Casual Taxable Person – Tax implication Under GST

‘Casual taxable person’ (CTP) means a person who occasionally undertakes transactions involving supply of goods/ services in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a UT where he has no fixed place of business.

Registration:

CTP making taxable supply in India has to compulsorily take registration. The CTP can make taxable supplies only after the issuance of the registration certificate. There is no threshold limit for registration. Casual Taxable persons making supply of specified handicraft goods need to register only if their aggregate turnover crosses Rs. 20 Lakh (Rs. 10 lakh for in case of Special Category States, other than the State of Jammu and Kashmir.). A casual taxable person cannot exercise the option to pay tax under composition levy. He has to apply for registration in form GST REG-01 along with the advance tax deposit, which is equivalent to estimated tax liability at least 5days prior to commencing his business in India. A CTP is required to provide his PAN No., which would be validated by GSTN from the CBDT’s database.

A CTP has to apply for registration at least 5days prior to the commencement of business. in FORM GST REG-01.He shall , declare his PAN, mobile number, e-mail id, State or UT in Part A of FORM GST REG-01 on the common portal. The details provided shall be validated online by the common portal

The certificate of registration shall be valid for the period specified in the application for registration or 90days from the effective date of registration, whichever is earlier. Further extension of 90 days can be applied only on application for extension in form GST REG-11 along with advance tax deposit on the estimated tax liability.

Returns:

The CTP is required to file the following returns on the common portal

a) FORM GSTR-1 giving the details of outward supplies of goods or services to be filed on or before the 10^th day of the following month.

b) FORM GSTR-2, giving the details of inward supplies to be filed after 10^th but before the 15^th day of the following month.

c) FORM GSTR-3 to be filed after fifteenth day but before the 20^th day of the following month.

d) FORM GSTR-3B to be filed but before the 20^th of the following month.

It may be mentioned that presently only FORM GSTR-1 and FORM GSTR-3B is required to be filed.

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 CTP 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 registration certificate was granted to him had remained in force. The refund relating to balance in the electronic cash ledger has to be made in the last FORM GSTR-3 return required to be furnished by him (instead of FORM GST RFD 01).