Casual taxable person
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 Tariffitem |
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 |
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| 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].
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
