The provisions for the grant of GST registration to Casual Taxable Persons (CTP)
and Non-Resident Taxable Persons (NRTP) are outlined in Section 27 of the CGST Act,
read with Rules 13 and 15. Here is a detailed breakdown:
Common Provisions for CTPs and NRTPs
1. No Threshold Exemption: Unlike regular taxpayers, CTPs and NRTPs cannot
avail the threshold exemption limit.
2. Pre-registration Requirement: They must apply for registration at least
five days before commencing business in India.
3. Taxable Supplies: CTPs and NRTPs are allowed to make taxable supplies
only after registration.
4. Advance Deposit of Tax: They must deposit an advance tax amount
equivalent to their estimated tax liability for the registration period.
5. Registration Validity: Initial registration is valid for up to 90 days,
which can be extended for another 90 days if required.
6. Verification: Applications are subject to verification as per Rules 9
and 10 for the grant of registration.
Differences between CTP and NRTP
Criteria Casual Taxable Person (CTP) Non-Resident Taxable Person (NRTP)
Fixed Place of Business No fixed place of business in the state/UT where they
supply, though they might have one in another state/UT No fixed place of
business or residence in India at all
Business Requirement Must undertake transactions for the furtherance of business
The business test is not applicable
PAN Requirement Requires a PAN Not required to have a PAN, registration is
based on other documents (e.g., passport)
Application Form Uses Form GST REG-01 Uses Form GST REG-09
Input Tax Credit (ITC) Eligible for ITC on all inward supplies Eligible only for
ITC on import of goods/services
Return Forms Files returns in GSTR-1, GSTR-2, and GSTR-3 Files returns in
GSTR-5
Amendment of Registration (Section 28, Rule 19)
• Application for Amendment: Any change in the registered information
must be updated at the GST portal within 15 days.
• Core vs Non-Core Fields:
• Core Fields: Includes changes to legal name, principal place of
business, additional places of business, and significant changes in ownership
structure.
• Non-Core Fields: Other non-essential changes that do not impact core
details.
• PAN Change: Any amendment applicable to the PAN will affect all
registrations associated with that PAN.
• Automatic Approval: If the officer does not respond to the application
within specified timeframes (15 days initially, 7 additional days after a
response), the amendment is automatically approved.
Cancellation and Suspension of Registration (Section 29, Rules 20-22)
• Circumstances for Cancellation:
• By application of the taxpayer or their legal heirs (in case of death).
• Suo Motu by a proper officer if the business has been discontinued, or
due to contraventions like non-compliance with filing returns, fraud, or violation
of GST provisions.
• Deemed Cancellation: Cancellation under SGST/UTGST law results in
cancellation under CGST as well.
• Effect of Cancellation:
• Does not relieve liability for past dues.
• Any remaining ITC on capital goods or machinery must be paid off,
either as per ITC claimed or tax on transaction value.
• Suspension: Pending cancellation proceedings, registration may be
temporarily suspended, and the registered person cannot make taxable supplies or
claim refunds.
Revocation of Cancellation (Section 30, Rule 23)
• If registration was cancelled by the proper officer, the taxpayer can
apply for revocation within 30 days of the cancellation order. Any outstanding
filings must be completed before applying for revocation. The proper officer may
either revoke the cancellation (in Form GST REG-22) or issue a Show Cause Notice
(Form GST REG-23) if not satisfied with the application.
Aggregate Turnover
Aggregate turnover is the total of:
1. Taxable supplies (excluding inward supplies).
2. Exempted supplies, including non-taxable supplies.
3. Exports of goods or services.
4. Inter-state supplies.
5. Supply of goods by registered job workers post-job work completion.
Exclusions:
• CGST, SGST, UTGST, IGST, and Compensation Cess are not part of the
turnover.
Valuation of Taxable Supply (Section 15)
The value of supply is generally based on the transaction value under Section 15 of
the CGST Act:
1. Transaction Value (Sec 15(1)): The actual price paid/received where the
supplier and recipient are not related, and the price is the only consideration.
2. Inclusions (Sec 15(2)): Certain elements like other taxes (except GST),
payments to third parties, incidental expenses, interest/penalties on delayed
payments, and subsidies (excluding government-provided) are included in the
transaction value.
3. Exclusions for Discounts (Sec 15(3)): Discounts recorded on invoices
(either before or at the time of supply) or post-supply discounts under a pre-
agreed contract are not included in the value of supply if the recipient reverses
related ITC.
This detailed overview covers key GST registration provisions for CTPs and NRTPs,
conditions for amendments, cancellation, and valuation of taxable supply, as
outlined under the CGST Act.
