TEMPORARY GST REGISTRATION FOR CASUAL TAXABLE PERSON
If any individual undertakes occasional transactions, which involve the supply of goods or services or both as a party or as an agent or in any other capacity in any state or UT where he has no fixed address to operate. A GST Registration of a casual taxable person is mandatory for the person irrespective of annual aggregate sale turnover.
Casual taxable persons or occasional taxpayers are given
special treatment under GST. The Goods and Service Tax Act defines a casual taxable
person as a person who occasionally undertakes transactions that involve the
supply of goods or services or both. Hence, individuals running temporary businesses in fairs or
exhibitions or seasonal businesses will need to get casual taxable person GST
registration. Casual taxable person GST registration is necessary
irrespective of the annual turnover, and the process must be initiated at least
five days before the business undertaking. GST registration applications for
casual taxable persons can be made using FORM GST REG-01.
Similar to any other individual, GST registration is mandatory for casual taxable persons. GST registration is mandatory for all casual taxpayers. There is no threshold limit for registering as a casual taxpayer. However, the casual taxpayer cannot exercise the option of a composition scheme.
The casual taxpayer has to make an advance deposit for the amount equivalent to the estimated tax liability. On depositing the amount, an acknowledgment should be electronic to the applicant in Form GST REG 02. The casual taxable person will be able to make taxable supplies only after the issuance of the certificate of registration.
Similar to the regular taxpayer, a casual taxpayer is required to file the monthly/ quarterly return Form- GSTR 1 and GSTR - 3B.
The Validity of the Registration Certificate
The registration certificate as a casual taxable person is valid for the period specified by the taxpayer or 90 days from the effective day of the registration, whichever is earlier. The taxpayer can seek an extension on the given certificate by making an advance deposit of the tax amount that is equivalent to the estimated tax liability ( that is liable for the extended period).
WHO IS EXEMPTED FROM CASUAL TAXABLE PERSON GST REGISTRATION?
Exemption from GST registration for a casual taxable person
has been provided vide notification no. 56/2018 – Central tax dated 23rd
October 2018. The below-mentioned list provides the particular category of the
casual taxable person who is being exempted from obtaining the GST registration
–A casual taxable person who is engaged in making
inter-state supplies of handicraft goods. However, the essential condition
for claiming the exemption is that the handicraft goods should have been made
by hand (even though some tools or machinery may also have been used in the
process). Further such handicraft goods should be graced with visual
appeals like ornamentation or in-lay work or some similar work of a substantial
nature, possess distinctive features, which can be aesthetic, artistic, ethnic,
or culturally attached, and are amply different from mechanically produced goods
of similar utility; and A casual taxable person who is engaged in making
inter-state supplies of specified items when such items are made by the craftsmen
primarily by hand even though some machinery may be used in the process.
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 can be refunded only after all the returns
are filed.