Casual taxable person under GST

"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 has to make an advance deposit of tax of an amount equivalent to his estimated tax liability for the period for which the registration is sought. Such advance tax should be paid to the extent of the net tax liability i.e. after considering the due eligible ITC.

Registration

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.

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 obtaining registration.

Process of Registration

• Apply for Registration by declaring Permanent Account Number (PAN), mobile number, e-mail address, State or Union territory in Pat A of FORM GST REG-01 on the portal.
• Validate and verify PAN, mobile number and E-mail through OTP
• On successful verification of all, a temporary reference number is generated and communicated to the applicant on the said mobile number and e-mail address.
• Using this reference number generated, the applicant shall fill application in Part B of FORM GST REG-01, duly signed or verified through electronic verification code.
• The applicant will be given a temporary reference number for making the mandatory advance deposit of tax for an amount equivalent to the estimated tax liability. The same shall be shown in his Electronic Cash Ledger.
• Once it appears in ledger, The registration certificate is issued electronically

Validity of Registration

The certificate of registration is valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.

Extension of period of Registration

In case the casual taxable person intends to extend the period of registration, an application in FORM GST REG-11 shall be submitted electronically before the end of the validity of registration granted to him. The validity period of ninety days can be extended by a further period not exceeding ninety 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 been deposited.

Long-running exhibitions: In case of long running exhibitions (i.e. beyond 180 days), the taxable person must obtain normal registration and should not obtain registration as a casual taxable person. Copy of the allotment letter granting him permission to use the premises for exhibition is considered as proof of Place of Business. Once the exhibition is over, the registration can be surrendered.

Returns

The casual taxable person is required to furnish the following returns:

(a) FORM GSTR-1 giving the details of outward supplies of goods or services

(b) FORM GSTR-3B giving the summary of supplies along with payment of tax.

*If a CTP has opted for the QRMP scheme, he has to file IFF/GSTR-1 and GSTR-3B on a quarterly basis.

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

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 author can be reached at shubhikhandelwal30@yahoo.com