CA Dilip Jain
Introduction:-
Small businessmen or Professionals (Such as fashion designer, trainers, and musicians) providing taxable goods or services may find that they have to register under GST if the term Casual Taxable Persons applied to them. Casual taxable person is defined under GST Section 2(20) as :
“ 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.
This Registration will be required even if they fall below the threshold limit for GST Levy. Currently the exemption limit for GST is a Turnover of Rs 20 Lakh (Rs 10 lakh in NE States)
For example, A Jeweller who has a showroom in Bangalore but participates in exhibition cum sale in another city would fall under “Casual Taxable Person” Category. But if he sends consignment from his Bangalore store, then it would be an Interstate sales and would not require his registration as a Casual Taxable Person.
Legal Provisions’ Under GST:
• Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,-
(ii) Casual taxable persons making taxable supply. (Section 24 of CGST Act, 2017)
Thus, As per Section 24, a person will be compulsory required to register under GST irrespective of his Turnover.
• Normally a Registered person is required to apply for registration within 30 days from the date on which he becomes liable for registration (Section 25). But as per proviso to sub section (1) of Section 25 a Casual Taxable person shall apply for registration at least 5 days prior to commencement of business.
• The certificate of registration issued to a casual taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier and he shall make taxable supplies only after the issuance of the certificate of registration (Section 27).
• But the Proper officer may extend said period of 90 days by a further period not exceeding 90 days.
• A Casual Taxable person shall be required to make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which registration is sought. The amount deposited shall be credited the electronic cash ledger of such person.
• Where an extension is granted by proper officer, he shall be required to deposit additional amount of Tax.
• A Casual Taxable person shall be required to furnish an Annual Return for every financial year in Electronic form on or before the thirty first day of December following the end of such financial year.
• The amount of advance tax deposited by casual taxable person shall not be refunded unless he furnished all the return required under Section 39. (Sub Section (13) of Section 54).
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Then what is the use of inter-state supplies on payment of IGST? Where is the dividing line or what is the criteria to determine whether a particular supply, especially of services is inter-state supply or requires the supplier to be registered as casual taxable person in the destination state. Why payment of IGST by the supplier will not suffice the purpose? What is the MEANING of “undertakes transactions involving the supply of goods or services or both in the course or furtherance of business” and how it is different from inter-state supply?
We are doing new registration for casual taxable person but there are some doubt as follow
1 If we pay Advance payment on estimate turnover, then when can I claim for ITC ?
2 Which GSTR form is suppose to be filed ( monthly/Quarterly/Annually)
3 The balance amount will be refunded or Adjusted ?
E.g. : Suppose tax liability is Rs. 5000/- after sale and if we have done advance payment of Rs. 6000/- then Balance amount of Rs 1000/- will be Refunded or Adjusted ?
A Casual Taxable person shall be not required to furnish an Annual Return for every financial year in Electronic form