A guide to the Casual Taxable Person (CTP) under GST, covering registration requirements, advance tax deposits, return filing, and refund procedures.
A Casual Taxable Person (CTP) is an individual who occasionally provides taxable goods or services within a taxable region where they lack a permanent business location. This individual may operate as a principal, agent, or in any other capacity to supply goods or services for business development. For instance, if Mr. Ravi, based in Bangalore, offers management consulting in Hyderabad without a fixed presence there, he must register as a CTP in Hyderabad before beginning these services.
It’s important to note that the term “person” encompasses various entities, including individuals, Hindu Undivided Families (HUFs), companies (including government-owned), firms, limited liability partnerships, associations of persons, bodies of individuals, co-operative societies, local authorities, and government bodies. The principal place of business refers to the location designated as such in the registration certificate.
Registration Requirements for Casual Taxable Persons
Obligatory GST registration typically applies when a supplier’s aggregate annual turnover exceeds INR 40 lakhs. However, certain suppliers, including Casual Taxable Persons (CTPs), are mandated to register irrespective of their turnover, meaning the INR 40 lakhs threshold does not apply.
- CTPs are ineligible for the composition scheme.
- A casual taxable person must complete their registration a minimum of five days before commencing business activities.
- CTPs must secure a temporary registration, valid for a maximum of 90 days, in the state where they intend to make supplies.
- An advance deposit of GST, estimated based on their projected tax liability, is required from CTPs.
For example, if Mr. Ravi anticipates his taxable services to be INR 100,000, he must deposit INR 18,000 (18% of INR 100,000) in advance to secure temporary registration.
It should be noted that individuals supplying specific handicraft items are exempt from CTP registration; they only need GST registration if their total annual turnover exceeds INR 20 lakhs.
The Registration Process
The process for registration involves submitting the required forms.
Extension of Registration Period
To extend a CTP registration, an application must be submitted using FORM GST REG-11 before the current registration’s expiry date. This extension can be granted for an additional period, not exceeding 90 days, and is contingent upon the deposit of any extra tax liability incurred during the extended period.
Returns to be Filed
Casual taxable persons must file the subsequent returns:
| Form | Due Date |
|---|---|
| Form GSTR-1 (Details of outward supplies) | On or before the 11th of the next month |
| Form GSTR-3B (Summary of ITC, purchases, tax liability) | On or before the 20th of the next month |
However, if a CTP chooses the Quarterly Return Monthly Payment (QRMP) scheme, they are required to file IFF/GSTR-1 and GSTR-3B on a quarterly basis. Unlike regular registered taxpayers, casual taxable persons are not obligated to submit an annual return. All forms can be submitted via the common portal, either directly or through a Commissioner-notified Facilitation Centre.
Refund Eligibility for Casual Taxable Persons
CTPs can claim a refund for any excess amount deposited beyond their actual tax liability. This refund is processed once all required returns for the registration period have been successfully filed. Applications for refunds of excess balances in the electronic cash ledger can be submitted using Form GST RFD-01, specifically under the category “Refund of excess balance in the electronic cash ledger.”
