Casual Taxable Person

Casual Taxable Person

Casual Taxable Person means a person* who is occasionally or is temporarily involved in the conducting of business or transactions such as the supply of taxable goods or services or both, whether as principal or agent or in any other capacity in a taxable territory where he has no fixed place of Business.

*Person under the GST act includes an individual, a HUF, a Company, a firm, an LLP, an AOP or BOI whether incorporated in India or outside India, any Corporation established under state, Central or Provincial Act or a Government Company, a body Corporate incorporated by or under the laws of a country outside India, a co-operative society, a local authority, Central Government or State Government, registered Society, trust and every artificial judicial person, not falling within any of the above.

EXAMPLE: Ms. Kayal, an Individual runs a Boutique in Chennai and is registered under GST in Chennai. She has got a project in Bangalore to run a boutique for an association for a month. This is not a permanent project in Bangalore and will run only for a month while she does not have a fixed place of business in Bangalore. In this case, she has to register herself as a Casual Taxable Person irrespective of the threshold limits.

A Casual Taxable Person has to compulsorily get registered under GST irrespective of the threshold limit, at least 5 days prior to commencement of Business. The Registration shall be made in the FORM GST REG-01 which is the normal form used by other taxable persons as well.

Advance Deposit of Tax: Every Person at the time of applying for registration under GST as a Casual Taxable Person is required to make an advance deposit of tax of an amount equivalent to the estimated tax liability for the period for which the registration is sought.

REGISTRATION

Period of Validity shall be:

  • the period specified in the registration application, or
  • 90 days from the effective date of registration, whichever is earlier

An extension for a further period not exceeding 90 days can be obtained by making an application before the end of the validity of registration granted. An advance deposit for the additional tax during the extended period should be made while applying for the extension.

SPECIAL POINTS FOR CTP

  1. A Casual Taxable Person is required to file GST returns such as GSTR1 and GSTR3B, however, is not required to file an Annual return under the GST Act.
  2. A Casual Taxable Person cannot exercise the option to pay under Composition Scheme.
  3. Refund by Casual Taxable Person: The Casual Taxable Person can claim a refund of any balance amount of advance deposited after adjusting for tax liability. Any such Balance advance tax can be refunded only after furnishing all returns for the period of registration. The Claim for refund should be made through the last FORM GSTR-3.

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