Temporary Business in Another State? You Might Be a Casual Taxable Person – Here’s Why It Matters

Introduction

Under the Goods and Services Tax (GST) regime, most businesses need to register if their turnover exceeds a threshold. However, some individuals or businesses may carry out taxable activities in a different state temporarily, like during an exhibition or a trade fair. These businesses are referred to as Casual Taxable Persons (CTPs) and have special provisions under the GST law.

Who Qualifies as a Casual Taxable Person?

A Casual Taxable Person (CTP) under GST refers to someone who occasionally undertakes taxable transactions in a State or Union Territory where they do not have a fixed place of business. This is particularly relevant for businesses participating in exhibitions, trade fairs, or temporary stalls.

Definition as per GST Act – Section 2(20):

A Casual Taxable Person means a person who occasionally undertakes taxable supply of goods or services or both in a State or UT where they do not have a fixed place of business.

Examples:

• An artist from Delhi selling paintings at an art fair in Mumbai.
• A garment seller from Tamil Nadu setting up a stall in a Bengaluru exhibition.
• A food stall vendor participating in a national trade expo in Kolkata.

Documents Required for Registration:

1. PAN of the applicant
2. Identity and address proof of the person (like Aadhaar, Passport)
3. Photograph
4. Proof of business (like invoice copy)
5. Address proof of temporary business place (exhibition stall allotment letter, etc.)
6. Board resolution/authorization letter
7. Advance tax payment challan

Validity and Extension

• Valid for 90 days from the effective date.
• Can be extended once for another 90 days using Form GST REG-11.
• After expiry, a fresh registration is needed for future events.

Common Mistakes to Avoid

• Delaying registration until after supplies are made.
• Incorrectly estimating sales, leading to tax shortfall.
• Missing return filing deadlines.
• Assuming threshold limit exemption applies.

Consequences of Non-Compliance

• Section 122 Penalty: ₹10,000 or the amount of tax due, whichever is higher.
• Goods may be seized or confiscated.
• May face disqualification from future event participation.

FAQ’s

Q1. Can CTP claim Input Tax Credit (ITC)?
A: No, unless you are also a regular taxpayer elsewhere.

Q2. Can a CTP sell online?
A: No. Online sales require a regular GST registration.

Q3. Can I use one registration for multiple exhibitions?
A: No. A separate CTP registration is needed for each event/location.

Q4. What if actual turnover exceeds estimate?
A: Pay additional tax using PMT-06 and report in return.

Need Help with CTP Registration? Talk to Chhota CFO!

Navigating the GST portal, estimating advance tax, and filing returns correctly as a Casual Taxable Person can be confusing — especially if you’re busy preparing for your exhibition or trade event.

That’s where Chhota CFO comes in.

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✅ Advance Tax Estimation & Filing Support
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✅ PAN-India Support for Events & Exhibitions

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