Section 27 Of CGST Act 2017: Special Provisions Relating To Casual Taxable Person And Non-Resident Taxable Person

What does Section 27 say?

Section 27 of the CGST ACT 2017 talks about special provision relating to grant of GST Registration to Casual Taxable Person and Non-Resident Taxable Person, also covering the provisions which the casual taxable person and non-resident taxable person has to follow.

Let us understand through GST Law reference as described below

• 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 ninety days by a further period not exceeding ninety days.
• (2) A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under sub-section (1) of section 25, 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 sub-section (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.
• (3) The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided under section 49.

GIST OF ABOVE GST LAW

• Period of Registration: The GST Registration Granted to Casual Taxable Person and Non-Resident Taxable person shall be valid for ninety days or the period specified in the application for registration whichever is earlier.
• Extension of Registration: The GST Registration can be extended for more ninety days on sufficient cause being provided to the Proper Officer.
• Tax Deposition: The Casual Taxable Person or Non-Resident Taxable Person has to deposit advance tax upon submission of the application for registration on an estimated tax liability basis. Additional Tax Liability has to be deposited where any time extension has been granted.
• Electronic Cash Ledger: The amount deposited shall be credited to the electronic cash ledger which can be utilized in a manner provided under section 49.

GST RULES ON CASUAL TAXABLE PERSONS AND NON-RESIDENT TAXABLE PERSONS

Rule 8: Application for Registration

• FORM GST REG01: Application for Registration
• FORM GST REG02: Acknowledgement

Rule 13: Grant of Registration to Non-Resident Taxable Person

• FORM GST REG03: Notice for Seeking Additional Information/Clarification/Documents relating to Application for Registration, Amendment, Cancellation.
• FORM GST REG04: Clarification/Additional Information/Documents for Registration, Amendment, Cancellation.
• FORM GST REG 05: Order of Rejection of GST Application.
• FORM GST REG 06: Certificate of GST Registration.
• FORM GST REG 09: Application for Registration of Non-Resident Taxable Person.

Rule 15: Extension of Period

• FORM GST REG-11: Application for Extension of Registration.

Rule 89: Application for Refund of Tax, Interest, Penalty, Fees or any other amount

• FORM GST RFD01: Application for GST Refund.

FAQ ON CASUAL TAXABLE PERSON AND NON-RESIDENT TAXABLE PERSON

Q1. Definition of Casual Taxable Person?

Ans. Casual Taxable Person means a person who occasionally undertakes transactions involving the supply of Goods or Services or Both in the course or furtherance of business whether as a principal, agent or in any other capacity in a state or union territory where he has no fixed place of business.

Q2. Definition of Non-Resident Taxable Person?

Ans. Non-Resident Taxable Person a person who occasionally undertakes transactions involving the supply of Goods or Services or Both in the Course or Furtherance of Business whether as a principal ,agent or in any other capacity but who has not fixed place of business or residence in India.

Q3. What is the Validity of Certificate of Registration Granted?

Ans. 90 days or Time mentioned in Certificate whichever is earlier.

Q4. Whether Extension of Period is Possible?

Ans. Yes on providing sufficient cause to the proper officer further 90 days can be extended.

Q5. Whether any tax has to be deposited upon application of registration?

Ans. Yes, advance tax has to be deposited.

In the above article, we have talked about Casual Taxable Persons and Non-Resident Taxable Person, its provision under the GST Law and relevant sections, rules as per GST ACT 2017.

Disclaimer: The above-said article is the author's viewpoint only, please refer to respective sections and rules framed under GST Law.