ITC for Casual and Non-Resident Taxable Persons

ITC for Casual 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.

Both register for a limited period. Both pay advance tax. Both are compulsorily registrable under s.24. They are frequently discussed together, and on input tax credit they are opposites.

A casual taxable person is entitled to input tax credit like any other registered person, subject to s.16 and s.17. A non-resident taxable person is not — s.24(1) of the CGST Act provides that a NRTP shall not be entitled to avail input tax credit in respect of goods or services or both, other than on goods imported by him. One sub-section, and the entire credit position diverges.

The two definitions

Casual taxable person, s.2(20) — a person who occasionally undertakes transactions involving supply of goods or services 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 key feature: a fixed place of business elsewhere in India, but not in this State.

Non-resident taxable person, s.2(77) — a person who occasionally undertakes transactions involving supply of goods or services, whether as principal, agent or in any other capacity, but who has no fixed place of business or residence in India.

The key feature: no presence in India at all.

The credit position

Casual taxable person. Nothing in the Act restricts credit. A CTP registering for an exhibition in another State takes credit on stall rental, local logistics, hotel accommodation where eligible, and the goods it brings in — subject to the ordinary conditions and the s.17(5) blocks.

Non-resident taxable person. Section 24(1) — the provision immediately following the definition of registration requirements for NRTPs — is unambiguous: no credit other than on goods imported by him.

So a foreign entity registering as a NRTP to sell at an Indian trade fair:

• can take credit of IGST paid on import of the goods it brings in;
• cannot take credit on the exhibition stall, local transport, local services, or anything else procured in India.

The rationale is administrative — a person with no Indian presence and a short registration life has no realistic mechanism for post-departure verification, so the credit is confined to a transaction the customs system already records.

The advance deposit

Both are subject to s.27(2): a casual taxable person or a non-resident taxable person shall, at the time of submission of the application for registration, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.

Where the registration is extended under the proviso to s.27(1), an additional deposit equivalent to the estimated liability for the extension period is required.

Section 27(1): the certificate of registration is valid for the period specified in the application or ninety days from the effective date of registration, whichever is earlier, extendable by a further period not exceeding ninety days.

The advance deposit is credited to the electronic cash ledger under s.27(3) and used to discharge liability.

Refund of the unused deposit

Section 54(13): notwithstanding anything to the contrary, the amount of advance tax deposited by a casual taxable person or a non-resident taxable person under s.27(2) shall not be refunded unless such person has, in respect of the entire period for which the certificate of registration granted to him had remained in force, furnished all the returns required under s.39.

So the refund is conditional on complete return compliance for the whole registration period, not merely for the periods in which business was done. A CTP that registers for ninety days, trades for two weeks, and files returns only for those weeks will not get the balance back.

The claim is made in FORM GST RFD-01 under the "refund of excess balance in electronic cash ledger" category, and the two-year limit under s.54(1) applies.

Returns

Casual taxable person — files the ordinary returns: GSTR-1 and GSTR-3B for the period of registration.

Non-resident taxable person — files GSTR-5, within thirteen days after the end of the calendar month or within seven days after the last day of the validity period of registration, whichever is earlier.

Neither is required to file GSTR-9: s.44 excludes a casual taxable person and a non-resident taxable person from the annual return requirement.

Key takeaways

• A casual taxable person takes credit normally, subject to s.16 and s.17.
• A non-resident taxable person takes credit only on goods imported by him — s.24(1).
• Both must make an advance deposit of estimated tax at the time of applying, under s.27(2).
• Registration is valid for the period applied for or ninety days, extendable by ninety.
• Section 54(13): the advance deposit is refunded only if all returns for the entire registration period have been furnished.
• Neither files GSTR-9.

Read next

• Casual Taxable Person: Registration and Compliance
• Non-Resident Taxable Person: Special Provisions
• GSTR-5: Return for Non-Resident Taxable Persons
• Refund of Excess Balance in the Electronic Cash Ledger

Disclaimer: Positions stated as on 5 September 2026, based on the CGST Act as amended to 31 March 2026 (ICAI Bare Law, 12th edition).