Temporary GST Registration for Casual Taxable Person
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.
In this special category, a GST number is required to obtain at least 5 days prior to undertaking the business transaction. Temporary GST requires for putting/organizing Exhibitions.
WHO IS A CASUAL TAXABLE PERSON UNDER GST REGISTRATION?
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.
DOCUMENTS REQUIRED FOR TEMPORARY GST REGISTRATION FOR CASUAL TAXABLE PERSON:
- Scanned copy of PAN (Indian National)
- Scanned copy of Passport (for Foreign Nationals and NRIs)
- Scanned copy of Voter’s Id/ Passport/ Driver’s license
- Scanned Passport sized photograph.
- Mobile Number
- Email
Process of Temporary GST Registration for Casual Taxable Person
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.
Advance Payment of the Tax by the Casual Taxpayer
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.
Returns Filing
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).
Refund of the Advance Deposited
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.
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 list of specified items is as under
The list of specified items are as under
| Sr. No. | items | HSN |
| 1 | Leather articles | 4201, 4202 and 4203 |
| 2 | Carved wood products | 4415, 4416, 4419 and 4420 |
| 3 | Woodturning and lacquerware | 4421 |
| 4 | Bamboo products | 46 |
| 5 | Grass, leaf/reed/fiber products, mats, pouches, wallets | 4601 and 4602 |
| 6 | Paper mache articles | 4823 |
| 7 | Textile (handloom products) | Including 50, 58, 62 and 63 |
| 8 | Textiles hand printing | 50, 52 and 54 |
| 9 | Zari thread9 | 5605 |
| 10 | Carpet, rugs, and durries | 57 |
| 11 | Textiles hand embroidery | 58 |
| 12 | Theatre costumes | 61, 62 and 63 |
| 13 | Coir products | 5705 and 9404 |
| 14 | Leather footwear | 6403 and 6405 |
| 15 | Carved stone products | 6802 |
| 16 | Stones inlay work | 68 |
| 17 | Pottery and clay products which include terracotta | 6901, 6909, 6911, 6912, 6913 and 6914 |
| 18 | Metal table and kitchenware | 7418 |
| 19 | Metal statues, images or statues, vases, urns, and crosses of the types used for the decoration of metals of chapters 73 and chapter 74 | 8306 |
| 20 | Metal Bidriware | 8306 |
| 21 | Musical instruments | 92 |
| 22 | Horn and bone products | 96 |
| 23 | Conch shell crafts | 96 |
| 24 | Bamboo furniture, cane/Rattan furniture | 94 |
| 25 | Dolls and toys | 9503 |
| 26 | Folk paintings, Madhubani, Patchitra, Rajasthani miniature | 97
|
Conditions for Claiming Exemption
The exemption is available only if the person is availing the benefit of notification no. 03/2018 – integrated tax dated 22nd October 2018;
The total aggregate value of such supplies, to be computed on all India basis, should not be more than the amount of aggregate turnover above which the supplier is liable to be registered in the State or Union Territory; and
A person is required to obtain PAN (i.e., Permanent Account Number), and it is also necessary to generate an E-way bill following rule 138 of the Central Goods and Service Tax Rules, 2017.
Difference between Regular Tax Payers and Casual Tax Payers
| Regular Tax Payers | Casual Tax Payers |
| Is registered under GST and not classifiable as a casual taxable person or a non-resident taxable person) | A casual taxable person is someone who carries out business occasionally as a principal-agent or any agent capacity. | |
| A regular taxable person has a fixed location of the business within India. | The place of business is not fixed as it would be seasonal. |
| Can register as under composition scheme | Cannot register under composition scheme |
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Created & Posted By Ravi Kumar
CA Article at TAXAJ
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