What is a Casual Taxable Person in GST?

What is a Casual Taxable Person in GST?

Introduction

“Casual taxable person” means a person who occasionally undertakes transactions involving 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 State or a Union territory where he has no fixed place of business. A casual taxable person making taxable supply in India has to compulsorily take registration. There is no threshold limit for registration.

A casual taxable person cannot exercise the option to pay tax under composition levy. He has to apply for registration at least five days prior to commencing his business in India.

A casual taxable person has to make an advance deposit of tax in an amount equivalent to his estimated tax liability for the period for which the registration is sought.




A casual taxable person cannot exercise the option to pay tax under composition levy. He has to apply for registration at least five days prior to commencing his business in India.

A casual taxable person has to make an advance deposit of tax in an amount equivalent to his estimated tax liability for the period for which the registration is sought.


  


There is no special form to register as a casual taxable person. The normal form GST REG-01 which is used by other taxable persons can be used for registration by casual taxable person.

All persons classified as casual taxable persons should mandatorily obtain GST registration, irrespective of the annual aggregate turnover. Further, the casual taxable person shall apply for GST registration at least 5 days prior to the commencement of business. 

The liability to register under GST arises when the person is a supplier and the aggregate turnover in the financial year is above the threshold limit of 20 lac rupees. However, there are certain categories of suppliers who are required to get compulsory registration irrespective of their turnover. The threshold limit of 20 lac rupees is not applicable to them. One such supplier would be a Casual Taxable Person (hereafter referred as CTP). A Casual Taxable person cannot opt for Composition Scheme. A CTP has to obtain a Temporary Registration which is valid for a maximum period of 90 days in the State from where he seeks to supply as a Casual taxable person. A CTP is required to make the advance deposit of GST (based on an estimation of tax liability). 

The casual taxable person can make taxable supplies only after the issuance of the certificate of registration. The certificate of registration shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.


Registration Process


Returns to be filled by casual taxable persons

Following are the returns which shall be filled by the casual taxable person:


Return

Time Period for filing

FORM GSTR-1

giving the details of outward supplies of goods or services to be filed on or before the tenth day of the following month.

FORM GSTR-2

giving the details of inward supplies to be filed after tenth but before the fifteenth day of the following month.

FORM GSTR-3

after fifteenth day but before the twentieth day of the following month.

However, a casual tax person shall not be required to file any annual return as required by a normal registered taxpayer.

FORM GSTR-3B

before the twentieth day of the following month.



Refund by Casual taxable person
The casual taxable person is eligible for the refund of any balance of the advance tax deposited by him after adjusting his tax liability. The balance advance tax deposit can be refunded only after all the returns have been furnished, in respect of the entire period for which the certificate of registration was granted to him had remained in force. The refund relating to balance in the electronic cash ledger has to be made in serial no. 14 of the last FORM GSTR-3 return required to be furnished by him (instead of FORM GST RFD 01).


Validity of GST Registration

The validity of GST registration is the validity period as mentioned in the GST registration application or 90 days from the date of registration, whichever is earlier. The sample GST registration certificate below shows validity period being specified only for casual taxable persons and non-resident taxable persons under GST.



Extension of GST Registration

In case if the concerned individual needs to extend beyond the date mentioned in the GST registration certificate, then the concerned individual shall apply through FORM GST REG-11. Along with the request for extension of validity period, advance GST deposit must also be made by the taxpayer based on the expected tax liability. If the officer verifying the application is satisfied and advance GST deposit is made, the GST registration can be extended by up to another 90 days.





Frequently Asked Questions (FAQ)


Q1. I want to take a Registration as a Casual Taxable Person but I can’t find the option.

The option to register is in the New Registration Application for a normal taxpayer.

1.    In PART A of the New Registration Application, select Taxpayer.
2.    In PART B of the New Registration Application in the Business Details section, select Yes under "Are you applying for registration as a casual taxable person?"
3.    Enter the estimated values of supplies and estimated net tax liability as CGST + SGST / IGST and cess for the period for which registration is applied and click the GENERATE CHALLAN button. This option is also available after all tabs of Part B of the Registration application is filled up.
4.  Make the advance tax payment using the payment modes available on the GST Portal and then complete Part B of the registration application and submit it.
5.  Your registration will be granted after due processing by the concerned Tax Official.

 

Q2. I have already extended my initial registration once and cannot extend it a second time as per prevailing laws. What do I do if my extension is about to expire and my business has not concluded?

In such a case, you are required to obtain registration as a normal taxpayer in the concerned state.


Q3. Can a Casual Taxable Person take multiple registrations in a State?

In case a Casual taxable person has multiple business verticals within one state, the Casual taxable person can apply for multiple registrations within the state.


Q4. What is the registration criteria for a casual taxable person?
There is no threshold limit for registration. A casual taxable person has to take compulsory registration, that too five days prior to commencing his business in India.


​Q5.  I have deposited advance tax but do not want to continue the business. How shall I get my money back?
You can apply for refund of advance tax deposited at the time of filing of application for surrender of registration.





For more information on this visit TAXAJ.
Posted By Ramesh Kumar Gupta
(Team TaxaJ)

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