For Casual Taxable Persons it hard to maintain a fixed place of business or file monthly GST returns continuously, because their business would be seasonal in nature with no fixed place of business. Special provisions have been provided under the GST Act for registration of casual taxable persons.
Registration Requirement for Casual Taxpayers
GST Registration is state wise and hence there may be a situation where a person who is registered under one state may also require registering under another state but only for few days.
Further, he also does not have any other fixed place of business from where he can take registration.
Therefore, the concept of casual taxable person shall help that entire person who does not have any fixed place of business but they are liable to register under GST from that state.
A casual taxable person making a taxable supply in India has to compulsorily take registration. There is no threshold limit for registration. A casual taxable person cannot pay tax under composition levy. He has to apply for registration at least 5 days prior to commencing his business in India.
Advance Tax Deposit Provisions for Casual taxpayers
Unlike regular taxpayers, casual taxable persons are required to deposit tax in advance for GST registration. The amount of tax to be deposited would be equal to the expected tax liability during the validity period of GST registration. Hence on applying for GST registration, a temporary reference number is generated for payment of GST deposit. On paying the GST deposit, the electronic cash ledger of the taxpayer is credited and GST registration certificate is released.
Registration Procedure for Casual Taxpayers
For Registration as Casual Taxpayers following procedure needs to be followed by Person
- For Registration Form GST REG-01 (PART A) use by normal taxpayer will be used by Casual Taxpayer.
- A person who wants to take registration will declare his PAN (permanent account number), Mobile number, Email-address, State in the form above mentioned.
- After declaring the PAN the validity of the card will be checked by Central Board of Direct Taxes; Mobile numbers and E-mail address shall be verified through a one-time password. On successful verification of PAN, Mobile numbers, E-mail address a temporary number shall be generated to communicate with the respective applicant.
- After the generation of the reference number, the applicant shall electronically submit an application in the PART-B of the same form along with the documents specified in the said form at the common portal.
- A temporary reference number will be given to the applicant by the Common Portal for making the mandatory advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.
- After the deposit, a registration certificate shall be issued electronically. The deposited amount shall be credited to the electronic cash ledger of that casual taxable person.
- On depositing the amount, an acknowledgment shall be issued electronically to the applicant in Form GST REG-02.
- If the casual taxable person intends to extend the period of registration then an application in Form GST REG-11 shall be submitted electronically through the common portal before the end of the validity of registration granted to him.
Validity Period of GST Certificate of Registration for a casual taxable person
The validity period of GST certificate of registration for casual taxable person shall be valid for a period of ninety days from the effective date of registration. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days.
Returns needs to be filed by Casual Taxable Person
- FORM GSTR-1 gives the details of outward supplies of goods or services to be filed on or before the 10th day of the following month.
- FORM GSTR-2 gives the details of inward supplies to be filed after 10th but before the 15th day of the following month.
- FORM GSTR-3 to be filed after the 15th day but before the 20th day of the following month.
Casual Taxable Person are not required to file any Annual return as required by Normal Regular Taxpayer.
Refund for Casual Taxable Person
Only after adjusting his tax liabilities, a taxpayer becomes eligible to get the refund of any balance of the deposited advance tax by him. A tax can be refunded only after all the returns have been furnished. The refund and balance related things are mentioned in serial no. 14 of the last FORM GSTR-3 return required to be furnished by him (instead of FORM GST RFD 01).