Who is a Casual Taxable Person under GST
Introduction-
Casual Taxable Persons have been provided special treatment under GST. The GST Act defines as casual taxable person as 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.
Hence, persons running temporary businesses in fairs or exhibitions or seasonal businesses would fall under casual taxable persons under GST.
Registration requirement for casual taxable person-
- A casual taxable person making a taxable supply in India has to compulsorily take registration.
- There is no threshold limit for registration.
- The casual taxable person has to apply for registration at least 5 days prior to commencing his business in India.
- A casual taxable person cannot pay tax under composition.
- The casual taxable person has to make an advance payment of the amount of tax which is equivalent to his estimated tax liability for the said registration period.
Registration as casual taxpayer-
The liability to register under GST arises when the person is a supplier and the aggregate turnover in the financial year is above the threshold limit of Rs. 20 lakh for all states or 10 lakh for NE and hill states has increased to Rs. 40 lakh or Rs. 20 lakh in 32nd GST Council meeting at New Delhi on 10th January 2019.. However, there are certain categories of suppliers who are required to get compulsory registration irrespective of their turnover. The threshold limit is not applicable to them. One such supplier would be a Casual Taxable Person (hereafter referred as CTP). A casual taxable person cannot opt for Composition Scheme.
The Registration process is as follows-
- No special form is required for his registration, i.e. Form GST REG-01 is to be submitted.
- The casual taxpayers need to declare his PAN, Mobile number, Email-address and State in the said form.
- Thereafter, the CBDT will check the validity of the PAN card.
- The said mobile number and E-mail address shall be verified through OTP (one-time password).
- After successful verification of PAN, Mobile number and E-mail address, a temporary number shall be generated to communicate with the respective applicant.
- After the generation of the reference number, the applicant shall electronically apply in the PART-B of the Form GST REG-01, along with the specified documents.
- Then, the applicant will get a temporary reference number for making the advance payment of tax equivalent to the estimated tax liability.
- Then, the amount of tax deposited by casual taxpayer credited into the electronic cash ledger under GST portal.
- Thereafter, the applicant will receive an electronic acknowledgment in Form GST REG-02.
- They will issue a certificate of registration. It is valid for 90 days from the date of registration.
- If the casual taxpayer intends to extend the period of registration, then he will file an application in Form GST REG-11.
- A casual tax payer is not required to file an annual return.
Return in which form to be submitted by casual taxpayer-
- FORM GSTR-1 (Details of outward supplies)- filing of return on or before the 10th day of the following amount.
- FORM GSTR-2 (Details of inward supplies)- filing of return after 10th but before the 15th day of the following month.
- FORM GSTR-3 (GST liability)- filing of return after the 15th day but before the 20th day of the following month.
Refunds to a casual taxable person-
A casual taxable person is eligible for refunds of the advance tax paid by him at the beginning after adjusting his tax liability. This amount can be refunded only when all the required returns are furnished, for the period for the registration is in force, on time. The refund relating to balance in the electronic ledger to be made in serial no. 14 of Form GSTR-3.