A casual taxable person (CTP) under GST is a person who does not have any fixed place of business but supplies goods or/and services in different taxable territories of India. A Casual Taxable person can act as a principal or agent to expand the scope of business. Let us understand this concept with the help of an example:
Mr. X is an artificial jewelry shop owner and has a place of business in Rajasthan. However, every year he sells this artificial jewelry in Surajkund Mela situated in Haryana where he has no place of business. In this case, Mr. X has to register as a Casual Taxable Person (CTP) before selling the jewelry in Surajkund Mela.
a) A person may include:
ii. Companies (Private or Public)
iii. Hindu Undivided Family (HUF)
iv. Partnership Firm
v. Limited Liability Partnership (LLP)
vi. Any Government company or corporation
vii. Co-operative Societies
viii. Body of Individuals (BOI) or Association of Person (AOP)
ix. Any local authority or trust
b) Here the principal place of business is the place where the business is registered by the taxpayer.
Registration of Casual Taxable Person (CTP)
Every taxpayer whose aggregate annual turnover exceeds the mark of 40 Lakh INR (20 Lakhs INR in case of North-Eastern States) needs to register under GST. Howsoever, there are a certain type of taxpayers under GST who needs to compulsorily register under GST irrespective of the above-mentioned threshold limit. One such type of taxpayer is a Casual Taxable Person (CTP). Moreover, it shall be noted that Casual Taxable Person (CTP) cannot opt for the Composition Scheme.
As per the GST rules, a casual taxable person supplying goods in a taxable territory needs to obtain GST registration that will be valid for 90 days. However, this period of 90 days can also be extended. Besides this, the Casual Taxable Person needs to pay the advance deposit of estimated GST.
Let us understand this by taking the previous example,
Mr. X estimates his taxable goods at 2,00,000 INR. In this case, to obtain temporary GST registration, Mr. X has to deposit an advance amount of 36,000 INR (2,00,000×18%).
CTP Registration Process
Here is the registration process that needs to be followed by Casual Taxable Person:
(i) Applying for GST registration by furnishing PAN, Mobile Number and e-mail ID in Part-A of GST REG-1.
(ii) Verifying the furnished details by entering the OTP received on registered mail ID or phone number.
(iii) Post verifying a temporary reference number will be generated, using which, the CTP can furnish the Part-B of GST REG-1 form
(iv) The CTP now needs to pay the advance tax based on estimated tax liability.
(v) Once the advance tax appears in the e-cash ledger, the temporary registration certificate is generated.
How to extend the registration period?
The Casual Taxable Person can extend the registration period by filing the GST REG-11 Form before the end of its validity. It shall be noted that the registration period can be extended for not more than 90 days.
Returns need to be furnished by the CTP
Here is the list of GST Returns that needs to be filed by the casual taxable person:
(i) GSTR-1 Form that contains the details about the sale made by the CTP during the period of registration. This GST return shall be filed by the CTP on or before the 10th of every following month.
However, it shall be noted that the CTP needs not to furnish any Annual GST Return.
Refund by Casual Taxable Person
In case if there is any excess deposit of tax amount, then in such case a casual taxable person can take a refund of such excess amount.