# Registration of CTP & NRTP

Legal basis: Sections 25 & 27 read with Rules 13 & 15.

## 1. Definitions

### Casual Taxable Person [Sec 2(20)]

A person who occasionally undertakes transactions involving supply of goods/services/both in the course or furtherance of business — as principal, agent or in any other capacity — in a State/UT where he has no fixed place of business.

Cannot opt for composition levy.

### Non-Resident Taxable Person [Sec 2(77)]

Any person who occasionally undertakes transactions involving supply of goods/services/both — whether as principal, agent or otherwise — but who has no fixed place of business or residence in India.

Cannot opt for composition levy.

Key distinction: Business test (course/furtherance of business) applies to CTP but NOT to NRTP.

## 2. Compulsory Registration

Both CTP and NRTP must register compulsorily, irrespective of threshold limit, at least 5 days prior to commencement of business.

## 3. Mode of Application

Category	Mode
CTP	PAN-based, filed via Form GST REG-01
NRTP (Individual)	Self-attested passport copy + application signed/EVC-verified by authorised Indian resident signatory holding a PAN
NRTP (Business entity)	Tax Identification Number / unique number of home country / PAN if available; filed in a separate prescribed form

## 4. Period of Validity of Registration

Validity = earlier of:

1. Period specified in the registration application, OR

2. 90 days from the effective date of registration.

Extension: Can be extended further by a period not exceeding 90 days by making an application before the end of validity.

Verification/grant rules under Rules 9 & 10 apply mutatis mutandis.

## 5. Advance Deposit of Tax (Sec 27(2))

While submitting the registration application, CTP/NRTP must make an advance deposit equivalent to estimated tax liability for the registration period.
A Temporary Reference Number (TRN) is issued for making this deposit, which is credited to the electronic cash ledger.
Acknowledgement of application issued only after deposit.
Advance deposit must consider eligible ITC available to CTP.
For extension of validity, additional deposit for the extended period is required.

Worked example

### Example 1

Example 1 (CTP): Mr. K, a Karnataka-resident jeweller, intends to participate in a 10-day trade fair in Mumbai starting 1st December.

→ He is a CTP in Maharashtra (no fixed PoB there).

→ Must register at least 5 days prior = by 25th November.

→ Must estimate tax on expected sales and pay advance deposit via TRN.

→ Validity = lesser of period sought (10 days) or 90 days = 10 days.

### Example 2

Example 2 (NRTP): A foreign company supplying online software services in India for 60 days, with no fixed place of business in India.

→ NRTP — registration compulsory, irrespective of turnover.

→ Application filed by authorised Indian signatory with PAN.

→ Cannot opt for composition.

### Example 3

Example 3 (Extension): A CTP registered for 60 days, wants to continue for 40 more days.

→ Must apply for extension before validity expires.

→ Maximum extension permitted = 90 days.

→ Must pay additional advance deposit for the extended 40-day period.

⚠️ Common exam mistakes

Applying the 'business test' to NRTP — it applies only to CTP. An NRTP need not be supplying in furtherance of business.
Believing CTP/NRTP can opt for composition levy — they cannot.
Calculating the 5-day pre-commencement window from the date of application instead of date of commencement of business.
Forgetting that the 90+90 day cap is the maximum total validity; further extensions beyond this are not permitted.
Treating advance deposit as optional — it is mandatory and acknowledgement is issued only after deposit.

Bare-Act text Sections 25, 27; Rules 13 & 15 · CGST Act, 2017 · click to expand

Section 27(1): 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 90 days from the effective date of registration, whichever is earlier. Proviso: Proper Officer may, on sufficient cause being shown, extend the said period of 90 days by a further period not exceeding 90 days. Section 27(2): A CTP/NRTP shall, at the time of submission of application for registration, 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.

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Special Registration Provisions for Casual Taxable Persons (CTP) & Non-Resident Taxable Persons (NRTP)

Worked example

⚠️ Common exam mistakes