FAQs on requirements and procedure for submission of GST registration application by a Casual Taxable Persons (CTP).
Q1. Who is a Casual Taxable Person?
Ans. A Casual Taxable Person is someone who occasionally supplies goods or services in a State or Union Territory where they do not have a fixed place of business. This can be as a principal, agent, or in any other capacity, for business purposes.
Q2. Is GST registration mandatory for a Casual Taxable Person?
Ans. Yes, GST registration is compulsory for a Casual Taxable Person if they are making taxable supplies in India, regardless of their turnover, except for those supplying specified handicraft goods (for whom normal threshold limits apply).
Q3. Is there any threshold limit for registration for a Casual Taxable Person?
Ans. No, there is no threshold limit for GST registration for a Casual Taxable Person, except for individuals dealing in specified handicraft goods. They are required to register even for a single transaction.
Q4. Can a Casual Taxable Person opt for the composition scheme?
Ans. No, a Casual Taxable Person cannot choose to pay tax under the composition levy scheme.
Q5. When should I apply for Registration as a Casual Taxable Person?
Ans. You should apply for Registration as a Casual Taxable Person at least 5 days prior to the commencement of business in the concerned State or Union Territory.
Q6. How do I register as a Casual Taxable Person? I can’t find the option.
Ans. The option to register as a Casual Taxable Person is within the regular New Registration Application for normal taxpayers. In Part A of the New Registration Application, select ‘Taxpayer’. In Part B, specifically in the ‘Business Details’ section, you will find a question: “Are you applying for registration as a casual taxable person?”. Select “Yes”.
Q7. What is the procedure after selecting ‘Casual Taxable Person’ in the registration form?
Ans. After selecting ‘Yes’ for Casual Taxable Person in Part B of the New Registration Application, you need to: * Enter the estimated value of supplies and estimated net tax liability (CGST + SGST / IGST and Cess) for the registration period. * Click on the ‘GENERATE CHALLAN’ button. This option is also available after filling all tabs in Part B. * Make advance tax payment using available modes on the GST Portal. * Complete and submit Part B of the registration application. * Your registration will be granted after processing by the Tax Official.
Q8. Why am I prompted to fill a GST Challan as soon as I select the Casual Taxable Person option?
Ans. As a Casual Taxable Person, you are legally required to deposit tax in advance. This advance deposit must be equivalent to the estimated tax liability based on your estimated turnover for the registration period. The New Registration Application prompts you for this challan to ensure compliance with this requirement. A provisional GSTIN is generated and pre-filled in the challan, which remains provisional until your application is approved.
Q9. Is there a fixed amount I must deposit as advance tax?
Ans. No, there is no fixed amount. You are required to deposit an amount equivalent to your estimated tax liability. This is calculated based on your estimated turnover for the period you are seeking registration as a Casual Taxable Person.
Q10. How long is the Registration as a Casual Taxable Person valid?
Ans. The registration certificate for a Casual Taxable Person is valid for the period specified in your application or 90 days from the effective date of registration, whichever is earlier.
Q11. Can I extend my Registration as a Casual Taxable Person?
Ans. Yes, you can extend your registration once for an additional period of up to 90 days. To extend, you must apply for an extension before the expiry of your initial registration period.
Q12. What if my business is not concluded after the extended registration period expires?
Ans. If you have already extended your initial registration once and your business continues beyond this period, you are required to obtain registration as a normal taxpayer in the concerned State or Union Territory.
Q13. Can a Casual Taxable Person take multiple registrations in a State?
Ans. Yes, if you have multiple places of business within the same state, you can apply for multiple registrations as a Casual Taxable Person within that state for each business place.
Q14. I have deposited advance tax but do not want to continue the business. How can I get my money back?
Ans. You can apply for a refund of the advance tax deposit when you file your application for surrender of registration.
Q15. Can a Casual Taxable Person claim Input Tax Credit (ITC)?
Ans. Yes, a Casual Taxable Person is eligible to claim Input Tax Credit (ITC) on inward supplies, including inputs, capital goods, and input services, similar to a regular taxpayer.
Q16. What returns are required to be filed by a Casual Taxable Person?
Ans. A Casual Taxable Person needs to file returns in FORM GSTR-1 and FORM GSTR-3B. The frequency of filing depends on whether they opt for the QRMP scheme. They are also required to file FORM GSTR-10 (Final Return) after surrendering the registration. Annual returns are not required for Casual Taxable Persons.
Q17. Can a Casual Taxable Person get a refund of advance tax deposit?
Ans. Yes, if there is any unutilized amount from the advance tax deposit after filing FORM GSTR-3B, a Casual Taxable Person can apply for a refund by filing FORM GST RFD-01, selecting ‘Refund of Excess Balance in Electronic Cash Ledger’ as the reason.
Q18. What are the advantages of GST registration?
Ans. GST registration provides legal recognition as a supplier, allows for proper accounting of taxes, authorizes tax collection from purchasers, enables passing on tax credits, and makes businesses eligible for various benefits under GST law.
Q19. What is the effective date of registration?
Ans. If the registration application is submitted within thirty days from the date of becoming liable for registration, the effective date is the date of liability. If the application is submitted after thirty days, the effective date is the date of grant of registration. For voluntary registration, the effective date is the date of the registration order.
Update Status as on 27 November 2025
The core provisions and procedures mentioned in the above FAQs remain valid and unchanged as of November 27, 2025. However, the following minor updates/clarifications have been introduced since January 2025 for better compliance and ease of doing business:
1. Auto-approval of CTP registration: With effect from 01-Nov-2025, Casual Taxable Person registration applications accompanied by valid advance tax payment are now being auto-approved within 3 working days (instead of manual processing in most cases) provided Aadhaar authentication/e-KYC is completed. (Refer Advisory dated 01/11/2025 on GST Portal)
2. Estimation of advance tax liability: While calculating the advance deposit, eligible Input Tax Credit expected during the CTP period may now be explicitly deducted while arriving at the net estimated tax liability. This clarification has been re-emphasised in GST Circular No. 231/25/2025 dated 15/11/2025.
3. QRMP Scheme for CTPs: Casual Taxable Persons whose aggregate turnover (PAN-India) does not exceed ₹1.5 crore in the current or preceding financial year are now eligible to opt for the Quarterly Return Monthly Payment (QRMP) Scheme. (Central Tax Notification No. 42/2025 dated 05/08/2025)
4. Maximum validity period: The initial registration period + one-time extension continues to be capped at a cumulative maximum of 180 days (90 + 90). No further extension is permitted even on payment of additional advance tax.
5. Refund processing: Refunds of excess advance deposit (RFD 01 – Excess Balance in Cash Ledger) filed by CTPs after surrender are now being processed within 15 days from the date of filing, subject to submission of GSTR-10 (Final Return).
All other information provided in the original FAQs dated January 12, 2025 remains fully applicable.
For the latest updates, kindly refer to the official GST Portal (www.gst.gov.in) or consult your jurisdictional GST officer or advisor.