In any tax regime, registration is the most important requirement as it helps in identifying the taxpayers. Identification of taxpayers under a tax system further helps in ensuring tax compliance in the economy. Likewise, registration under GST means obtaining a unique GST identification number that helps the taxpayers in paying taxes and claiming input tax credit under GST regime.
If a particular person is not registered under GST, he or she will not be able to collect taxes from their customers. Furthermore, they will not be able to avail input tax credit for the tax paid on inward supplies. There are certain category of persons who are required to register under GST compulsorily. Section 24 of the CGST Act, 2017 lists those categories.
Compulsory Registration Under GST
- Persons making inter-state taxable supply
- Casual taxable persons
- Persons required to pay tax under reverse charge
- Persons required to pay tax under sub-section (5) of section 9
- Non-resident taxable persons
- Persons who are required to pay Tax Deducted at Source (TDS) under section 51. This is immaterial of the fact that whether they are separately registered under the Act or not.
- Persons making taxable supply of goods or services on behalf of other taxable persons as an agent or otherwise.
- Input Service Distributor, whether separately registered under the Act or not.
- Persons supplying goods or services other than supplies specified under sub-section (5) of section 9. Such supplies are made through an electronic commerce operator who is required to collect tax at source under section 52.
- Every electronic commerce operator
- Persons supplying online information and database access or retrieval services from a place outside India. Such services are supplied to a person other than a registered person in India.Any other person notified by the government on the recommendations of the GST Council.
This article talks about the various provisions with regards to a Casual Taxable Person under GST. So, let’s understand who is a casual taxable person, the registration process, returns and refund with regards to such a person.
Who is a Casual Taxable Person?
According to section 2(20) of the CGST Act, 2017, Casual Taxable Person means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of his business. Such a person may act as a principal, an agent or a person in any other capacity in a State or UT, where he has no fixed place of business.
Thus, every casual taxable person making taxable supplies in India must compulsorily register under GST. Furthermore, such a person cannot opt for registration under Composition Scheme.
Registration of a Casual Taxable Person
As per the decisions taken in the 32nd GST Council Meeting, a person is required to register under GST if his annual turnover in the preceding financial year or the current financial year exceeds Rs 40 Lakhs. This is in case the person is engaged in the supply of goods. Likewise, a supplier of goods in special category states is required to register under GST if his annual turnover in the preceding or current financial year exceeds Rs 20 Lakhs.
However, the supplier of services needs to register under GST if his annual turnover in preceding or current financial year exceeds Rs 20 Lakhs.
But, as mentioned above, there are certain category of persons who are obligated to register under GST irrespective of their annual turnovers. This means the annual turnover threshold for GST does not apply to such persons. Casual Taxable Persons is one of such categories of persons who need to mandatorily get registered under GST.
Further, the casual taxable person cannot opt for registration under the GST Composition Scheme. He or she must avail a temporary registration, which is valid for a period of 90 days, at least five days before the commencement of business in India. Additionally, the casual taxable person is obligated to pay advance tax. Such an advance tax is equal to his approximate tax liability for a period for which such a person has availed registration under GST.
Process of Registration under GST
1. Application For Registration in Form GST REG-01
For availing registration under GST, there is no separate form to apply for registration by a casual taxable person. Much like a normal taxpayer applying for registration under GST, he or she needs to apply for registration in Form GST REG-01.
Further, the casual person needs to declare his PAN, mobile number, email address, State or UT in Part A of Form GST REG-01. This is done before application for registration via common portal either directly or through the Facilitation Centre.
2. Verification of Details Mentioned in GST REG-01
The PAN of the casual taxable person gets confirmed online via the common portal through the database maintained by the Central Board of Direct Taxes (CBDT. Furthermore, the mobile number of such a person gets verified via One Time Password (OTP) sent on the mobile number mentioned in Part A of the GST REG-01. Similarly, the email address of the casual taxable person is verified via OTP sent on the email address so mentioned.
3. Generation of Temporary Reference Number (TRN)
Once, the PAN, mobile number and email address of the casual taxable person are verified successfully, a temporary reference number is generated. Such a number is communicated to the casual taxable person on his registered mobile number and email address.
4. Submission of Application
Upon receiving the TRN, the casual taxable person must submit the application electronically in Part B of Form GST REG-01. This application must be duly signed and verified via electronic verification code. Further, the applicant also needs to submit the documents specified in the Form at the common portal.
5. Depositing Advance Tax
The casual taxable person is now required to deposit the mandatory advance tax using the TRN provided via the common portal. The tax amount such deposited equals approximate tax liability for the period for which the casual taxable person has availed registration. This tax amount gets credited in the electronic cash ledger of the applicant. Further, an acknowledgement proclaiming such a deposit of advance tax is issued to the applicant electronically in Form GST REG-02.
6. Issuance of Registration Certificate
Once the payment of advance tax gets reflected in the electronic cash ledger of the casual taxable person, the registration certificate is issued to him electronically.
7. Validity of the Registration Certificate
A Casual Taxable Person can make supplies only after the Registration Certificate is issued. Such a certificate is valid for a period as specified in the application for registration or 90 days from the date of registration, whichever is earlier.
8. Extension of the Registration Period
A Casual Taxable Person can seek to extend the period of registration so specified in his application for registration. This is done by submitting an application electronically through the common portal in Form GST REG-11.
However, such an application for the extension of the registration must be made before the end of the validity of the registration provided to him. Also, the validity period of 90 days can be extended by a further period of not more than 90 days. Such an extension of the registration period is permitted only on the payment of additional advance tax. This advance tax amount equals the approximate tax liability for the period for which such an extension is seeked by the casual taxable person.
Returns Filed By A Casual Taxable Person
A Casual Taxable Person is required to file the following returns electronically via the common portal.
1. Form GSTR-1
GSTR-1 is a form through which the Casual Taxable person specifies the details of his or her outward supplies or both. Such a return is filed on or before the 10th of the following month.
2. Form GSTR-2
GSTR-2 mentions the inward supplies of goods or services or both. Such a return is filed after 10th but before the 15th day of the following month.
3. Form GSTR-3
GSTR-3 is a detailed summary of both GSTR-1 and GSTR-2 mentioned above.This return is filed monthly after 15th but before the 20th of the following month.
GSTR-3B is a brief summary of both the purchases and sales of a particular month. This return is to be filed before the 20th day of the following month.
Note: Currently, only GSTR-1 and GSTR-3B are required to be filed by a registered person under GST.
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Refund In Case of Casual Taxable Person
A Casual Taxable Person is entitled to receive any balance advance tax paid by him after his tax liability is adjusted. However, this balance amount of advance tax gets refunded only if the Casual Taxable Person has filed all tax returns for the period for which the registration was availed by such a person.
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GST Refund Process: How To Claim GST Refund?