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Casual Taxable Person and their registration process under the GST law

Casual Taxable Person

Definition under the GST Law:
“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.
Example:-
Mr. X having the place of business in Bangalore providing Consultancy services in Hyderabad where he has no place of business. Thus, Mr. X has to register as a Casual Taxable Person in Hyderabad before providing such services.

Registration:
A casual taxable person making taxable supply in India:-
a.   Of specified handicraft goods need to register only if their aggregate turnover crosses Rs. 20 Lakh (or Rs. 10 lakh for in case of Special Category States).
b.    Other than those specified in (a) has to compulsorily take registration.
c.    Cannot exercise the option to pay tax under composition levy.
d.   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 a Casual taxable person.
e.  Also required to make the advance deposit of GST (based on an estimation of tax liability) for the period for which the registration is sought.

Registration Process:
The casual taxable person can make taxable supplies only after the issuance of the certificate of registration which shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.
The normal FORM GST REG-01 which is used by other taxable persons can be used for obtaining registration by casual taxable person also.


Further extension of registration period:
In case the casual taxable person intends to extend the period of registration indicated in his application of registration, an application in FORM GST REG-11 shall be submitted electronically before the end of validity of existing registration period.
The validity period of ninety days can be extended by further period not exceeding ninety days.
But such extension will be allowed only on deposit of additional advance tax liability for further extended period.

Disclaimer: 

The contents of this article are solely for informational purpose. It does not constitute any professional advice. The author does not represent that the contents of the article are accurate or complete. Neither the Site/Blog 'Your Instasolv' and the author accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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Comments

  1. Anant1358 July 2022 at 17:56

    Thanks for sharing. Gst Registration is need of every businesses. Filing way is one stop solution for your Online Gst Registration. There are many benefits of Gst registration like bank loan, Suplier Onboarding, Input tax credit. Goods and Services Tax (GST) registration is mandatory for every business owner whose turnover is more than 20 lakhs. If you need Online Gst Registration call 7667070887 or visit us Online Gst Registration

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