October 5, 2024

Casual Taxable person under GST and Compliances Applicables

Who is Casual Taxable person under GST :

As per Section 2(20) of CGST Act 2017, 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.

Compliances Applicables for Casual Taxable Person in GST

Registration :

  1. A Casual taxable person making taxable supplies in India has to to take compulsory registration and the benefit of threshold would not be applicable for him.
  2. The Only Exemption for compulsory registration of casual taxable persons is person who are engaged in supply of specified handicraft goods. These persons need to register only if there turnover exceeds Rs.20 lacs
  3. A Casual taxable person cannot exercise the option of paying tax under composition levy.
  4. A casual taxable person has to deposit advance tax of an amount equivalent to his estimated tax liability for the period for which the registration is being sought .
  5. A Casual taxable person has to apply for registration at least five days prior to commencing of his business in India & will be eligible to start his business only after issuance of registration certificate.
  6. The Certificate issued would be valid for a period of 90 days (or) date specified in the registration certificate which ever is earlier. In cases where casual taxable person intends to extend registration period after its validity the same shall be indicated using application Form GST REG-11 before the end of the validity of his registration granted to him.
  7. The Validity can be extended for a further period of 90 days & the same shall be allowed on payment of additional amount of estimated tax liability for which extension is sought.

Input Tax Credit :

There are no specific provisions on availing of ITC specific to Casual taxable persons and he would be eligible for all the inputs similar to regular tax payer.

Returns : 

The casual taxable person is required to furnish following returns with their specified due dates.

  1. Form GSTR-1 – before 10th of following month.
  2. Form GSTR-2 – before 15th day of following month. – Suspended Currently
  3. Form GSTR-3 – before 20th day of following month. – Suspended Currently
  4. Form GSTR – 3B – before 20th of the following month

A Casual taxable person is not required to file any annual return as required by a normal registered taxpayer.

Refund :

The casual taxable person will be eligible for the refund of any balance of the advance tax deposited by him after adjusting his final tax liability. 

The balance advance tax deposit can be claimed only after all the returns have been furnished by him in respect of the entire period for which the certificate of registration was granted to him.

Comparison between Non-Resident taxable person & Casual taxable person :

PARTICULARS NRTP(Non-Resident taxable person) CASUAL TAXABLE PERSON
Fixed Place of Business No fixed place of business in India No Fixed place of business in taxable territory
Registration Compulsory Registration using form GST Reg-09 Compulsory Registration under GST Reg-01
Basis of Registration Non PAN based. PAN Based Registration
Validity of Registration Period  specified in the application for registration or ninety days which ever is earlier Period  specified in the application for registration or ninety days which ever is earlier
Threshold Limit Not Available Not Available
Composition Scheme Not Available Not Available
Return Type GSTR-5 Regular Return
ITC Only credits on which goods have been imported, No credits eligible on inward supplies availed in India. All Eligible credits
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FAQ’S –

Can a casual taxable person opt for registration under composition Scheme ?

No, A casual taxable person cannot opt for registration under composition Scheme.

What is the amount of tax I need to deposit before obtaining registration ?

Amount equivalent to the estimated tax liability based on the estimated turnover for the period for which the casual registration is being obtained.

How many times can I extend my registration period ?

As per the act a casual taxable person will be eligible to extend registration once up to a maximum of ninety days, however if he wants to extend it beyond the maximum period he should get himself registered under regular tax payer.

What is the procedure for taking refund of balance tax ?

An application for refund of advance tax deposited has to be made at the time of filing of application for surrender of registration.

Note: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Please consult relevant profession before taking any actions based on the information present in the document.