The provisions made under GST define a Casual Taxable Person as any individual who transacts goods and services occasionally while acting as a Principal, Agent or in any other capacity for the furtherance of the business, but does not possess any fixed place of business in the given taxable territory,
Mr. Abhishek has an Art house in Delhi but has plans to exhibit the Art Pieces in an exhibition/event in Mumbai. Under such circumstances, Mr. Abhishek will be considered as a casual taxable person and would be required to apply for registration as a casual taxable person within 5 days prior to the event.
How is Casual Taxable Person different from Regular Taxpayer?
Generally, a regular taxpayer is required to file his returns on a regular basis, maintain accounts as per the GST Act, have a fixed place of business in the given taxable territory, etc. On the other hand, a Casual taxpayer, due to the nature of the business, does not have a fixed place of business and the supplies goods and/or services occasionally in the given taxable territory.
To accommodate the unique requirements of such taxpayers, special provisions have been made under the GST Act for registration of casual taxable persons.
Registration of Casual Taxable Person in GST
Similar to any individual involved in the supply of goods and or services, it is mandatory for a casual taxable person making a taxable supply to get GST registration. Under GST for the casual taxable person, there is no threshold limit for taking registration, however, the casual taxable person cannot exercise the option to pay tax under composition scheme.
Points to be noted:
- There is no special form for the registration, the casual taxable person can use the normal form GST REG-01
- The registration should be completed under the special category at least 5 days prior to the undertaking business.
- Before applying for registration, he should declare his:
- Permanent Account Number (PAN)
- Mobile Number
- E-mail address
- State or Union Territory
P.S: Notification No. 32/2017-CT dated 15th September 2017 exempts casual taxable persons, who make taxable supplies of handicraft goods under Sec 23(2) of the Act from obtaining registration [ subject to certain conditions].
Advance Payment of tax by Casual Taxable Person
A Casual Taxpayer is required to make an 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. On depositing the amount, an acknowledgement shall be issued electronically to the applicant in FORM GST REG-02 and the amount deposited shall be credited to the person’s electronic ledger. The casual taxable person can make taxable supplies only after the issuance of the certificate of registration.
E.g. If Mr. Abhishek is expecting a sale of RS. 1,00,000 and tax rate applicable is 12% then he needs to deposit advance tax of Rs. 12000.
Returns to Be filed
Similar to a regular taxpayer, a casual taxpayer is required to file the monthly/quarterly return forms -GSTR 1 and GSTR 3B.
Validity of Registration Certificate
The certification of registration as a casual taxable person is valid for the period as specified by the taxpayer or 90 days from the effective day of registration (whichever is earlier). The taxpayer can seek an extension on the given certificate by making an advance deposit of tax in an amount equivalent to estimated tax liability (applicable for the extended period). The proper officer may extend the registration for a period not exceeding 90 days.
Refund of 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 deposit can be refunded only after all the returns are filed. In addition, the Casual taxable person can also avail ITC in respect of goods or services or both.
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