

As per section 27, period of operation by CTP is 90 days with provision for extension of same by the proper officer for a further period not exceeding 90 days.

Various representations have been received for further extension of the said period beyond the period of 180 days, as mandated in law.

Clarification

1. Registration as normal taxable person if exhibitions is more than 180 days

It is clarified that 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.

2. 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.

3. In such cases he would not be required to pay advance tax for the purpose of registration.

4. He can surrender such registration once the exhibition is over.

Section 27(2)

A CTP or a NRTP shall,

at the time of submission of application for registration u/s 25(1)

make an advance deposit of tax of estimated tax liability of such person for the period for which the registration is sought.

1^st Proviso to Section 27(2)

where any extension of time is sought u/ss (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.

Section 27(3)

The amount deposited u/ss (2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided u/s 49.

Circular No. 71/45/2018-GST dt. 26-10-2018

SN-1

Issue - Whether the amount required to be deposited as advance tax while taking registration as a CTP should be 100% of the estimated gross tax liability or the estimated tax liability payable in cash should be calculated after deducting the due eligible ITC which might be available to CTP?

Clarification

1. It has been noted that while applying for registration as a CTP, the GST REG-1 (S. No. 11) seeks information regarding the “estimated net tax liability” only and not the gross tax liability.

2. It is clarified that the amount of advance tax should be calculated after considering the due eligible ITC.

Question & Answer