Event Management Industry & Casual Registration:
GST Being the state subject, each state where an event management company is registered is a different person.
GST Liability in one state can only be settled with the GST input tax credit of another state.
GST Liability on one state cannot be setoff against in the input tax credit of another state (i.e. CGST & SGST liability of Delhi state cannot be set off against the input tax credit of CGST and SGST of Haryana state)
Event Management company is required to take the registration in each state where:
a. Registered office is situated;
b. Corporate office is situated;
c. The company has its branch office
d. States where company organize regular events.
The problem arises where the company needs to execute an occasional event like a wedding, big corporate event (i.e. Auto Expo in NOIDA), where the personnel of the company visit to another state to execute the event.
If the company is not taking the registration in that state then it has to face the different issues like:
1. Non Availability of Input tax credit
2. Increased event cost
3. Decline in the profitability
4. Losing the business to the competitors (this may be the biggest threat)
The answer to all these problems lies in taking the registration in that particular state where the event is held. But the problem is that the company may or may not have fixed place of business in that state. If the company does not have the fixed place of business in the at state then taking the registration as a casual dealer if the way out.
Casual Dealer:
A Casual taxable person is one who has a registered business in some State in India but wants to affect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State from where he seeks to supply as a Casual taxable person. GST law prescribes the special procedure for registration and also for the extension of the operation period of such Casual taxable persons.
Special consideration for the registration as a casual dealer.
1. Application at least 5 days prior to the commencement of business
2. File the application in form Reg-1 (Part A & Part B)
3. Pay the estimated tax liability in advance
The validity of Registration:
Casual registration is valid for the period of 90 days, however the same can be extended for the further period of 90 day by filing the application in form Reg-11
Return to be filed:
1. GSTR-1: With 10th of the following month
2. GSTR-2: Within 15 of the following month
3. GSTR-3: Within 20 of the following month
Annual return is not required to be filed by the casual dealer.
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