Page 20 - Chapter 9 Registration

CCP 09.09.24.00
Mr. X of Mumbai often participates in the jewellery exhibition at Trade Fair in Delhi, which is

organised every year in the month of February. Mr. X applied for registration in January. The
proper officer demanded an advance deposit of tax in an amount equivalent to the estimated tax
liability of Mr. X. You are required to examine whether any advance tax is to be paid by Mr. X at the
time of obtaining registration? [CA final MTP May 2018]

Answer:-
Ü Yes, advance tax is to be paid by Mr. X at the time of obtaining registration.
Ü Mr. X occasionally undertakes supply of goods in the course or furtherance of business in a State where
he has no fixed place of business.

Ü Thus, he qualifies as casual taxable person as per section 2(20) of CGST Act, 2017.
Ü As per section 27(2) read with proviso thereto, at the time of submission of application for
registration, a casual taxable person shall make an advance deposit of tax for net estimated tax
liability for the period for which registration is sought.
Ü On the contrary, normal taxable person does not have to make any advance deposit of tax to obtain

registration.
Ü If extension of time is sought u/s 27(1), CTP shall deposit an additional tax which is equal to his
estimated tax liability for the period for which the extension is sought.

CCP.09.09.25.00
Mr. Allan, a non-resident person, wishes to provide taxable supply of goods. He has no fixed place of
business or residence in India. He seeks your advice on the following aspects, relating to CGST Act,
2017:-

(I) When shall he apply for registration?
(ii) Is PAN mandatory for his registration?
(iii) What is the period of validity of Registration Certificate (RC) granted to him?

(iv) Will he be able to extend validity of his registration? If yes, what will be the period of extension?
Answer:-
As per section 27 of CGST Act, 2017,

(I) Mr. Allan, being a non-resident taxable person, should apply for registration
at least 5 days prior to the commencement of business irrespective of the threshold limit.

(ii) No, PAN is not mandatory for his registration.
Ü He has to submit a self-attested copy of his valid passport along with the application signed by his
authorized signatory who is an Indian Resident having valid PAN.
Ü A business entity incorporated or established outside India shall submit the application for
registration along with its tax identification number/ unique number based on which it is
identified by Government of that country or its PAN, if available.
(iii) Registration Certificate granted to Mr. Allan will be valid for earlier of:-

Ø period specified in the application for registration or
Ø 90 days from the effective date of registration.

(iv) Yes, Mr. Allan can get the validity of his registration extended.
Ø Registration can be extended further by a period not exceeding 90 days by making application

before the end of period of validity of registration granted to him.

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