Special provisions relating to casual taxable person and non-resident taxable person [ Section 27 ] - GST Ready Reckoner - GST

Special provisions relating to casual taxable person and non-resident taxable person Section 27 of CGST Act provides that: The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier and such person shall make taxable supplies only after the issuance of the certificate of registration: Provided that the proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of 90 days by a further period not exceeding ninety days. A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under section 25(1) , make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought: Provided that where any extension of time is sought under section 27(1), such taxable person shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought. The amount deposited under section 27(2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided under section 49. Casual Taxable Person : In terms of Section 2(20) of the CGST Act , casual taxable person 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. Grant of registration to non-resident taxable person : Rule 13 of CGST Rules provides that: A non-resident taxable person shall electronically submit an application, along with a self-attested copy of his valid passport, for registration, duly signed or verified through electronic verification code, in FORM GST REG-09 , at least five days prior to the commencement of business at the common portal either directly or through a Facilitation Centre notified by the Commissioner: Provided that in the case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its Permanent Account Number, if available. A person applying for registration as a non-resident taxable person shall be given a temporary reference number by the common portal for making an advance deposit of tax in accordance with the provisions of section 27 and the acknowledgement under rule 8(5) shall be issued electronically only after the said deposit in his electronic cash ledger. The provisions of Rule 9 and Rule 10 relating to the verification and the grant of registration shall, in the same manner shall apply to an application submitted under this rule. Grant of registration to a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient: Rule 14 of the CGST Rules provides that : Any person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient [ or any person supplying online money gaming from a place outside India to a person in India w.e.f. 01 st October, 2023] shall electronically submit an application for registration, duly signed or verified through electronic verification code, in FORM GST REG-10 , at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. [ Rule 14(1) ] The applicant referred to in rule 14(1) shall be granted registration, in FORM GST REG-06 , subject to such conditions and restrictions and by such officer as may be notified by the Central Government on the recommendations of the Council. [ Rule 14(2) ] Extension in period of operation by casual taxable person and non-resident taxable person:- Rule 15 of the CGST Rules provides that: Where a registered casual taxable person or a non-resident taxable person intends to extend the period of registration indicated in his application of registration, an application in FORM GST REG-11 shall be submitted electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner, by such person before the end of the validity of registration granted to him. [ Rule 15(1) ] The application under rule 15(1) shall be acknowledged only on payment of the amount specified in section 27(2). [ Rule 15(2) ] Input Tax Credit can be availed by Non-resident taxable person ? Input tax credit shall not be available in respect of goods or services or both received by a non-resident taxable person except on goods imported by him. The taxes paid by a non-resident taxable person shall be available as credit to the respective recipients. Which type of return required to be filled by Non - resident taxable person . The non-resident taxable person shall furnish a return in FORM GSTR-5 electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, including therein the details of outward supplies and inward supplies. Non- Resident Taxpayers need to file return in Form GSTR-5 for the period for which they have obtained registration within a period of seven days after the date of expiry of registration. In case, validity of registration is more than one month, monthly return (s) should be) should be filed by 13th of the month (applicable from October 2022) and 20th of the month(for return periods from July 2017 till Sep 2022) succeeding the tax period or within seven days of closing the business whichever is earlier. Advance payment of tax by non-resident taxable person : A non-resident taxable person is required to make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which registration is sought. Registration rules circulated by the GST council have specified that every person registered as a non-resident taxable person is required to deposit tax in advance on presumption basis. This advance tax will get credited into the Electronic Cash Ledger and will eventually get adjusted against the actual tax liability at the time of return filing. A Non-resident taxable person eligible for Refund and how can he apply refund of any balance of the advance tax paid by him . Non-resident taxable person is eligible for the refund for any balance of the advance tax deposited by him after adjusting tax liability. The amount of advance tax deposited by a non-resident taxable person at the time of initial registration/ extension of registration, will be refunded only after the person has furnished all the returns required in respect of the entire period for which the certificate of registration granted to him had remained in force. Refund can be applied in the serial no. 13 of the FORM GSTR -5 return required to be furnished by him, along with filing of Form GST RED 01 . Difference between casual taxable person and non-resident taxable person : Major Differences are as follows: TRANSACTIONS INVOLVED : - In case of casual taxable person, they occasionally undertakes transactions involving supply of goods or services in a state or UT where he has no fixed place of business WHEREAS, in case of non-resident taxable person, they occasionally undertakes transactions involving supply of goods or services but has n fixed place of business residence in India. PAN NUMBER: - In case of casual taxable person, they have a PAN number WHEREAS, in case of non-resident taxable person, they do not have a PAN number; a non-resident person having PAN, may take registration as a casual taxable person. APPLICATION FORM FOR REGISTRATION :- In case of casual taxable person, same application Form for registration as for normal taxable persons viz Form GST REG-01 WHEREAS, in case of non-resident taxable person, separate registration Form required i.e., FORM GST REG-09. INPUT TAX CREDIT: - In case of casual taxable person, they may claim ITC for all inward supplies WHEREAS, in case of non-resident taxable person, they may get ITC only in respect of import of goods/services. RETURN FILING :- In case of casual taxable person, to file normal FORMS GSTR-1 and GSTR-3B WHEREAS, in case of non-resident taxable person, they are required separate simplified return in the FORM GSTR-5. Important Notification Circular Proper officer for provisions relating to Registration and Composition levy under the Central Goods and Services Tax Act, 2017 or the rules made thereunder. [ Circular No.1/1/2017 dated 26.06.2017 ]