GST- Casual Taxable Person

 

Introduction

“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 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.

A casual taxable person has to make an advance deposit of tax in an amount equivalent to his estimated tax liability for the period for which the registration is sought.

Registration:

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 registration by casual taxable person. A casual taxable person, before applying for registration, declare his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

After verification of PAN, email and mobile no., a TRN will be generated and using  this  reference  number  generated, the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly signed or verified through electronic verification  code,  along  with  the  documents  specified in the said Form at the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

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. The registration certificate shall be issued electronically only after the said deposit appears in his electronic cash ledger. The amount deposited shall be credited to the electronic cash ledger of casual taxable person. On depositing the amount, an acknowledgement shall be issued electronically to the applicant in FORM GST REG-02.

The  casual  taxable  person  can  make  taxable  supplies only after the issuance of the certificate of registration. The certificate of registration shall be valid for the period specified in the application for registration or 90 days from the effective date of registration, whichever is earlier.

In  case  the  casual  taxable  person  intends  to  extend the period of registration indicated in his application of registration, an application in FORM GST REG-11 shall be submitted electronically through the Common Portal, either  directly  or  through  a  Facilitation  Centre  notified by the Commissioner, before the end of the validity of registration granted to him. The validity period of 90 days can be extended by a further period not exceeding 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.

Returns:

The casual taxable person is required to furnish the GSTR-1, 2 and 3 returns electronically through the common portal. However, a casual tax 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 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 (instead of FORM GST RFD 01).

Leave a Comment