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A Casual Taxable Person (CTP) under GST is someone who doesn’t have a fixed place of business in a particular state or union territory but still wants to sell goods or offer services there – even if it’s just for a short time.
This could be an individual or a business that shows up at events like trade fairs, exhibitions, or seasonal markets.
Even though they don’t operate there regularly, they still need to register under GST and follow all the usual rules. Whether they’re selling on their own behalf or representing someone else, they’re treated just like any regular taxpayer – just on a temporary basis.
Let’s say Mr. Ravi runs a management consultancy firm in Bangalore. One day, he gets an invitation to speak and offer his consulting services at a business conference in Chennai. Now, Ravi doesn’t have an office or any fixed setup in Chennai—he's just going there for the event.
Since he’ll be providing taxable services in a state where he doesn’t have a regular place of business, GST law requires him to register as a Casual Taxable Person in Chennai before he starts offering those services.
Under the GST system, businesses need to register when they start supplying taxable goods or services and their total turnover crosses a certain limit—usually ₹40 lakhs in a financial year for most states. But there are some exceptions where registration is mandatory, no matter how small the turnover is. One such case is a Casual Taxable Person (CTP). Even if a CTP is doing business for just a few days or for a one-time event, they must register under GST before starting operations in that particular state.
If you're planning to do business temporarily in a state where you don’t have a fixed place of operations, you’ll be treated as a Casual Taxable Person (CTP) under GST. And here’s the catch—unlike regular businesses that only need to register after crossing the ₹40 lakh turnover mark, a CTP must register under GST right from the start, no matter how small the turnover.
Basically, if you’re supplying goods or services even for a short period in another state, GST registration becomes mandatory before you begin.
CTPs don’t get the benefit of the Composition Scheme either. This scheme is usually available to small businesses to simplify their GST filings and reduce tax rates, but it's strictly meant for regular taxpayers.
Since Casual Taxable Persons deal with occasional or short-term business, they’re expected to follow the normal GST rules—which includes charging proper GST, filing returns, and paying taxes like any full-time business.
Planning ahead is important. As a CTP, you need to apply for GST registration at least 5 days before you start your business activity in the target state. This gives the GST department enough time to process your application and ensures you’re fully compliant before raising your first invoice.
The registration you get as a Casual Taxable Person isn’t permanent. It’s valid only for the period you mention while applying (up to a maximum of 90 days), and you can extend it once if needed.
Think of it as a temporary pass to do business in a different state—once your purpose is served, the registration expires.
A Casual Taxable Person is granted a provisional GST registration that remains valid for up to 90 days from the date of issuance.
This registration is specific to the period during which the CTP will be operating in that particular state or union territory. If the business extends beyond 90 days, the registration may be renewed.
Think of it as a temporary pass to do business in a different state—once your purpose is served, the registration expires unless an extension is applied for and approved.
When registering as a Casual Taxable Person (CTP), you're required to pay GST in advance, based on the expected turnover during your time of operation. This is a key condition for getting the temporary registration.
For example, let’s say you’re planning to offer services worth ₹1,00,000 in a particular state, and the applicable GST rate is 18%. In that case, you’ll need to deposit ₹18,000 upfront (that’s 18% of ₹1,00,000) as part of the registration process.
The GST registration given to a CTP isn’t permanent—it’s valid for 90 days from the date of issue. If needed, you can apply for an extension, but that too is limited.
This setup is perfect for businesses that operate only occasionally in different states—it keeps things compliant without locking you into a long-term GST commitment.
If you’re a handicraft seller, you don’t automatically fall under the Casual Taxable Person category. As long as your total annual turnover stays below ₹20 lakhs, you’re not required to register under GST.
This exemption is especially useful for small artisans and local craft businesses who sell occasionally or in limited quantities. It saves them from the hassle of registration and compliance that applies to larger or more frequent sellers.
Let’s take another look at Mr. Ravi’s situation. Assume he plans to offer management consultancy services in a different state and expects his taxable earnings from the assignment to be ₹1,00,000. Since he doesn’t maintain a permanent business location in that state—for instance, he's delivering services in Hyderabad while his office is in Bangalore—he is required to register as a Casual Taxable Person in Hyderabad.
To complete the registration process, Mr. Ravi must:
Once registered, he is allowed to operate in Hyderabad for a maximum of 90 days, after which he may need to extend or renew the registration if required.
Registering as a Casual Taxable Person under GST is a simple process, but it must be completed in advance to ensure compliance before commencing any business operations. Here is a step-by-step guide outlining how to register as a CTP:
Before starting the registration process, gather the following documents:
The GST department will verify the submitted details and documents.
Upon approval, you will receive the GST REG-06 certificate (GST registration certificate) on the GST portal.
If a Casual Taxable Person (CTP) needs to continue business beyond the initial 90-day registration period, they don’t have to start from scratch. Instead, they can apply for an extension right from the GST portal.
But here’s the important part — the request must be made before the current registration expires. Once approved, the GST system allows for an extension of up to another 90 days, giving the CTP more time to carry on business legally in the same state.
It’s a simple process, but timing is key—don’t wait until the last day to apply.
A Casual Taxable Person (CTP) is obligated to file specific GST returns as part of their compliance:
If the CTP has opted for the Quarterly Return Monthly Payment (QRMP) scheme, then they must submit IFF or GSTR-1 and GSTR-3B on a quarterly basis instead.
Note: CTPs are exempt from filing the annual return that is compulsory for regular GST-registered taxpayers.
All returns can be filed either online through the GST portal or at a Facilitation Centre designated by the Commissioner.
Sometimes, a Casual Taxable Person ends up paying more GST in advance than what they actually owe. This can happen when the estimated turnover and tax liability turn out to be higher than the actual business done during the registration period.
The good news? That extra amount doesn’t go to waste—it can be claimed back as a refund.
Once all your tax dues are cleared and your GST returns are filed, if there’s still money sitting in your electronic cash ledger, you’re eligible to get it back. The refund applies to the excess advance tax you paid while registering as a CTP.
If you've paid more GST in advance than what you actually owe, you can claim the extra amount back. To do this, simply file Form GST RFD-01 on the GST portal and choose the option “Refund of excess balance in electronic cash ledger.”
Just make sure you’ve filed all your GST returns for the period you were registered as a Casual Taxable Person — that’s a must before applying for the refund.
Once you’ve submitted your application, the GST department will review your claim. If everything’s in order, the excess amount will be credited back to your bank account.
This process ensures that CTPs can recover any excess tax they paid in advance, giving a fair closure once their actual liability is finalized.
A Casual Taxable Person (CTP) holds an important place within the GST framework, as it ensures that individuals or businesses providing goods or services in a state or union territory—without a permanent business location—adhere to GST compliance.
Mandatory registration, upfront GST payment based on estimated liability, and timely return filing help bring occasional suppliers in line with the responsibilities of regular taxpayers.
A CTP is required to complete registration at least five days prior to commencing operations, and this temporary registration is valid for up to 90 days, with the possibility of extension.
This system promotes uniformity and accountability within the tax structure. Moreover, the GST system allows CTPs to claim refunds of any excess advance GST deposit after the completion of their business activities, ensuring they are not financially burdened by overpayment.
While they are not eligible for the composition scheme, CTPs are still expected to maintain compliance with GST provisions, including filing periodic returns and making necessary deposits.
The flexibility offered by the GST system helps businesses with temporary or seasonal operations stay compliant, thus supporting the growth of businesses operating in multiple regions or offering occasional services.