Provisions related to Casual Taxable Person under GST
Who is a casual taxable person?
- “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 in a taxable territory
- Service may be provided as a principal, agent or in any other capacity
- Casual taxable person is not required to have a fixed place of business.
- For instance, Mr. A has his business in Mumbai. He went to Bangalore to sell some of his goods in an exhibition. Now he will have to take registration in Karnataka as a Casual Taxable Person
Are there any registration requirements for a Casual Taxable person?
- A casual taxable person making taxable supply in India has to mandatorily get registered under GST (no benefit for threshold limit is available).
- A casual taxable person cannot exercise the option to pay tax under composition levy.
- He has to apply for registration at least 5 days prior to commencing his business in India.
- A casual taxable person has to make an advance deposit of tax or an amount equivalent to his estimated tax liability for the period for which the registration is sought.
What registration procedure is a Casual Taxable Person required to follow?
1.A casual taxable person can apply for registration by filling form GST REG-01.
2. A casual taxable person, before applying for registration, has to declare the following in Part A of FORM GST REG-01 on the common portal.
ii. mobile number
iii. e-mail address
iv. State or Union territory
3. On successful verification of the PAN, mobile number and e-mail address, a temporary reference number will be generated and communicated to the applicant’s mobile number and e-mail address.
4. Using this reference number generated, the applicant shall electronically submit an application in Part B of FORM GST REG-01.
5. The applicant will be given a temporary reference number by the Common Portal for making the mandatory advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.
6. The registration certificate shall be issued electronically only after the said deposit appears in his electronic cash ledger.
7. The amount deposited shall be credited to the electronic cash ledger of casual taxable person and an acknowledgement shall be issued electronically to the applicant in FORM GST REG-02.
8. The casual taxable person can make taxable supplies only after the issuance of the certificate of registration.
What is the validity of the certificate of registration?
The certificate of registration shall be valid for, earlier of
1.the period specified in the application for registration
2. 90 days from the effective date of registration
Can a casual taxable person extend the period specified in the registration certificate?
- An application in FORM GST REG-11 shall be submitted if the casual taxable person intends to extend the period of registration, before the end of the validity of registration granted to him.
- Period of extension cannot exceed 90 days.
- The extension will be allowed only on payment of the amount of an additional amount of tax equivalent to the estimated tax liability for the period for which the extension is sought has to be deposited.
What returns are to be filed by a Casual Taxable Person?
The casual taxable person is required to furnish the following returns:-
- FORM GSTR-1 giving the details of outward supplies of goods or services to be filed on or before the 10th of the following month.
- FORM GSTR-2, giving the details of inward supplies to be filed after 10th but before the 15th of the following month.
- FORM GSTR-3 to be filed after the 15th but before the 20th of the following month.
- However, a casual tax person is not required to file any annual return as required by a normal registered taxpayer.
Is the benefit of refund allowable to a 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 will refunded only after all the returns have been furnished, for the entire period for which the certificate of registration was granted to him.
- 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.