A person is casual taxable person in a particular State if he occasionally undertakes supply from there when he does not have a fixed place of business.
Who is a Casual Taxable person in GST?
• Transactions are undertaken occasionally in a State
• No fixed place of business in that State or UT
• Transactions involving the supply of goods and/or services undertaken
• Transactions are undertaken in the course or furtherance of business
• Whether as a principal, agent or in any other capacity
Example: Raja Ltd are manufacturers of textile products registered under GST in Rajasthan. They do not have any place of business in Mumbai but they want to participate in textile exhibition in Mumbai where its products will be displayed and sold. They have to obtain Casual taxable person registration in Maharashtra.
However, if it was only for display, then registration won’t be required because there will be no supply. Transfer can be made using delivery challan and e-way bill.
Another example: An event management service provider sets up a temporary booth in a mall in Mumbai to grab the opportunities available in Mumbai on New year and receives orders for managing New year events, he is liable to obtain registration as a casual taxable person for supplying event management services. (Location of supplier and place of supply is Mumbai)
Another example can be works contract – a person may be registered in one State but required to execute a supply in another State where he does not have a fixed place of business.
Registration as Casual Taxable Person
There is a compulsory requirement to obtain GST registration in that State. No basic exemption of 20 lakhs or 40 lakhs is available.
Exemptions have been given to trader of handicraft goods, Carved wood products, bamboo products, Textiles hand printing and similar products listed in Notification 56/2018.
A casual taxable person shall apply for registration at least five days before the commencement of business.
The certificate of registration issued to a casual taxable person shall be valid for the period specified in the application for registration maximum 90 days.
A casual taxable person may apply for an extension and the proper officer may extend by a further period not exceeding 90 days. Hence, a casual taxable person registration can be valid for a maximum period of 180 days.
Deposit of Advance Tax
At the time of submission of application for registration, Casual taxable person needs to make an advance deposit of tax i.e estimated net tax liability.
The amount of advance tax should be calculated after considering the eligible ITC available to such taxable person.
If any shortage of tax then same needs to be discharged while filing return GSTR 3B and in case of excess refund can be applied.
Returns to be filed
FORM GSTR-1 – Invoice wise details of outward supplies of goods or services.
FORM GSTR-3B – Consolidated Summary of outward and inward supplies.
Casual Taxable person is not required to file Annual Return (GSTR 9)
Cancellation or Surrender of Registration
On the completion of the validity period, the status of registration gets converted to ‘Inactive’. However, person can, on its own option, surrender its registration at any time.
It is required pay tax on balance closing stock and to furnish a final return on the cancellation of its registration (GSTR 10).
Few small points:
- Casual Taxable person cannot opt for Composition scheme.
- Supplies can be made only after obtaining registration.
- Long running exhibitions (for a period more than 180 days) registration as a normal taxable person