The Goods and Services Tax (GST) system in India categorizes businesses and individuals based on the nature of their operations. One such category is the Casual Taxable Person (CTP). This classification applies to businesses or individuals who undertake occasional transactions without having a fixed place of business in the state where they are supplying goods or services. Such persons are required to register under GST as a Casual Taxable Person before they begin operations.

In this blog, we will discuss who needs to register as a Casual Taxable Person and provide some examples for better understanding.

Understanding the Casual Taxable Person (CTP) Under GST

According to Section 2(20) of the CGST Act, 2017, a Casual Taxable Person is someone who occasionally undertakes supply of goods or services in a taxable territory where they do not have a fixed place of business. This registration is temporary and is valid for a maximum of 90 days, with an option for extension.

Who Should Register as a Casual Taxable Person?

A person or business must register as a Casual Taxable Person under GST if:

  • They do not have a fixed place of business in the state where they are making taxable supplies.

  • They engage in temporary business activities such as exhibitions, trade fairs, or contract-based work.

  • Their turnover, regardless of threshold limits, necessitates GST registration due to the temporary nature of their business.

Examples of Businesses That Need CTP Registration

1. Foreign Companies or Individuals

Foreign businesses or individuals who are temporarily conducting business in India must register as a Casual Taxable Person. Some common examples include:

  • A foreign company organizing a workshop or seminar in India.

  • An international service provider offering short-term consulting services in the country.

  • Foreign vendors setting up a temporary stall at an exhibition.

2. Event Organizers

Businesses or individuals organizing trade exhibitions, fairs, or conferences in a state where they do not have a fixed business presence need to register as a Casual Taxable Person. Examples include:

  • A company hosting a real estate expo in a different state.

  • An entrepreneur organizing a fashion or jewelry exhibition in multiple states.

  • A business setting up a temporary stall at a wedding or festive market.

3. Importers for Temporary Supplies

Businesses that import goods for a limited period and then re-export or sell them temporarily also need to register under GST. For example:

  • A business importing machinery for a trade show and selling it after the event.

  • A retailer bringing foreign goods to India for an exhibition and selling them.

4. Consultants and Contractors

Independent professionals and service providers offering temporary services in a different state or country fall under this category. Some cases include:

  • A software consultant from Maharashtra working on a three-month project in Rajasthan.

  • A contractor hired to build a temporary structure for an event.

  • An architect visiting another state to design and oversee construction.

GST Rules for Casual Taxable Persons in Rajasthan

In Rajasthan, businesses or individuals registering as Casual Taxable Persons must follow the state-specific GST regulations along with the general GST framework. Some key points include:

  • Advance Tax Requirement: CTPs in Rajasthan must deposit the estimated tax liability before starting their business activities.

  • Registration Timeline: Registration must be applied at least five days before the commencement of business in Rajasthan.

  • Local Exhibitions and Fairs: Rajasthan is known for its seasonal trade fairs and exhibitions. Businesses participating in these events must register as CTPs if they do not have a fixed place of business in the state.

  • Temporary Shops & Seasonal Traders: Traders coming to Rajasthan for short-term sales of items such as handicrafts, woolen goods, and festival-related products must obtain a CTP registration if their turnover meets the GST threshold.

How to Register as a Casual Taxable Person?

To register as a CTP under GST, follow these steps:

  1. Apply Online on the GST Portal – Visit the official GST website and fill out Form GST REG-01.

  2. Pay Advance Tax – Estimate the tax liability for the registration period and pay it in advance.

  3. Receive Temporary GSTIN – Upon approval, a temporary GSTIN (Goods and Services Tax Identification Number) is issued.

  4. File GST Returns – File GSTR-1 and GSTR-3B for the registered period.

  5. Apply for Extension (if needed) – If the business continues beyond 90 days, an extension can be requested.

Key Points to Remember

  • Registration is Mandatory – Even if the turnover is below the ₹20 lakh threshold, a CTP must register before commencing business.

  • Advance Tax Payment is Required – A CTP must pre-pay the estimated GST liability.

  • No Composition Scheme Available – CTPs cannot opt for the GST Composition Scheme.

  • GST Returns Must be Filed – Even for a short duration, proper compliance is necessary.

Conclusion

Registering as a Casual Taxable Person under GST is essential for businesses or individuals engaging in temporary commercial activities in a state where they do not have a permanent place of business. In Rajasthan, seasonal traders, exhibitors, and consultants must ensure they comply with state-specific GST requirements to avoid penalties. If you or your business fall under this category, it is advisable to register in advance and adhere to GST guidelines.

Need help with GST registration as a Casual Taxable Person in Rajasthan? Consult a GST expert today for hassle-free compliance!

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