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. A casual taxable person does not have fixed place of business. The person can act as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
Let’s understand more about casual taxable person with the help of FAQs.
Q.1 What is the registration criteria for a casual taxable person?
Ans: There is no threshold limit for registration. A casual taxable person has to take compulsory registration, that too five days prior to commencing his business in India.
| A casual taxable person has to make an advance deposit of tax in an amount equivalent to his estimated tax liability for the period for which the registration is sought. |
Q.2 Can a casual taxable person opt for composition scheme?
Ans: A casual taxable person cannot exercise the option to pay tax under composition levy.
Q.3 What is the specified form for the registration?
Ans: 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 registration by casual taxable person.
Q.4 What are the pre requisites before applying for registration?
Ans: 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.
Q.5 What is the registration process??
Ans: Steps for registration:
1. Declaration of PAN, mobile no. etc.- 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.
2. Validation of PAN- The Permanent Account Number shall be validated online by the common portal from the database maintained by the Central Board of Direct Taxes.
3. Verification of mobile no., e-mail address via OTP- The mobile number declared shall be verified through a one-time password sent to the said mobile number; and the e-mail address shall be verified through a separate one-time password sent to the said e-mail address.
4. Generation of temporary reference number- On successful verification of the Permanent Account Number, mobile number and e-mail address, a temporary reference number shall be generated and communicated to the applicant on the said mobile number and e-mail address.
5. Submission of application- 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.
6. Advance deposition of tax- 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.
7. Issuance of registration certificate- The registration certificate shall be issued electronically only after the said deposit appears in his electronic cash ledger. The amount deposited shall be credited to the electronic cash ledger of casual taxable person.
8. Issuance of acknowledgement- On depositing the amount, an acknowledgement shall be issued electronically to the applicant in FORM GST REG-02.
9. What is the validity of certificate of registration?
The certificate of registration shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.
Q.6 Can the validity of registration be extended?
Ans: 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. |
Returns to be filled by casual taxable persons
Following are the returns which shall be filled by the casual taxable person:
| Return | Time Period for filing |
| FORM GSTR-1 | giving the details of outward supplies of goods or services to be filed on or before the tenth day of the following month. |
| FORM GSTR-2 | giving the details of inward supplies to be filed after tenth but before the fifteenth day of the following month. |
| FORM GSTR-3 | after fifteenth day but before the twentieth day of the following month.
However, a casual tax person shall not be required to file any annual return as required by a normal registered taxpayer. |
| FORM GSTR-3B | before the twentieth day of the following month. |
However, a casual tax person shall not be required to file any annual return as required by a normal registered taxpayer.
Refund mechanism by casual tax payers
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. Application for Refund of balance in excess of tax liability in the electronic cash ledger has to be made in serial no. 14 of the last FORM GSTR-3 return.
Author Bio
I have one doubt sir, Regarding GST casual tax payer registration
Where is Form GSTR 3 to claim refund.
Greetings!
Very nice article
Kindly suggest me where I get Interest on such excess deposit or I will have to pay interest on balance deposit of tax to govt.