Casual Taxpayer (CTP) GST for Sonepur Mela & Bihar Exhibitions
Are you setting up a stall at Sonepur Harihar Kshetra Mela, Patna Saras Mela, or the Bihar Dairy Expo?
If you are a trader from outside Bihar (or even a local trader without a GST number in this specific location), you cannot sell goods at these fairs without a Casual Taxable Person (CTP) registration. The rules here are different: you must pay tax in advance and register before you enter the fairgrounds for Casual Taxpayer.
What is a Casual Taxable Person? (Section 2(20))
📌 Quick Definition :
A Casual Taxable Person (CTP) is anyone who supplies goods or services occasionally in a territory (like Bihar) where they have no fixed place of business. In the context of Bihar, this applies to all exhibitors coming from UP, West Bengal, Delhi, etc., to sell at trade fairs and melas for Casual Taxpayer
The Critical Difference
For regular shopkeepers, GST is post-paid (sell first, pay later). For Sonepur Mela exhibitors, GST is pre-paid (Advance Tax). This often shocks first-time exhibitors who find their working capital locked before the first sale.
Standard Taxpayer
Payment: Post-paid (Pay by 20th of next month)
Cash Flow: You use the customer’s money to pay tax.
Validity: Perpetual (Until cancelled).
Casual Taxable Person
Payment: Pre-paid (Deposit 100% estimated tax BEFORE registration)
Cash Flow: You must lock your own capital upfront.
Validity: Temporary (Maximum 90 Days).
When is CTP Registration Mandatory? (The "No Threshold" Rule)
❌ Common Misconception:
Many business owners mistakenly believe that if their turnover is below ₹20 Lakhs (or ₹40 Lakhs for goods), they are exempt. This is legally INCORRECT for CTPs.
Section 24(ii) of the CGST Act overrides the standard exemption limits.
Standard Business
Registration required only if turnover > ₹40 Lakhs (Goods) or ₹20 Lakhs (Services).
Casual Taxable Person
Registration required even if:
Turnover = ₹1
NO THRESHOLD EXEMPTION!
Real Scenario: A Sonepur Case Study
📍 The Situation: Ramesh Carpets, a registered business in Bhadohi (UP), rents Stall No. B-45 at Sonepur Mela for 30 days. He expects to sell carpets worth ₹5 Lakhs.
Problem: He cannot use his UP GST number to sell carpets in Bihar.
Solution: He must take a temporary CTP registration in Bihar for the duration of the Mela (Nov 15 – Dec 15).
The "5-Days Prior" Deadline (Section 25)
Section 25(1) mandates that you apply for registration at least 5 days prior to the commencement of business.
⏰ The Risk: If Sonepur Mela starts on November 15th, you MUST apply by November 10th. If you apply late, the GST officer may not grant the certificate in time, and the Mobile Squad can seize your goods entering the fairgrounds for “movement without valid registration.”
The "5-Days Prior" Deadline (Section 25)
Section 25(1) of the CGST Act mandates that a Casual Taxable Person must apply for registration at least 5 days prior to the commencement of business.
The "Advance Tax" Trap: Estimating Liability
You cannot simply register and start selling. Under Section 27(2), the government grants CTP registration only after you deposit the estimated tax liability into the electronic cash ledger.
How to Estimate Your Liability
Since you haven’t sold anything yet, you must forecast your sales for the fair duration.
The Formula
Advance Tax = (Estimated Fair Sales × GST Rate) – (Input Tax Credit on Stock)
Note: For a hassle-free approval during the rush of Casual Taxpayer Sonepur Mela, most traders deposit the gross tax liability to avoid query notices.
What happens if actual sales exceed estimates?
📈 The “Top-Up” Scenario: If your stall becomes famous and you sell ₹8 Lakhs instead of the estimated ₹5 Lakhs:
You must generate a Challan immediately for the tax on the extra ₹3 Lakhs.
Deposit this amount into your Cash Ledger to maintain compliance.
Failure to do so creates a discrepancy that attracts penalties.
What happens if sales are lower than estimates?
📉 The “Refund” Scenario: If rain spoils the fair and you only sell ₹2 Lakhs: The excess tax you paid remains safe in your Electronic Cash Ledger. You will claim this back as a Refund after filing your final return (see the refund section below).
Complete CTP Registration Workflow
Compliance for Casual Taxpayer CTP is sequential. You cannot skip steps.
From Application to Certificate
Get Allotment Letter (From Mela Authority)
Estimate Sales (Be realistic)
Generate TRN (On GST Portal)
Pay Advance Tax (Via Net Banking/NEFT)
Submit REG-01
Get Certificate (REG-06)
Start Selling
Step-by-Step Registration Process
Step 1: Temporary Reference Number (TRN)
Go to GST Portal > New Registration.
Select “Casual Taxable Person”.
State: Bihar (Even if you are from UP).
Generate TRN using OTP.
Step 2: Filling Form REG-01
Duration: Enter the fair dates (e.g., 15 Nov to 15 Dec).
Turnover: Enter your estimated sales figures here to calculate the Challan amount.
Step 3: Proof of Place of Business (Crucial for Fairs)
Since you don’t own the fairground, you cannot provide an electricity bill.
Required: The Stall Allotment Letter or Possession Letter issued by the Exhibition Organizer (e.g., BSTDC, Dept of Agriculture, Event Manager).
Tip: The letter must mention your Trade Name and Stall Number clearly.
Step 4: Payment of Challan (The Trigger)
The application will NOT be submitted until the system detects the payment.
The portal generates a Challan based on your estimates.
Pay it immediately.
Once paid, the Application Reference Number (ARN) is generated.
✅ Certificate Received: You will receive Form GST REG-06. This is your “Gate Pass.” Print it and display it at your stall to avoid harassment by inspectors.
Extension of Validity (Form REG-11)
Per Section 27(1), the initial CTP registration is valid for the period specified in the application or 90 days, whichever is shorter.
Need More Time?
Sonepur Mela often gets extended by a week due to high footfall.
- File Form GST REG-11 before your current registration expires
- This gives you an extension of up to 90 additional days
- Condition: You must deposit additional Advance Tax for the extended period before the extension is granted
⚠️ Warning: If your registration expires on Dec 15th, do not wait until Dec 16th. Apply for extension by Dec 10th.
Returns Compliance: Frequency & Forms
Being a CTP does not exempt you from filing returns. In fact, strict filing is the only way to get your refund.
| Form | Frequency | Purpose |
|---|---|---|
| GSTR-1 | Monthly | Report details of your sales (B2C or B2B) at the fair. |
| GSTR-3B | Monthly | Offset your liability against the Advance Tax you already paid. |
⚠️ Important: If the fair runs from Nov 15 to Dec 05, you must file returns for both November and December.
📋 Confused About Return Filing?
Let our experts handle your CTP compliance end-to-end
How to Claim Refund (The Exit Strategy)
Most CTPs overpay advance tax to be safe. Here’s how to get that money back into your bank account.
The Refund Process
File All Returns: File GSTR-1 and GSTR-3B for the full period.
Check Balance: Your excess deposit will appear in the “Electronic Cash Ledger” as a balance.
Apply for Refund:
Navigate to Services > Refunds > Refund of excess balance in electronic cash ledger.
The system auto-populates the amount.
Click Submit.
Timeline: Refunds are typically processed within 60 days directly to your bank account.
💡 Pro-Tip: Never click “Surrender Registration” until the refund hits your bank account. Surrendering early can complicate the refund verification.