Casual Taxable Person under GST

Trade fairs, exhibitions, pop-up events, and seasonal sales bring sellers into States where they have no fixed place of business. To bring such occasional supplies into the GST net, the law has carved out a special category — the Casual Taxable Person (CTP). In 2026, with India hosting hundreds of large trade exhibitions annually (G20 legacy, semicon, fintech), every event organiser and visiting seller should understand the CTP framework before setting up a stall.

Who is a Casual Taxable Person?

Section 2(20) of the CGST Act defines a Casual Taxable Person as '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 Union Territory where he has no fixed place of business.' The defining elements are: occasional supply, in the course of business, and absence of a fixed place of business in the State where the supply is made.

Mandatory registration — Section 24(ii)

Unlike regular suppliers, a CTP cannot wait for the ₹40 lakh/₹20 lakh threshold. Section 24(ii) mandates registration as a CTP regardless of turnover, before commencing business in that State. The registration must be applied for at least five working days prior to commencement of business. A valid registration is essential to legally invoice from the event location.

Advance deposit of tax — Section 27

1. At the time of applying for CTP registration, the applicant must make an advance deposit of estimated tax liability.
2. The deposit is credited to the Electronic Cash Ledger of the CTP.
3. Output tax during the validity period is debited from this ledger, alongside any further deposits made.
4. Excess balance at the end of the validity period is refundable under Section 54.
5. Without this advance deposit, the registration application is not processed.

Validity of CTP registration

CTP registration is valid for the period specified in the application, subject to a maximum of 90 days from the effective date of registration. The Commissioner may extend this by a further 90 days on application — with additional advance tax deposit for the extension period. After expiry, the CTP must either obtain a fresh registration if business continues, or wind up operations in that State.

Returns and compliances

• GSTR-1 — outward supplies return, monthly (or as opted).
• GSTR-3B — summary return with tax payment, monthly.
• GSTR-5 (in some pre-2017 contexts) was used; today, regular GSTR-1 and 3B apply with the CTP flag.
• Final return at end of validity — to reconcile and claim refund of unutilised advance tax balance.
• No GSTR-9 annual return is required for a CTP whose registration was active for less than a full FY in the State.

Examples of Casual Taxable Persons

1. A Delhi-based jewellery exporter setting up a stall at an exhibition in Mumbai for ten days.
2. A Bengaluru-based handicrafts seller participating in the Surajkund Mela.
3. A foreign exhibitor (becomes a Non-Resident Taxable Person in many cases, similar regime).
4. A consulting firm conducting a paid workshop in a State where it has no office.

Common pitfalls

• Late registration — applying less than 5 working days before commencement leads to denial.
• Underestimating advance tax — leads to mid-event top-up applications and delays.
• Not opting for the right place of supply rules — e.g., assuming intra-State when it may be inter-State.
• Forgetting the final return — unutilised cash balance refund is lost if not claimed within the time limit.

CTP vs Non-Resident Taxable Person — quick comparison

CTP is for an Indian-based person supplying occasionally in another State; a Non-Resident Taxable Person (NRTP) is for a person located outside India occasionally supplying in India. The two regimes share many features — mandatory registration, advance tax deposit, 90-day validity extendable by 90 — but differ in details. NRTP registration is via Form GST REG-09, requires an authorised representative in India with valid PAN, and is typically used by foreign exhibitors at Indian trade shows. CTP registration is via REG-01 (with CTP option ticked) and uses the applicant's own PAN. Returns differ — NRTP files GSTR-5 (a combined return), while CTP files regular GSTR-1 and GSTR-3B. Both regimes allow refund of unutilised cash ledger balance after expiry. If you advise foreign companies participating in India events, identify whether they are NRTP or CTP based on their location and structure them accordingly — the registration journey and post-event reconciliation differ materially.

Conclusion

The CTP regime ensures that occasional sellers contribute GST without burdening them with a permanent registration. In 2026, plan exhibition participation at least 10 working days in advance: estimate sales, compute advance tax, apply on time, and remember to file the final return for refund. Treat CTP as a project-with-deadlines compliance exercise rather than an afterthought.