Casual taxable person is the one who has no fixed place of business and undertakes transaction occasionally related to supply of goods and/or services. In this comprehensive guide by earlyGST by H&R Block India, casual taxable person is discussed in detail.

Casual Taxable Person under GST

Last Update Date : May 09, 2018

casual taxable person

Following words of honourable Mr Pranab Mukherjee, “GST is a tribute to the maturity and wisdom of India’s democracy” has captured the true essence of GST. The Goods and Services Tax aimed to eliminate India’s major indirect taxes like VAT, Service Tax, Excise, etc. for simplifying the taxing process for the suppliers of goods and/or services or both. GST’s aim of streamlining the process also includes simplifying the documentation for registration under GST.

Registration under GST is required by a one-time seller as well as a regular business person. Any ‘person’ as defined under the act, if carrying out the sale of goods and/or services or both in a place where he does not own an establishment for his business is referred to as a casual taxable person.

Let us read in detail about the casual taxable person.

Who is a Casual Taxable Person?

A casual taxable person is a person who has undertaken the sale of goods and/or services or both for the furtherance of his/her business, in the taxable territory, as a principal or an agent or in any other capacity where he has not had any fixed place of business.

A casual taxable person must:

  • Compulsorily register himself under GST as there is no threshold limit for the registration condition of such person
  • Apply for registration at least 5 days before the commencing of his business
  • Not exercising the option to pay taxes under the composition scheme as he is not eligible for that
  • Make an advance payment of the amount of tax which is equivalent to his estimated tax liability for the said registration period

Registration

The compulsion of registration under GST arises only when the aggregate turnover of the supplier is above the limit of 10 lakh/20 lakhs, as the case may be. Even so, there are certain exceptions to this. One such exception is the casual taxable person.

Registration for a casual taxable person (hereafter referred to as Casual Taxable Person) is compulsory irrespective of his turnover. No special form is required for his registration, i.e. 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 Permanent account number, mobile number, email address, state or union territory in part A of Form GST REG – 01.
  • The validation of PAN is done online by the common portal from the database maintained by the CBDT and that of the mobile number and email address by sending different OTPs to the said mobile number and email address.
  • On successful verification of the mobile number, email address and PAN, a temporary reference number is generated and communicated to the Casual Taxable Person on the said mobile number and email address.
  • The applicant can electronically apply in part B of Form GST REG – 01 using the above generated temporary number and get it verified through the electronically verified code, along with documents specified in the said form, either directly or through a Facilitation Centre by the Commissioner.
  • The applicant must make the 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 in Form GST REG – 02.

Validity of Registration for Casual Taxable Person

The certificate of registration for a Casual Taxable Person is valid for the period specified in the certificate or 90 days, from the effective date of registration, whichever is earlier. An extension may be granted to the applicant if he intends so however the extension must limit to 90 days and will be allowed only on payment of additional amount tax equal to the estimated tax liability. Form GST REG-11 must be filled and submitted for acquiring an extension. The extension will be granted only if the officer verifying the application is satisfied with the reason and the procedure.

Returns to be Furnished

A casual taxable person is also required to file returns of the tax paid by him/her. He is required to furnish the returns electronically through a common portal, either directly or through a facilitation centre notified by the commissioner. He needs to furnish the following:

  • Form GSTR-1 giving the details of outward supplies or goods or services to be filed on or before the 10th day of the following month
  • Form GSTR-2 giving the details of the inward supplies to be filed after the tenth but before the fifteenth day of the following month
  • Form GSTR-3 to be filed after the 15th day but before the 20th day of the following month

It should be noted that casual taxable person shall not be required to file annual returns like the normal taxable person.

Refunds to a Casual Taxable Person

A casual taxable person is eligible for refunds of the advance tax paid by him at the beginning after adjusting his tax liability. This amount can be refunded only when all the required returns are furnished, for the period for the registration is in force, on time. The refund relating to balance in the electronic ledger to be made in serial no. 14 of Form GSTR-3 .

Difference Between

A Casual Taxable Person and a Non-Resident Taxable Person

A non-resident taxable person occasionally visits India for the provision of goods and/or services, whereas a casual taxable person is residing in India.
The definition on the non-resident taxable person as per section 2(69) of GST law of India, a taxable person residing outside India and coming to India to occasionally make a sale of goods and/or services or both in the country but has no fixed place of business in India.

A Regular Taxable Person and a Casual Taxable Person

A regular taxable person is not a casual taxable person which means he has a fixed place of business in the location where he is practising his business. A regular taxable person is eligible for composition scheme levy. A regular taxable person files annual returns unlike the monthly returns of the casual taxable person.

Thus, any person carrying out the supply of goods and/or services in a place not falling in his taxable territory and who does not own any establishment in that place is referred to as a casual taxable person. He must get himself registered in such states where he intends to carry out business activities and must apply for registration at least 5 days before commencing the business activities.

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