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Casual Taxable Person under GST

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A casual taxable person is a person who undertakes transactions to supply goods or services occasionally in a taxable territory where he does not have a fixed place of business. As per S. 2(20) of the CGST Act, 2017, it is defined 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.”

So, a Casual taxable person can act in the capacity of Principal or Agent or in any other capacity for the supply of goods or services in furtherance of business. For example, A has its registered place of business in Delhi providing consultancy services & he is giving those services in Mumbai. He is liable to take registration in Mumbai as a casual taxable person before providing services in Mumbai.

Registration: 

Under GST, the liability to take registration arises on account of crossing the prescribed threshold limit & compulsory registration for the prescribed categories in the Act itself. The threshold limit for taking registration is prescribed as Rs. 40 L for supply of goods & Rs. 20 L for the supply of services. There are various categories specified in the Act which are required to take registration irrespective of the threshold limit. One such category is Casual Taxable person. The registration is mandatory for them.

Moreover, they cannot opt for composition scheme. He is required to apply for registration at least 5 days prior to commencing his business in India. He has to make an advance deposit of tax in an amount equivalent to his estimated tax liability for the period for which the registration is sought. Only after making advance deposit, registration certificate will be issued.

He can supply only after the issuance of registration certificate. The validity period of registration certificate is specified period in application by the person himself or 90 days from the effective date of registration, whichever is earlier. 

There is no special form for registering as a casual taxable person. The general form GST REG-01 can be used for taking registration as a casual taxable person. 

Registration Process:

1. Apply in Form GST REG-01, by declaring PAN, Mobile Number & email in PART A of the form & validate them through OTP.

2. A temporary reference Number will be issued for payment of advance deposit.

3. Fill PART B of the form using the temporary reference Number.

4. After deposit, registration certificate will be issued.

5. After receiving certificate, a casual taxable person can make supplies.

Now, the period of validity of registration can be extended by applying in form GST REG-11 before the expiry of validity period. The validity can be extended for not more than 90 days after paying additional tax for the extended period.

Returns:

The casual taxable person is required to furnish the following returns:

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. 

However, a casual tax person is not required to file any annual return as required by a normal registered taxpayer. 

Refund Provisions:

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 pre-requisite for claiming balance of advance tax is furnishing of returns for the certified period. 

The application for refund relating to balance of advance tax has to be made in serial no. 14 of the last FORM GSTR-3 return (instead of FORM GST RFD 01).