Casual taxable person
(Updated as on November 2022)

Introduction:

“Casual taxable person” means 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.

A casual taxable person (other than those making supply of specified handicraft goods) making taxable supply in India has to compulsorily take registration. There is no threshold limit for registration. Casual Taxable persons making supply of specified handicraft goods need to register 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 at least five days prior to commencing his business in India. The specified handicraft goods are as under:

TABLE A: Specified handicraft goods as per Notification No. 21/2018-Central Tax (Rate) dated 26.07.2018 as amended, read with Notification No. 56/2018-Central Tax dated 23.10.2018
S. No. Chapter,
Heading,
Subheading
or Tariff
item
Description of Goods
1. 3406 Handcrafted candles
2. 4202 22,
4202 29,
4202 31 10,
4202 31 90,
4202 32,
4202 39
Handbags including pouches and purses; jewellery box
3. 4416,
4421 99 90
Carved wood products, art ware/decorative articles of wood (including inlay work, casks, barrel, vats)
4. 4414 Wooden frames for painting, photographs, mirrors etc.
5. 4420 Statuettes & other ornaments of wood, wood marquetry & inlaid, jewellery box, wood lathe and lacquer work [including lathe and lacquer work, ambadi sisal craft]
6. 4503 90 90
4504 90
Art ware of cork [including articles of sholapith]
7. 4601 and 4602 Mats, matting and screens of vegetable material, basketwork, wickerwork and other articles of vegetable materials or other plaiting material, articles of loofah (including of bamboo, rattan, canes and other natural fibres, dry flowers (naturally dried), articles thereof, ringal, raambaan article, shola items, Kouna/ chumthang (water reeds) crafts, articles of Water hyacinth, korai mat]
8. 4823 Articles made of paper mache
9. 5607, 5609 Coir articles
10. 5609 00 20,
5609 00 90
Toran, Doorway Decoration made from cotton yarn or woollen yarn and aabhala (mirror) with or without hanging flaps
11. 57 Handmade carpets and other handmade textile floor coverings (including namda/gabba)
12. 5804 30 00 Handmade lace
13. 5805 Hand-woven tapestries
14. 5808 10 Hand-made braids and ornamental trimming in the piece
15. 5810 Hand embroidered articles
16. 6117, 6214 Handmade/hand embroidered shawls of sale value not exceeding Rs. 1000 per piece
17. 6117, 6214 Handmade/hand embroidered shawls of sale value exceeding Rs. 1000 per piece
18. 6802 Carved stone products (e.g., statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
19. 6815 99 90 Stone art ware, stone inlay work
20. 6912 00 10
6912 00 20
Tableware and kitchenware of clay and terracotta, other clay articles
21. 6913 90 00 Statuettes & other ornamental ceramic articles (including blue potteries)
22. 7009 92 00 Ornamental framed mirrors
23. 7018 10 Bangles, beads and small ware
24. 7018 90 10 Glass statues [other than those of crystal]
25. 7020 00 90 Glass art ware [ including pots, jars, votive, cask, cake cover, tulip bottle, vase ]
26. 7113 11 10 Silver filigree work
27. 7117 Handmade imitation jewellery (including natural seeds, beads jewelry, cardamom garland)
28. 7326 90 99 Art ware of iron
29. 7419 80 Art ware of brass, copper/ copper alloys, electroplated with nickel/silver
30. 7616 99 90 Aluminium art ware
31. 8306 Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchloga artware, idol, Swamimalai bronze icons, dhokra jaali)
32. 9405 10 Handcrafted lamps (including panchloga lamp)
33. 940150,
9403 80
Furniture of bamboo, rattan and cane
34. 9503 Dolls or other toys made of wood or metal or textile material [incl wooden toys of sawantwadi, Channapatna toys, Thanjavur doll]
35. 9504 Ganjifa card
36 9601 Worked articles of ivory, bone, tortoise shell, horn, antlers, coral, mother of pearl, seashell other animal carving material
37 9602 Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc., (including articles of lac, shellac)
38 9701 Hand paintings drawings and pastels (including Mysore painting, Rajasthan painting, Tanjore painting, Palm leaf painting, basoli etc.)
39 9703 Original sculptures and statuary, in metal, stone or any other material

TABLE B: Specified products as per Notification No. 56/2018-Central Tax dated 23.10.2018
Sl No. HSN Code Products
1. 4201, 4202, 4203 Leather articles (including bags, purses, saddlery, harness, garments)
2. 4415, 4416 Carved wood products (including boxes, inlay work, cases, casks)
3. 4419 Carved wood products (including table and kitchenware)
4. 4420 Carved wood products
5. 4421 Wood turning and lacquer ware
6. 46 Bamboo products [decorative and utility items]
7. 4601, 4602 Grass, leaf and reed and fibre products, mats, pouches, wallets
8. 4823 Paper mache articles
9. including 50, 58, 62, 63 Textile (handloom products)
10. 50, 52, 54 Textiles hand printing
11. 5605 Zari thread
12. 57 Carpet, rugs and durries
13. 58 Textiles hand embroidery
14. 61, 62, 63 Theatre costumes
15. 5705, 9404 Coir products (including mats, mattresses)
16. 6403, 6405 Leather footwear
17. 6802 Carved stone products (including statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
18. 68 Stones inlay work
19. 6901,6909,
6911, 6912,
6913, 6914
Pottery and clay products, including terracotta
20. 7418 Metal table and kitchen ware (copper, brass ware)
21. 8306 Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals of Chapters 73 and 74
22. 8306 Metal bidriware
23. 92 Musical instruments
24. 96 Horn and bone products
25. 96 Conch shell crafts
26. 94 Bamboo furniture, cane/Rattan furniture
27. 9503 Dolls and toys
28. 97 Folk paintings, madhubani, patchitra, Rajasthani miniature

A casual taxable person has to make an advance deposit of tax of an amount equivalent to his estimated tax liability for the period for which the registration is sought. Such advance tax should be paid to the extent of the net tax liability i.e. after considering the due eligible ITC. [Ministry of Finance Circular No. 71/45/2018-GST dated 26.10.2018].

Casual taxable person in GST - All You want to know

Registration:

A casual taxable person has to apply for registration at least five days prior to the commencement of business. There is no special form to register as a casual taxable person. The normal FORM GST REG-01 which is used by other taxable persons can be used for obtaining registration by casual taxable person also. A casual taxable person, before applying for registration, declare his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

The Permanent Account Number is validated online by the common portal from the database maintained by the Central Board of Direct Taxes. The mobile number declared is verified through a one-time password sent to the said mobile number; and the e-mail address is verified through a separate one-time password sent to the said e-mail address. On successful verification of the Permanent Account Number, mobile number and e-mail address, a temporary reference number is generated and communicated to the applicant on the said mobile number and e-mail address.

Using this reference number generated, the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly signed or verified through electronic verification code, along with the documents specified in the said Form at the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

The applicant will be given a temporary reference number by the Common Portal for making the mandatory advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. The registration certificate is issued electronically only after the said deposit appears in his electronic cash ledger. The amount deposited is credited to the electronic cash ledger of casual taxable person. On depositing the amount, an acknowledgement is issued electronically to the applicant in FORM GST REG-02.

The casual taxable person can make taxable supplies only after the issuance of the certificate of registration. The certificate of registration is valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.

In case the casual taxable person intends to extend the period of registration indicated in his application of registration, an application in FORM GST REG-11 shall be submitted electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, before the end of the validity of registration granted to him. The validity period of ninety days can be extended by a further period not exceeding ninety days. The extension will be allowed only on payment of the amount of an additional amount of tax equivalent to the estimated tax liability for the period for which the extension is sought has been deposited.

Long running exhibitions:

In case of long running exhibitions (i.e. beyond 180 days), the taxable person must obtain normal registration and should not obtain registration as a casual taxable person. Copy of the allotment letter granting him permission to use the premises for exhibition is considered as proof of Place of Business. Once the exhibition is over, the registration can be surrendered. [Ministry of Finance Circular No. 71/45/2018-GST dated 26.10.2018].

Returns:

The casual taxable person is required to furnish the following returns electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:

(a) FORM GSTR-1 giving the details of outward supplies of goods or services .

(b) FORM GSTR-3B giving the summary of supplies along with payment of tax.

However, a casual taxable person shall not be required to file any annual return as required by a normal registered taxpayer.

Refund by 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.

Check GST Common portal for More Information

Our Recommendation on GST

Sr No.  Particulars
1 Registration under GST Law
2 Cancellation of Registration in GST
3 The Meaning and Scope of Supply
4 Composite Supply and Mixed Supply
5 Time of Supply in GST
6 GST on advances received for future supplies
7 Concept of Aggregate Turnover in GST
8 Non-resident taxable person in GST
9 Casual taxable person in GST
10 Input Service Distributor in GST
11 Composition Levy Scheme in GST
12 Reverse Charge Mechanism in GST
13 Tax Invoice and other such instruments in GST
14 Accounts and Records in GST
15 Credit Note in GST
16 Debit Note in GST
17 Electronic Cash/Credit Ledgers and Liability Register in GST
18 Electronic Way Bill in GST
19 Input Tax Credit Mechanism in GST
20 Transition Provisions under GST
21 Integrated Goods and Services Tax Act
22 Compensation cess in GST
23 Imports in GST Regime
24 Zero Rating of Supplies in GST
25 Deemed Exports in GST
26 Pure Agent Concept in GST
27 Job Work under GST
28 Works Contract in GST
29 Valuation in GST
30 Margin Scheme in GST
31 Provisional Assessment in GST
32 Returns in GST
33 Statement of Outward Supplies (GSTR-1) in GST
34 Refunds under GST
35 Refund of Integrated Tax paid on account of zero rated supplies
36 Refund of unutilised Input Tax Credit (ITC)
37 Advance Ruling Mechanism in GST
38 Goods Transport Agency in GST
39 GST on Charitable and Religious Trusts
40 GST on Education Services
41 GST on Co-operative Housing Societies
42 Online Information Data Base Access and Retrieval (OIDAR) Services in GST
43 GST Practitioners
44 National Anti-Profiteering Authority in GST
45 Benefits of Goods and Services Tax (GST)
46 Special Audit in GST
47 TDS Mechanism under GST
48 TCS Mechanism under GST
49 Inspection, Search, Seizure and Arrest
50 Appeals and Review Mechanism under GST
51 Recovery of Tax
(Republished with Amendment as on 16.11.2022 – Source- CBEC)

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