Casual Taxable Person GST explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A casual taxable person, such as an exhibitor at a trade fair in another State, or a non-resident taxable person supplying in India for a short period, must deposit estimated GST before the registration is even granted. If actual sales fall short of the estimate, part of that deposit is left over. It can be refunded, but only once every return for the registration period has been filed.
Under s.27(2), a casual or non-resident taxable person makes an advance deposit equal to the estimated tax liability for the registration period, and s.27(3) credits it to the electronic cash ledger. After tax for the period is paid from it, the unused balance is refundable. Section 54(13) bars the refund until all returns for the whole period of registration are filed, and the third proviso to Rule 89(1) says the claim is made only after the last return has been furnished. The claim is filed in RFD-01.
How the advance deposit works
Section 27(1) limits the registration of a casual or non-resident taxable person to the period stated in the application or 90 days from the effective date, whichever is earlier. The officer may extend this by up to 90 more days for sufficient cause.
At the time of applying, the portal gives a temporary reference number so that the deposit can be made, and the registration acknowledgement issues only after the deposit (Rule 8(6) for casual persons; Rule 13 for non-residents). The deposit equals the estimated tax for the period sought. If the period is extended, an additional deposit for the extension period is required (proviso to s.27(2)).
Because the deposit sits in the electronic cash ledger, each month's tax is paid out of it through the regular returns. Whatever is left at the end is your money, and it is claimed as a refund of cash-ledger balance. Our excess cash ledger refund service handles these claims for exhibitors and overseas suppliers.
Returns you must file first
| Person | Returns during registration | Condition for refund |
|---|---|---|
| Casual taxable person | Regular returns (GSTR-1 and GSTR-3B) for each period of registration | All returns for the full registration period filed |
| Non-resident taxable person | GSTR-5 for every calendar month or part, within the time in s.39(5) (ending no later than 7 days after the registration period ends) | All returns for the full registration period filed |
Section 54(13) is strict: it applies "notwithstanding anything to the contrary" in s.54. A single missing return, even a nil return for a month with no sales, blocks the refund.
Worked illustration
A furniture maker from Jaipur registers as a casual taxable person in Maharashtra for a 30-day exhibition. Estimated sales ₹20,00,000 at 18% (illustration), so the advance deposit is ₹3,60,000 (split between CGST and SGST).
| Item | Amount |
|---|---|
| Advance deposit (s.27(2)) | ₹3,60,000 |
| Actual taxable sales | ₹12,00,000 |
| Tax on actual sales at 18% | ₹2,16,000 |
| Paid from cash ledger through the return | ₹2,16,000 |
| Balance left in cash ledger | ₹1,44,000 |
| Refundable after last return is filed | ₹1,44,000 |
If the maker had ITC from purchases in Maharashtra, some output tax could be paid from the credit ledger instead, leaving a larger cash balance to claim.
Step by step: claiming the refund
- File every return for the registration period, including nil returns and the last one due after the period ends.
- Pay all tax, interest and late fee out of the ledgers. Check the electronic liability register for anything outstanding.
- Check the cash-ledger balance head-wise (CGST, SGST or IGST). PMT-09 can move balances between heads if needed.
- File RFD-01 for the balance in the electronic cash ledger, entering the amount under each head.
- Track the claim. For cash-ledger refunds, RFD-02 acknowledgement is made available directly (Rule 90(1)); the sanction follows in RFD-06 and payment in RFD-05 to a PFMS-validated bank account.
Time limit and paperwork
The refund is of a balance in the electronic cash ledger. Circular 166/22/2021-GST clarifies that the two-year time limit in s.54(1) does not apply to refund of excess cash-ledger balance, and that no unjust-enrichment declaration or CA certificate under Rule 89(2)(l)/(m) is needed. Even so, claim promptly. A registration that has lapsed is harder to operate, and bank details must remain valid for PFMS. See cash ledger refund time limit: Circular 166.
Common problems
- Missing nil returns. A month with no sales still needs a return. This is the most frequent reason the refund stays blocked.
- Late fee not paid. Late fees for delayed returns must be cleared before the balance is truly "excess".
- Wrong head. Deposit made under IGST when the sales were intra-State (or the reverse). Transfer with PMT-09 before claiming, or see section 77: tax paid under the wrong head if tax was actually paid under the wrong head.
- Extension deposit forgotten. Extending the registration without the additional deposit creates problems during the period itself.
- Bank account. For non-residents, the refund goes to a bank account validated through PFMS, so ensure the account on the registration is valid for credit.
For the registration side of casual dealers, see casual taxable person: GST registration and compliance.
Need help recovering an exhibition or short-term deposit?
If your deposit is still sitting in the cash ledger after an exhibition or a short project, we can check that every return is in place, clear any late fee, and file the RFD-01 for the balance. See our cash ledger refund support, or the full GST refund service.
Key takeaways
- Casual and non-resident taxable persons deposit estimated tax in advance under s.27(2), credited to the cash ledger.
- The unused balance is refundable only after all returns for the whole registration period are filed (s.54(13); Rule 89(1) third proviso).
- The claim is made in RFD-01 as a refund of cash-ledger balance.
- Circular 166/22/2021-GST: no two-year limit and no unjust-enrichment papers for cash-ledger refunds.
- Nil returns and late fees are the usual blockers.
Read next
- Refund of excess balance in the electronic cash ledger
- GST refund on cancellation of registration
- Refund of GST TDS credit in the cash ledger
- PFMS bank account validation failed for GST refund
Disclaimer: Positions stated as on 30 September 2026, based on the CGST Act and Rules as amended, the Finance Act 2026, and the ICAI Handbook on Refunds under GST (January 2026). Verify current notifications before filing.