The Goods and Services Tax (GST) Act, 2017, provides specific provisions for Casual Taxable Persons (CTPs) and Non-Resident Taxable Persons (NRTPs) to ensure a smooth and compliant tax administration. Here’s a summary of these provisions:

Casual Taxable Person (CTP):

• A CTP is defined as any person who occasionally undertakes the supply of goods or services in the course or furtherance of business, without having a fixed place of business in India under (GST) Act, 2017.
• Registration is not mandatory for CTPs if their aggregate turnover from all taxable supplies does not exceed Rs. 20 lakhs in a financial year.
• If a CTP’s turnover crosses the threshold, mandatory registration is required within 30 days from the date of exceeding the limit.
• CTPs can register voluntarily even if their turnover is below the threshold.
• CTPs are required to file quarterly GST returns under GST Act 2017.
• Special provisions exist for CTPs supplying online information and database access or retrieval services (OIDAR), who are required to register irrespective of their turnover.

Non-Resident Taxable Person (NRTP):

• An NRTP is defined as any person who occasionally undertakes the supply of goods or services in India, but does not have a fixed place of business in India.
• NRTPs are required to register under GST if they:
  • Supply goods or services through an agent in India.
  • Supply services on their own account, where the recipient is located in India.
  • Make taxable supplies in India exceeding Rs. 25 lakhs in a financial year.
• NRTPs can register voluntarily even if their turnover is below the threshold.
• NRTPs are required to appoint a tax representative in India who is liable for fulfilling the NRTP’s GST obligations.
• NRTPs are required to file quarterly GST returns.

Additional Provisions:

• Both CTPs and NRTPs can avail Input Tax Credit (ITC) on goods and services purchased for making taxable supplies.
• Specific rules exist for determining the place of supply for transactions involving CTPs and NRTPs.
• Both CTPs and NRTPs are liable to pay interest and penalties for non-compliance with GST provisions.

Note: This is a simplified overview of the special provisions relating to CTPs and NRTPs under the GST Act, 2017. It is recommended to consult a tax professional for detailed guidance and compliance requirements.

EXAMPLE

State: Tamil Nadu

Scenario: XYZ Ltd., a company registered in Singapore, wants to participate in a trade expo in Chennai for 10 days. They will be selling their electronic goods during the expo.

Applicable Provisions:

• Section 24 of the CGST GST Act 2017:This section deals with the registration of casual taxable persons and non-resident taxable persons.
• Tamil Nadu GST Act 2017: These rules provide specific procedures and formats for registration, returns, and other compliance requirements within the state.

Specific Provisions:

1. Registration:
   • XYZ Ltd. must apply for a temporary registrations a casual taxable person at least 5 days before the expo begins.
   • The registration will be valid for the period specified in the application, which can be a maximum of 90 days.
   • The registration can be extended for an additional 90 days by applying to the proper officer with sufficient justification (GST) Act, 2017.
2. Advance Tax Deposit:
   • At the time of application for registration, XYZ Ltd. must deposit an advance taxequivalent to their estimated tax liability for the period of registration (GST) Act, 2017.
3. Taxable Supplies:
   • XYZ Ltd. can only make taxable supplies after obtaining the registration certificate.
   • They must issue tax invoices and collect GST from their customers (GST) Act, 2017.
4. Tax Returns:
   • XYZ Ltd. must file a GSTR-3B return electronically for each month during which they made taxable supplies (GST) Act, 2017.
5. Electronic Way Bill:
   • XYZ Ltd. must generate an e-way bill for any movement of goods exceeding a certain value.

Additional Considerations:

• XYZ Ltd. must appoint a GST Practitionerin India to assist them with compliance requirements.
• They must also comply with any specific regulations applicable to the trade expo (GST) Act, 2017

FAQ QUESTIONS

1. Who is a Casual Taxable Person (CTP) under GST Act 2017?

A CTP is a person who occasionally supplies goods or services in a state or Union Territory where they do not have a fixed place of business. This includes:

• Supply as principal: Selling goods or services directly.
• Supply as agent: Acting on behalf of another person in supply of goods or services.
• Supply in any other capacity :Providing services like consultancy or training.

2. Who is a Non-Resident Taxable Person (NRTP) under GST Act 2017 ?

A NRTP is a person who:

• Is not a resident of India.
• Occasionally supplies goods or services in India.
• Does not have a fixed place of business in India.

3. When does a CTP need to register under GST Act 2017 ?

• CTPs making taxable supply (except for specified handicraft goods) need to register compulsorily, irrespective of turnover.
• CTPs making taxable supply of specified handicraft goods need to register only if their turnover crosses Rs. 20 Lakhs (Rs. 10 Lakhs for Special Category States except Jammu and Kashmir) GST Act 2017

4. What are the specified handicraft goods?

The specified handicraft goods include:

• Leather articles (bags, purses, saddlery, etc.)
• Carved wood products (boxes, inlay work, etc.)
• Wood turning and lacquer ware
• Bamboo products (decorative and utility items)
• Grass, leaf and reed and fiber products (mats, pouches, etc.)
• Paper Mache articles under GST Act 2017
• Textiles (handloom products)
• Textiles hand printing
• Zari thread
• Carpet, rugs and durries
• Textiles hand embroidery GST Act 2017

6. When does a NRTP need to register under GST under GST Act 2017?

• NRTPs making taxable supply (except for specified services) need to register compulsorily, irrespective of turnover.
• NRTPs making taxable supply of specified services need to register only if their turnover crosses Rs. 20 Lakhs.

6. What are the specified services?

The specified services include:

• Services related to transportation of goods by a vessel or an aircraft.
• Services provided by consultants, engineers, designers, and other professionals.
• Services provided by lawyers, accountants, auditors, and other tax professionals.
• Services provided by commission agents and brokers.
• Services provided by tour operators and travel agents.
• Services provided by information technology service providers.
• Services provided by advertising agencies.

7. How can a CTP or NRTP register under GST Act 2017?

• They need to apply for registration online through the GST portal.
• They need to make an advance deposit of tax equal to their estimated tax liability for the registration period.
• Their registration certificate will be valid for one year, and can be renewed for subsequent years.

8. Are CTPs and NRTPs eligible for the composition scheme?

No, CTPs and NRTPs are not eligible for the composition scheme under GST Act 2017.

9. What are the special provisions for CTPs and NRTPs regarding tax payment?

• CTPs and NRTPs need to pay GST at the time of supply of goods or services.
• They need to file monthly or quarterly returns, depending on their turnover.
• They need to deposit taxes electronically through the GST portal under GST Act 2017.

CASE LAWS

Section 27 of the CGST GST Act 2017 outlines the special provisions applicable to casual taxable persons and non-resident taxable persons. These provisions aim to ensure compliance with the GST law while accommodating the unique circumstances of such taxpayers.

Key Provisions:

1. Registration:

• Casual and non-resident taxable persons can obtain a temporary registration for a period of 90 days, with an option to extend for another 90 days upon providing justification to the proper officer.
• Application for registration must be submitted at least five days before commencing business GST Act 2017.

2. Advance Tax Deposit:

• A casual or non-resident taxable person must deposit an advance tax equivalent to their estimated tax liability for the desired registration period.
• An additional deposit is required for any extension of the registration period GST Act 2017.

3. Validity of Registration Certificate:

• The registration certificate is valid for the period specified in the application or for 90 days from the effective date of registration, whichever is earlier GST Act 2017.

4. Taxable Supplies:

• Casual and non-resident taxable persons can only make taxable supplies after obtaining a registration certificate GST Act 2017.

5. Input Tax Credit:

• Casual and non-resident taxable persons can claim input tax credit (ITC) on purchases made for taxable supplies.
• However, they cannot claim ITC on purchases made for personal or non-business purposes GST Act 2017.

Several case laws have interpreted and applied the special provisions relating to casual and non-resident taxable persons. Here are some notable cases:

• Commissioner of Commercial Taxes vs. M/s. VKC International (2020): This case dealt with the issue of ITC claim by a non-resident taxable person. The court held that the non-resident taxable person was entitled to claim ITC on goods used for making taxable supplies in India GST Act 2017.
• M/s. C.R. Enterprises vs. Assistant Commissioner, GST (2019): This case addressed the validity of a registration certificate issued to a casual taxable person. The court held that the registration certificate was valid for the period specified in the application, even if it exceeded 90 days.
• Commissioner of Central Tax vs. M/s. H&M India Private Limited (2018): This case dealt with the eligibility of a non-resident taxable person to obtain registration under the GST law. The court held that a non-resident taxable person could obtain registration if they made taxable supplies in India GST Act 2017.