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A casual taxable person registration procedure involves filling out FORM GST REG-01 explained below. Before we move on to the procedure lets, first understand some basic terms.
Before we move on to the example of the casual taxable person, what is a definition of a “person” in GST,
A person includes
Mr. A has a business in Gurgaon and is registered in Haryana. Mr. A went to Delhi for an exhibition and sold goods there. This is an occasional transaction, not an ordinary transaction. Mr. A also does not have a fixed place of business in Delhi. So, Mr. A is a casual taxable person and will be required to obtain a temporary registration for Delhi.
A casual taxable person compulsorily needs to take registration in GST without any threshold limit. The limit of Rs. 20 lacs and Rs. 10 lacs for special category states does not apply to the casual taxable person.
A casual taxable person cannot pay tax under the composition scheme.
A casual taxable person needs to take registration at least five days before commencing his business.
A casual taxable person 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.
For example, Mr. A undertakes a taxable supply of Rs. 1,00,000 then he needs to deposit 18% of 1,00,000 that is Rs. 18,000. (Tax rate assumed to be 18%)
A casual taxable person is registered just like a normal taxable person using the Form GST REG-01.
After paying the liability certificate of registration will be granted by the proper officer. The certificate of registration will be valid for ninety days or the time period specified in Part B whichever is earlier. The casual taxable person can only undertake supplies of goods after granting of a certificate of registration.
The extension for a certificate of registration for a casual taxable person can be done for a maximum of ninety days. The application shall be made in GST REG-11. The application should be made before the expiry of the first ninety days granted.
Also, additional tax liability arising out of further taxable supplies in the next ninety days should be deposited.
The form GST REG-11 can be submitted electronically on the common portal or either directly or through a Facilitation Centre notified by the Commissioner.
The casual taxable person needs to fill the following returns electronically through the GST portal.
However, currently, only GSTR-1 and GSTR 3B needs to be filled. Similarly, GST annual return (GSTR-9) is not required to be filled for a casual taxable person.
In case if there is an excess amount available after adjusting the advance tax with liability. The excess can be taken as a refund. The returns need to be furnished for the time period certificate of registration was valid. The refund of the amount in the cash ledger has to be made in Serial No. 14 of Form GSTR-3.
A CTP needs to pay the amount of tax liability arising on the occasional supply of goods and services in a concerned state in advance. The payment is made through a GST challan while filling GST REG-01.
In this scenario, the taxpayer needs to take normal registration for that particular state.
The casual taxable person can apply for multiple registrations within one state.
A casual taxable person can avail Input tax credit of goods and services in Form GSTR-3B.
No, the amount of tax liability arising out of taxable supply needs to be deposited. No need to pay any fixed amount.
Akash Arora is a Chartered Accountant. His domain areas include Indirect Tax (GST), Direct tax, Internal Auditing as well as Statutory Auditing. He is a business advisor to FMCG, Construction, and Automobile Entities all over India. Feel Free To Contact Him. 🙂