Section 27 of CGST Act - Special Provisions Relating to Casual Taxable Person and Non-Resident Taxable Person
Section 27 of the Central Goods and Services Tax Act, 2017 lays down special registration conditions for a casual taxable person and a non-resident taxable person. It governs the validity of their GST registration, advance deposit of estimated tax, extension of the registration period and credit of the deposit to the electronic cash ledger.
Updated: 15 September 2026
Meaning of Casual Taxable Person and Non-Resident Taxable Person
Casual taxable person - Section 2(20)
A casual taxable person is 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 that person has no fixed place of business.
Non-resident taxable person - Section 2(77)
A non-resident taxable person is a person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal, agent or in any other capacity, but has no fixed place of business or residence in India.
Text of Section 27 of the CGST Act
27. Special provisions relating to casual taxable person and non-resident taxable person.
(1) The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier, and such person shall make taxable supplies only after the issuance of the certificate of registration.
Proviso: The proper officer may, on sufficient cause being shown by the taxable person, extend the period of ninety days by a further period not exceeding ninety days.
(2) A casual taxable person or a non-resident taxable person shall, at the time of submission of the application for registration under Section 25(1), make an advance deposit of tax equal to the estimated tax liability for the period for which registration is sought.
Proviso: Where an extension is sought under sub-section (1), an additional amount equal to the estimated tax liability for the extension period must be deposited.
(3) The amount deposited under sub-section (2) is credited to the electronic cash ledger and is utilised in the manner provided under Section 49.
How Section 27 Works
| Requirement | Legal effect |
|---|---|
| Registration before taxable supplies | A casual taxable person or non-resident taxable person covered by Section 27 can make taxable supplies only after the registration certificate is issued. |
| Initial validity | The shorter of the period requested in the application or 90 days from the effective date of registration. |
| Extension | The proper officer may grant a further period not exceeding 90 days where sufficient cause is shown. |
| Advance tax | Estimated tax liability for the period of registration must be deposited when applying under Section 25(1). |
| Additional deposit for extension | Estimated tax liability for the extension period must also be deposited. |
| Use of deposit | The amount is credited to the electronic cash ledger and used in accordance with Section 49. |
Registration Procedure and Relevant CGST Rules
Section 25(1) requires a casual taxable person or non-resident taxable person to apply for registration at least five days before commencement of business. A casual taxable person generally applies through FORM GST REG-01. A non-resident taxable person applies through FORM GST REG-09 and the application is signed or verified through the prescribed process by an authorised signatory resident in India having a valid PAN.
The CGST Rules provide for advance deposit through the common portal before acknowledgement of the relevant registration application. For an extension of the registration period, the prescribed extension application must be filed before expiry of the existing validity and the additional advance tax required by Section 27(2) must be paid.
Practical point: Forms and portal workflows can be amended. Before filing, verify the current form and procedure on the official GST Portal and the latest CGST Rules.
Refund of Unused Advance Tax
Any balance remaining after adjustment of the tax payable out of the advance tax deposited under Section 27 may be claimed in accordance with the refund provisions. Section 54 also restricts refund of the advance tax deposit until the required returns for the entire period for which the registration certificate remained in force have been furnished.
Related CGST Act Provisions
Section 27 should be read with Section 24 - Compulsory registration in certain cases, Section 25 - Procedure for registration, Section 49 - Payment of tax, interest, penalty and other amounts, and the statutory refund provisions under Section 54.
Key Compliance Points
A business operating temporarily in a State or Union territory where it has no fixed place of business should examine whether it falls within the definition of a casual taxable person. A person outside India making occasional taxable supplies in India should separately examine the non-resident taxable person provisions. In either case, the applicant should estimate the tax liability carefully because Section 27 requires advance funding of that estimated liability.
Disclaimer: This article is for general legal and tax information. GST law, rules, notifications, forms and portal procedures may change. Verify the current law and official portal instructions for a specific transaction.