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Quick Snapshot
Casual Taxable Person refers to an Indian resident that sometimes supplies goods or services in a state where they do not have any fixed establishment. The Non-Resident Taxable Person means a non-resident person who has no business establishment or residential address anywhere in India. These two are required to be registered with GST compulsorily prior to initiating the supply of goods, deposit advance tax and file return for the time during which they operate. The main difference between these two is that the former has residence status and is eligible for full ITC.
Who is a Casual Taxable Person (CTP)?
CTP 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.
Example for Understanding: Assume there is a trader Harilal in Delhi. He wants to participate in an exhibition or a trade fair in Punjab but he is registered in Delhi. Thus, here a problem arises that how will he supply goods from Punjab when doesn’t possess any registration in Punjab and doesn’t have a place of business in Punjab? So, to be able to supply goods from Punjab, he can take registration as a CTP in Punjab. Remember, he is a resident of India and a registered person in Delhi. He took registration for occasional supplies from Punjab valid for a defined period of time only.
Who is Non-Resident Taxable Person (NRTP)?
NRTP means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
Example for Understanding: Assume, Joe is a Trader in USA. He wants to participate in a trade fair or exhibition in Mumbai but he does not have a GST registration and residence in India. Thus, here problem arises that how will he supply goods from Mumbai? So, to be able to supply goods from Mumbai, he can take registration as NRTP in Mumbai. Remember, he is non-resident and does not have a registration as well as residence in India. He took registration for occasional supplies from Mumbai valid for a defined period of time only.
Special registration provisions pertaining to CTP and NRTP are as follows:
1. Both CTP & NRTP have to get mandatorily registered irrespective of turnover at least 5 days prior to commencement of business.
2. Registration certificate granted is valid for earlier of below:
i. Period specified in the registration application
ii. 90 days from the effective date of registration (further extendable by 90 days on making an application before the expiry on deposit of additional advance tax)
3. While submitting the application for registration, they have to make advance deposit of tax equivalent to the estimated tax liability.
Important: The advance tax which a CTP is required to deposit should be equal to estimated net tax liability, which is after adjusting any Input Tax Credit available.
CTP vs NRTP: Differences
| Particulars | CTP | NRTP |
|---|---|---|
| Application form for registration | FORM GST REG-01 | FORM GST REG-09 |
| Application form for extension of registration | FORM GST REG-11 | FORM GST REG-11 |
| ITC Availability | On all inward supplies | Only in respect of import of Goods |
| Returns | GSTR-1 (11th of the next month) & GSTR-3B (20th of the next month) as normal taxpayers | GSTR-5 (13th days of the next month or 7th day after the last day of the validity of registration, whichever is earlier) |
| PAN Requirement | Required | Not required (passport-based) |
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