The Goods and Services Tax in India is obligatory for most parties or firms supplying goods or services. To help with compliance, the GST regime categorizes taxpayers on the basis of their activities, turnover and registration.
This blog explains the different types of taxpayers under GST, their responsibilities, and how each type affects the way taxes are filed and paid.
Introduction
GST has brought together various indirect taxes in India, creating one indirect tax system. Not every taxpayer in this system is the same. The GST law recognises that businesses operate differently, some deal in goods, others in services; some are small, others large; and some may be casual or seasonal. To manage this diversity, the law has laid out specific taxpayer categories, each with different compliance rules and benefits.
Knowing the different taxpayers in GST is important for registration, GST return filing and avoiding penalties. There are regular taxpayers, casual taxpayers and e-commerce operators. Knowing the category is important because that means you are trading legitimately and correctly.
Types of Taxpayers Under GST
Broadly, the GST system recognizes the following types of taxpayers
1. Regular Taxpayer
This is the most common category. Any individual, business, or organisation engaged in the supply of goods or services with a turnover above the threshold limit must register as a regular taxpayer.
Key Features –
- Must file it monthly or quarterly GST returns (GSTR-1, GSTR-3B, etc.)
- Eligible to claim Input Tax Credit (ITC)
- Can make interstate supplies
- No restriction on paying turnover on registration if supplying interstate or via e-commerce
This is the default category unless a specific scheme (like composition) is chosen.
2. Composition Taxpayer
Small businesses with turnover up to a certain limit can opt for the Composition Scheme. This is a simplified tax scheme aimed at reducing the compliance burden.
Key Features –
- Turnover limit is Rs 1.5 crore for goods suppliers and Rs 50 lakh for service providers (with conditions).
- Cannot claim the ITC
- Cannot issue the tax invoices
- Must pay the tax at a fixed rate (1% for traders, 5% for restaurants, 6% for service providers)
- Must file CMP-08 (quarterly) and GSTR-4 (annually)
This scheme is ideal for small traders, shopkeepers, or service providers with low turnover.
3. Casual Taxable Person (CTP)
A Casual Taxable Person is someone who supplies goods or services occasionally in a state or union territory without having a fixed place of business.
Like A trader setting up a stall at an exhibition or fair or A consultant offering services at a temporary office in another state.
Key Features –
- Registration valid for a maximum of 90 days (extendable once)
- Must pay advance tax based on estimated turnover
- Not eligible for Composition Scheme
- Has to file regular returns like any normal taxpayer
4. Non-Resident Taxable Person (NRTP)
An NRTP is someone who does not reside in India but supplies goods or services in India on an occasional basis.
Key Features
- Must apply for GST registration at least 5 days before starting business
- Also required to pay advance tax
- Validity and compliance are similar to CTP
- Cannot opt for the Composition Scheme
- Returns include GSTR-1 and GSTR-5
This applies to foreign businesses participating in trade fairs or short-term projects in India.
5. Input Service Distributor (ISD)
An Input Service Distributor is an office of a business that receives input services (like advertising or HR services) and distributes the credit of GST paid to other branches or units.
Key Features –
- Only deals in the distribution of input tax credit, not in the sale of goods/services
- Needs a separate ISD registration
- File the monthly GSTR-6 return
- Common in companies with multiple branches or divisions
6. E-Commerce Operator
An e-commerce operator is any platform that facilitates supply of goods or services, such as Amazon, Flipkart, Swiggy, or Zomato.
Key Features –
- Must register under GST regardless of the turnover
- Required to collect Tax Collected at Source (TCS) under Section 52
- Must file GSTR-8 monthly
- Needs to comply with both platform and vendor-level tax rules
This also includes online service aggregators or marketplaces.
7. TDS Deductor and TCS Collector
Some government departments, public sector units, and large companies are required to deduct or collect tax at source.
TDS (Tax Deducted at Source)
- Applicable to government departments or entities making payments to vendors
- Deducted at 2% (1% CGST + 1% SGST or 2% IGST)
- Must file GSTR-7
TCS (Tax Collected at Source)
- Applicable to e-commerce platforms collecting tax on behalf of sellers
- Must file GSTR-8
These registrations are separate from regular taxpayer registration.
8. Government and UN Bodies (UIN Holders)
Certain organisations are not liable to pay GST, but they may still need to claim refunds on the GST they pay on purchases. For this, they are issued a Unique Identification Number (UIN).
It includes Embassies and consulates, UN agencies or Multilateral financial institutions.
They file returns in Form GSTR-11 to claim refunds.
Summary of GST Taxpayer Types
| Taxpayer Type | Eligibility | Key Returns | Can claim ITC? |
| Regular Taxpayer | Turnover above threshold | GSTR-1, GSTR-3B | Yes |
| Composition Dealer | Turnover up to Rs 1.5 Cr / Rs 50L | CMP-08, GSTR-4 | No |
| Casual Taxable Person | Temporary business, no fixed place | GSTR-1, GSTR-3B | Yes |
| Non-Resident Taxable Person | Foreign supplier without presence | GSTR-1, GSTR-5 | Yes |
| Input Service Distributor | Distributes ITC among branches | GSTR-6 | No (Distributes) |
| E-Commerce Operator | Supplies via an online platform | GSTR-8 | No |
| TDS Deductor | Govt. & certain entities | GSTR-7 | No |
| UIN Holder | UN, Embassies | GSTR-11 | Can claim a refund |
Conclusion
Not only does the GST tax system in India classify taxpayers to simplify compliance obligations, but it also ensures the appropriate levying of tax as per the sectors involved in the economy. Whether you are a small trader, a seasonal business owner, or part of a large multinational, knowing your correct taxpayer type under GST helps avoid legal issues, ensures proper tax filing, and helps in availing eligible benefits.
If you are unsure which category you fall under, it is always wise to consult a GST practitioner or tax advisor to register correctly and file the right forms on time.
References
https://selfservice.gstsystem.in
https://www.gst.gov.in/
