Who is a Casual Taxable Person

Who is a Casual Taxable Person?

Casual taxable person means the one who has no fixed place of business and he occasionally and temporarily supply goods or services or both in the course or furtherance of business in a taxable territory.

In this case, one has to take registration as a casual taxable person in that state where it is desirous to do business for a temporary period.
Example-1 Arjun is an interior designer and he has an office in Delhi. Mr Gokhle impressed by his work refers to the work of Arjun to one of his friend Amrit to design the office interior of later in Mumbai. Arjun has no fixed place of business in Mumbai, he will have to get himself register as a Casual Taxable Person in Mumbai

Registration Requirements

• For a casual taxable person, there is no threshold limit applies to for registration, unlike other taxpayers.
• A casual taxable person except those making a supply of specified handcrafted goods making taxable supply in India has to compulsory take registration irrespective of their turnover.
• A casual taxable person making a supply of specified handcrafted goods need to register if their aggregate turnover crosses Rs.20 lacs. (Rs. 10 lakh for on case of special category states, other than state Jammu and Kashmir).
• He must make an application for registration at least five days before commencing the business in India in Form GST-REG 01 after depositing the advance tax liability computed on the estimated supplies.
• A casual taxable person cannot opt for the composition scheme.
  

  Process of registration under GST

• Registration for a casual taxable person (hereafter referred to as a casual taxable person) is compulsory irrespective of his turnover. Form GST REG-01 is to be submitted.
• The requisites for registration and the process can be explained as follows:-
• To apply for registration, the casual taxable person must declare his PAN, mobile number, mobile number, e-mail address, state or union territory in part A of Form GST REG-01.
• The validation of PAN is done online by common portal from the database maintained by the CBDT and that of mobile number and e-mail address by sending different OTPs to the said mobile number and email address.
• On successful verification of the mobile number, emails address and PAN a temporary reference number is generated and communicated to the casual taxable person on the said mobile number and e-mail address.
• The applicant can electronically apply in part B of Form GST REG-01 using the generated temporary number and get it verified through the verified code, along with documents specified in the said form, either directly or through a facilitation centre by the commissioner.
• The applicant must take a mandatory advance payment of tax for an amount equivalent to the estimated tax liability of such person for the period for which registration is sought.
• The said deposit appears in the electronic cash ledger of the applicant and only after that the registration certificate shall be issued electronically. Once the amount is deposited; an acknowledgement shall be issued to the applicant electronically on form GST REG-02.

The validity of the registration certificate

A casual taxable person can supply the goods or services or both only after the registration certificate is issued to it.

With the application of registration an advance tax to be paid on the estimated turnover.

Only after paying the advance tax liability, the registration certificate shall be granted to him.

This certificate of registration shall be valid for a period as is mentioned in the application for registration or 90 days from the date of registration, whichever is earlier.
Example-2 In the ex-2 Mr Arjun estimates his turnover to be of Rs.5, 00,000. He shall  pay advance tax liability of Rs.90, 000 (GST rate is 18% on interior designing services)

Extension of the registration period

A casual taxable person can also file an application in Form GST REG-11 electronically through the common portal for seeking the extension of the period of registration so specified in the earlier registration certificate.

But, the application for the extension of the registration must be made before the end of validity of the registration provided to him.

Also, the validity period of 90 days can be extended for another 90 days but not more than 180 days in total after the payment of additional advance tax.

This advance tax amount is equal to the approximate tax liability for which such an extension is seeking by the casual taxable person.

Return Forms

• GSTR-1 Outward supplies of goods or services to be filed on or before the 10^th day of the following month.
• GSTR-2 Inward supplies to be filed after 10^th but before the 15^th day of the following month.
• GSTR-3 to be filed after 15^th day but before the 20^th day of the following month. 
• GSTR-3B It is to be file before the 20^th day of the following month.
  presently only FORM GSTR-1 and Form GSTR-3B is required to be filled.

Click here to learn more about “Types of GST returns“

Refund of the excess Tax Liability Paid

The casual taxable person shall apply for the refund of any balance of advance tax deposited by him after adjusting his tax liability if any balance remains in Electronic Cash Ledger in Form GSTR-3 instead of Form GST RFD 01.

The remaining advance tax deposit can be refunded only when all the returns have been furnished for the period for which certificate of registration was granted to him.