Article explains  about the Casual taxable Person (CTP) under Central Goods and Services Tax Act, 2017. It explains about Meaning of Casual Taxable Person, Documents required for Casual taxable Person GST Registration,  How to Apply for Registration as Casual taxable Person, Extension of Period of Registration, Returns to be Furnished by casual taxable person and GST Refund in case of Casual taxable Person.

Casual taxable Person- Casual taxable person means a person who supplies taxable goods or services occasionally in a taxable Territory where he does not have a fixed place of business. The person can act as a Principal or agent or in any other capacity supply goods or services for the furtherance of business

Example:

An example of casual registration is participation in an exhibition in another state. When a person participates in an exhibition outside the state where his usual place of registration is, then he should register as a casual taxable person in order to undertake sale and purchase of goods in that other state.

1. Registration as Casual taxable Person

A Casual Taxable person cannot opt for Composition Scheme.

A CTP has to obtain a Temporary Registration which is valid for a maximum period of 90 days in the State from where he seeks to supply as a Casual taxable person. A CTP is required to make the advance deposit of GST (based on an estimation of tax liability).

Let’s take our previous example,

Say Mr.X estimates his taxable services at Rs. 200000. He is required to make an advance deposit of Rs.36000 (18% of Rs.200000) to obtain temporary registration.

2. Documents required for Casual taxable Person GST Registration

1. Business/Trade Name, Copy of PAN of the applicant.

2. Mobile No. and Email address for communication and OTP purposes.

3. Existing registration of the applicant if any. (Ex: GSTIN, Incorporation document or registration with any other authority like MCA)

4. Copy of Incorporation document evidencing the existence of the applicant (Eg: Copy of Partnership deed, company incorporation certificate etc.)

5. Details of promoters/partners/directors etc of the applicant along with copy of their address proofs and ID proofs such as Aadhar card, PAN, Photo, Email ID, Mobile No.

6. Bank Details: documents such as Cancelled Cheque of firm/Copy of passbook or bank statement with the name of the applicant are required.

7. Details of Principal Place of Businesse address alongwith documents evidencing ownership of the premises such as Electricity Bill or Property Tax Receipt or legal ownership document of the place where business is to be carried on.

8. If any additional place of business the same documents as above are required.

9. Nature of business carried out by applicant. Also specify top 5 products or services provided by the applicant.

10. Authorization letter provided on the applicant’s Letter Head to authorize one or more persons for signing all documents related to GST. Authorization letter to be signed by the persons other than the authorized signatories. Authorisation letter is not required in case of proprietorship.

11. State specific registration if applicable.

12. Payment of tax (challan) on the estimated supplies made during the period of Casual registration.

3. How to Apply for Registration as Casual taxable Person

  • Apply for registration by declaring PAN, mobile number and email in PART A of Form GST REG -01
  • Validate and verify PAN, mobile number and email through OTP
  • On Successful Verification, Temporary Reference Number is Generated using which advance tax is to be made. As Acknowledgement for deposit, Form GST Reg 02 will be given electronically.
  • Using the reference number generated, the applicant can fill and submit PART B of Form GST REG – 01 electronically
  • The Registration Certificate, shall be issued electronically after the tax deposit appears in electronic cash ledger
  • After receipt of Registration Certificate, CTP can make taxable supplies
  • Validity of certificate- Period Specified in application or 90 days from effective date of registration, whichever is earlier

4. Extension of Period of Registration

Apply in FORM GST REG-11 before the end of validity of registration. An extension can be made for a further period not extending 90 days. The extension will be allowed only on deposit of additional tax liability for the extended period.

5. Returns to be Furnished by casual taxable person

The casual taxable person is required to furnish the following returns

1. GSTR-1 is a Details of outward supplies of goods or services of a particular month. This return is to be filed before the 10TH day of the following month Or Quarter end based on Turnover.

2. GSTR-2 is a Details of inward supplies of a particular month. This return is to be filed before the 15th day of the following month.

3. GSTR-3 is a Details of both the purchases and sales of a particular month. This return is to be filed before the 20th day of the following month.

4. GSTR-3B is a brief summary of both the purchases and sales of a particular month. This return is to be filed before the 20th day of the following month.

Note: Currently, only GSTR-1 and GSTR-3B are required to be filed by a registered person under GST.
A casual tax person is not required to file an annual return as required by a normally registered taxpayer.

6. Refund in case of 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).

(The author is the founder of solutiontax.in an platform for filing income tax returns, company incorporation, accounting/bookkeeping, audits related compliances etc. The author can be however contacted for further clarification at 9654182791 or via mail at caajay92@gmail.com)

DISCLAIMER:- This Blog is for the purposes of information / knowledge and shall not be treated as solicitation in any manner or of for any other purposes whatsoever.

Author Bio

Qualification: CA in Practice
Company: Ajay Satish Kumar and Associates
Location: New Delhi, IN
Member Since: 01 Jun 2020 | Total Posts: 5

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