Casual taxable person in GST – All You want to know

The Goods and Services Tax (GST) law has brought about significant changes in the way businesses are taxed in India. One of the changes introduced by the GST is the concept of casual taxable persons. A casual taxable person is someone who occasionally undertakes transactions involving the supply of goods or services and is not registered under the GST Act. In this article, we will discuss everything you need to know about casual taxable persons in GST.

Who is a casual taxable person?

A casual taxable person is someone who occasionally supplies goods or services in a territory where the GST is applicable and does not have a fixed place of business in that state or union territory. Such a person is not required to register under the GST Act, but may do so voluntarily.

When is a person considered a casual taxable person?

A person is considered a casual taxable person when they:

Occasionally supply goods or services in a territory where the GST is applicable
Do not have a fixed place of business in that state or union territory
Aren't registered under the GST Act
Are not an agent or principal of another person who is registered under the GST Act

Registration for casual taxable persons

A casual taxable person can apply for registration under the GST Act using Form GST REG-01. The application must be submitted at least five days before the commencement of business. The person must also deposit an amount equivalent to the estimated tax liability for the period of registration. The registration certificate issued to a casual taxable person is valid for 90 days and can be extended for a further period of 90 days if required.

Taxes applicable to casual taxable persons

Casual taxable persons are required to pay taxes on the goods or services supplied by them in the territory where the GST is applicable. The tax rate applicable to them is the same as that applicable to a regular taxable person. They are required to file monthly returns using Form GSTR-1 and Form GSTR-3B.

Benefits of registration as a casual taxable person

Registration as a casual taxable person brings several benefits, including:

Ability to undertake occasional transactions in a territory where the GST is applicable without having a fixed place of business
Avoidance of penalties for non-registration and non-payment of taxes
Ability to claim input tax credit on goods and services used for business purposes

Conclusion

The GST has introduced several changes in the way businesses are taxed in India. The concept of casual taxable persons is one of the changes introduced by the GST. Casual taxable persons are those who occasionally supply goods or services in a territory where the GST is applicable and do not have a fixed place of business in that state or union territory. They are required to register under the GST Act and pay taxes on the goods or services supplied by them. Registration as a casual taxable person brings several benefits, including the ability to undertake occasional transactions without having a fixed place of business and the ability to claim input tax credit.