GST

Casual Taxable Person under GST

This article throws light over the concept of casual taxable person registration under GST. A casual taxable person is a person who has no fixed place of business but has to take GST registration. The reason is due to the goods or services supplied by him are occasionally.

“Casual taxable person” can be defined as- the person who occasionally undertakes the transaction involving the 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 given state or Union Territory, where he has no fixed place of business.

The person has the capacity to act as the agent or principal or both here in the continuance of his business.

Features of the Casual Taxable Person

1. The casual person has to be mandatorily registered.
2. There is no threshold of the Registration.
3. No option for the casual person to opt the composition scheme.
4. The Registration must be five days before the commencement of his business in India.
5. He has to deposit the advance tax equivalent to his estimated liabilities in the period of his Registration sought as casual taxable person registration.

The procedure of Casual Taxable Person Registration

He has to undertake the Registration compulsorily, to make a taxable supply in India.

Threshold limit – Casual Taxable Person under GST

The liability under the GST arises, when the supplier and the aggregate turnover in the given financial year is above 20 Lakhs rupees.  Some suppliers have to mandatory get registered, but in the case of casual taxable person registration is irrespective of the turnover limit.

Application Process:

1. Registration under Special Category

The Registration will be done in a particular category at least five days before starting business in India.

2. No special Form

The requirement of special form is not required for the casual taxable person registration

3. GST REG-01- FORM

The form which is used for the taxable person registration is GST REG-01. It is the same form which is used for the Registration of individual in GST.

4. Some declarations

Before applying for the casual taxable person registration in GST, some declarations have to be made such as the Permanent Account Number (PAN), E-Mail Address, and current state or Union Territory.

Validity of Registration

The registrations are valid for the period specified in the registration form or 90 days from the effective date of Registration, whichever earlier is to be considered.

Returns under GST for casual Taxable person registration

1. Form GSTR-1-outward supplies of the goods or services, for which the details have to be given on the 10^th day of the month/
2. Form GSTR-2- inward supplies have to be filled after the tenth day but before the fifteen-day, the details have to be given.
3. Form GSTR-3- details have to be filled after the twelfth day but before the fifteenth day.

Frequently Asked Questions over casual Taxable Persons Registration

Q1.what is the difference between the casual taxable person and regular tax person?

The difference is that a regular taxpayer is the person, who is required to file his returns on a regular basis,   and maintains the account is as per the GST. They have a fixed place of business in the given taxable territory.  A casual taxpayer, due to the course of his company, there is no fixed place of business, and the supplies of goods or services.

Q2. Can supplies be made before the certificate of Registration?

A casual taxable person can make only supplies of the goods or services, after receiving the certificate of Registration.

Q3. For how many days the certificate of Registration is applicable?

The certificate of Registration for casual taxable person registration is valid for up to 90 days.

Q4. Which form is required to be submitted for extending the period of Registration?

The Form GST R-11 shall be submitted electronically, through the common portal either directly or through facilitation centre notified by the commissioner, before the end of the validity period granted to him.

Q 5. Is refund applicable on casual taxable person registration?

The casual taxable person can take the refund of the excess amount of tax liability deposited which will be refunded by the Tax Authorities. It will be refunded after the necessary returns have been furnished for the registration period.

Q6 which form to be filed for the refund?

The application for the collection of refund of the balance of tax liability shall be collected in the serial number 14 of the final form GST Return-3.

Q7. What amount required to be deposited as advance tax while taking Registration as a casual taxable person (CTP) should be 100% of the estimated gross tax liability or the estimated tax liability payable in cash should be calculated after deducting the due eligible ITC which might be available to CTP?

 It has been held,  while making application for the Registration as a casual taxable person, under the FORM GST REG-1 (S. No. 11), it seeks information regarding the “estimated net tax liability” only and not the gross tax liability.

 It is clarified that the amount of advance tax for a casual taxable person is required to deposit. At the same time, obtaining Registration should be calculated after considering the due eligible ITC which might be available to such taxable person.

Conclusion

It can be concluded that, that for GST Registration– of a casual taxable person registration, we clarify when the person is treated as a casual taxable person or not.

 It has been clarified that if he stays less than 182 days( 120 days after the Finance Act, 2020^[1]) , the person shall not be treated as a casual taxable person, and the person would be required to obtain the Registration like a normal taxable person. Like, a normal taxable person he should upload documents and he has to submit proof of the place of business. The consent letter of the concerned premises owner would be sufficient. He would not be required to pay the advance tax. He can surrender the Registration, once the purpose is resolved of his business.

Read our article:Non-Resident Taxable Person under GST: Legal Definition