Casual Taxable Person in GST: Everything You Should Know

The provisions made under GST define a Casual Taxable Person in GST by means of any individual who transacts goods besides services occasionally while acting by means of a Principal, Agent, or in any other size for the furtherance of the business but does not possess any fixed dwelling of business in the given taxable territory.

Mr. Abhishek has an art house in Delhi but has strategies for exhibiting the art pieces at an exhibition/event in Mumbai. Under such situations, Mr. Abhishek will be considered a casual chargeable person and will be required to apply for registration as a casual taxable person within 5 days preceding the event.

How is a Casual Taxable Person different from a Regular Taxpayer?

Generally, a steady taxpayer is required to file his returns on a regular basis, maintain accounts as per the GST Act, have an immovable place of business in the given taxable territory, etc. On the other hand, a casual taxpayer does not have a fixed place of business besides the occasional supply of goods and/or services in the agreed taxable territory due to the nature of the business.

To accommodate the unique necessities of such taxpayers, special provisions have been made below the GST Act for the registration of casual assessable persons.

‍Suggested Read: GST Registration Process

Registration of Casual Taxable Person in GST

Similar to any individual complicated in the supply of goods and/or services, a casual taxable person must create a taxable supply to get GST registration. Under GST for the unplanned taxable person, there is no threshold limit for taking registration, yet the casual taxable person cannot exercise the option to pay tax under the configuration scheme.

‍Points to be noted:

There is no special form for the registration; the chance taxable person can use the usual form GST REG-01. The registration should be accomplished under the special category at least 5 days prior to the responsibility business.

Before applying for recording, he should declare his:

Permanent Account Number (PAN)

Mobile Number

E-mail address

State or Union Territory

P.S: Notification No. 32/2017-CT dated 15th September 2017 excuses casual taxable persons who make taxable goods of handicraft goods under Sec 23(2) of the Act from gaining registration subject to certain conditions.

Advance Payment of tax by Casual Taxable Person

A Casual Taxpayer is required to make a fee deposit of tax for an amount equivalent to the assessed tax liability of such person for the old-fashioned for which the registration is sought.

On depositing the amount, an acknowledgment shall be supplied electronically to the interviewee in FORM GST REG-02, and the amount deposited shall be attributed to the person's electronic ledger. The casual chargeable person can make taxable supplies only after the issuance of the credential of registration.

For example, if Mr. Abhishek is expecting a sale of RS 1,00,000, and the tax rate applicable is 12%. Then, he needs to deposit a fee tax of Rs. 12000.

Returns to Be filed

Similar to a regular taxpayer, an unplanned taxpayer is required to file the monthly/quarterly reoccurrence forms – GSTR 1 and GSTR 3B.

Validity of Registration Certificate

The certification of registration as a casual assessable person is valid for the period as quantified by the taxpayer or 90 days from the actual day of registration (whichever is earlier). The taxpayer can seek leeway on the given certificate by making a tax fee deposit in an amount equivalent to the projected tax liability (applicable for the extended period). The proper captain may extend the registration for a period not prodigious 90 days.

Refund of Advance Deposited

The casual taxable person is qualified for the refund of any balance of the advance tax put by him after adjusting his tax liability. The early payment tax deposit for the balance can be refunded only after all the returns are filed. In addition, the casual taxable individual can also avail of ITC for goods, services, or both.

Conclusion

As a CTP, securing temporary GST registration is indispensable before initiating any business activities in the chosen state or union territory. To fulfill your anticipated tax obligations, it is necessary to make an advance tax deposit based on your projected tax liability for the registration period. It is crucial to note that the GST composition scheme, which simplifies tax compliance, is not available for CTPs. By grabbing these foundational aspects, you can ensure a seamless and compliant business venture as a Casual Taxable Person under GST. This guide offers a concise overview of the essential necessities and responsibilities linked to CTP registration.

Suggested Read: Everything You Need to Know About Rounding Off Tax Under GST

FAQS

What is the threshold limit for a casual taxable person?

There is no threshold limit for recordkeeping. A casual taxable person cannot have the option to pay tax under a composition levy. He has to apply for recording at least five days prior to commencing his business in India.

Who is a casual taxable person on an e invoice?

An Unplanned Taxable Person may register on his own or can be registered by the registration authority pursuant to any survey, inquiry, inspection, search, or any extra proceedings where he fails to apply for registration. His registration is valid for 90 days and, on sufficient cause, can only be protracted a further 90 days.

What is the time limit for casual taxpayers?

A casual chargeable person must register at least 5 days before initialing their business. A CTP has to obtain a temporary registration, which is valid for a maximum period of 90 days in the state from where he seeks to supply as an unplanned taxable person.

Can a casual taxable person claim ITC?

A casual taxable person has to make a fee deposit of tax of an amount corresponding to his estimated tax liability for the period for which the recording is sought. Such advance tax should be paid to the extent of the net tax liability, i.e., after considering the due eligible ITC.

What are the types of casual income?

Casual income means income in the wildlife of winning from lotteries, crossword puzzles, races including horse races, card games besides other games of any sort, betting, betting, etc. Such winnings are serious to tax at a flat rate of 30% under segment 115BB.