Provisions related to Casual Taxable Person in GST

Article explains Who is casual taxable person, Registration of Casual Taxable Person in GST, Application for registration by Casual Taxable Person in GST, Advance Payment of tax by Casual Taxable Person Validity of registration of Casual Taxable Person, Refund by Casual Taxable Person, Input tax credit to Casual Taxable Person and Clarifications of issues under GST related to casual taxable person.

Who is casual taxable person?

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 a principal, agent or in any other capacity,

♠ in a State or a Union Territory where he has no fixed place of business.

Registration of Casual Taxable Person in GST

A casual taxable person making taxable supply in India has to compulsorily take registration. There is no threshold limit for taking registration. A casual taxable person cannot exercise the option to pay tax under composition levy.

Application for registration by Casual Taxable Person in GST

1. Take registration under special category at least 5 days prior to the undertaking business.

2 .No special form to register as a casual taxable person.

3. Use the normal form GST REG-01 which is used by other taxable persons for registration.

4. Before applying for registration, he should declare his:

• Permanent Account Number
• Mobile Number
• E-mail address
• State or Union Territory

Notification No. 32/2017-CT dated 15^th September, 2017 has exempted casual taxable persons making taxable supplies of handicraft goods under Sec 23(2) of the Act from obtaining registration, subject to certain conditions.

EXAMPLE:

Mr. A runs a retail shop for purse and is registered in Chennai. Mr. A is planning to sell the purses at an exhibition in Mumbai, to be held from 1^st January 2018 to 10^TH January 2018. Advise time with regard to registration and payment of GST.

Mr. A should apply for registration as a casual taxable person within 5 days prior to 1^st January 2018. Mr. A should also make an advance deposit of the estimated tax liability for the period from the period from 1^st January 2018 to 10^th January 2018.

Advance Payment of tax by Casual Taxable Person

Casual Taxable Person is mandatorily required to make an 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 amount deposited shall be credited to the electronic able person. On depositing the amount, an acknowledgement shall be 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.

Validity of registration

The certificate of registration is valid

• For the period specified in the application of registratio

Or

• 90 days from the effective date of registration

Whichever is earlier.

The proper officer may extend registration for a period not exceeding 90 days. The casual taxable person shall make an advance deposit of tax in an amount equivalent to estimated tax liability of such person for the period for which extension of registration is sought.

Returns under GST

1. 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.

2. Form GSTR-2 giving the details of inward supplies to be filed after tenth but before the fifteenth day of the following month.

3. FORM GSTR-3 to be filed after fifteenth day but before the twentieth day of the following month.

4. Casual Taxable Person is not required to file Annual Return.

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 are filed.

Input tax credit

Casual taxable person can avail ITC in respect of goods or services or both.

Clarifications of issues under GST related to casual taxable person

Circular No. 71/45/2018-GST

S. No	Issue	Clarification
1.	Whether the amount required to be deposited as advance tax while taking registration as a casual taxable person (CTP) should be 100% of the estimated gross tax liability or the estimated tax liability payable in cash should be calculated after deducting the due eligible ITC which might be available to CTP?	1. It has been noted that while applying for registration as a casual taxable person, the FORM GST REG-1 (S. No. 11) seeks information regarding the “estimated net tax liability” only and not the gross tax liability. 2. It is accordingly clarified that the amount of advance tax which a casual taxable person is required to deposit while obtaining registration should be calculated after considering the due eligible ITC which might be available to such taxable person.
2.	As per section 27 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the said Act), period of operation by causal taxable person is ninety days with provision for extension of same by the proper officer for a further period not exceeding ninety days. Various representations have been received for further extension of the said period beyond the period of 180 days, as mandated in law.	1. It is clarified that in case of long running exhibitions (for a period more than 180 days), the taxable person cannot be treated as a CTP and thus such person would be required to obtain registration as a normal taxable person. 2. While applying for normal registration the said person should upload a copy of the allotment letter granting him permission to use the premises for the exhibition and the allotment letter/consent letter shall be treated as the proper document as a proof for his place of business. 3. In such cases he would not be required to pay advance tax for the purpose of registration. 4. He can surrender such registration once the exhibition is over.