Who is Casual Taxable Person in GST – IndiaStartupBiz
Casual Taxable Person is a person who occasionally undertakes transactions involving supply of goods or services in the course or furtherance of his business in a state or Union territory where he has not had any fixed place of business.
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A casual taxable person must:
- Compulsorily take registration as there is no threshold limit for the registration.
- Apply for registration at least 5 days prior to the undertaking business.
- Cannot exercise the option to pay taxes under the composition scheme.
- Make an advance deposit of tax which is equivalent to his estimated tax liability.
Registration for a casual taxable person is mandatory irrespective of his turnover. There is no special form is required for the Casual Taxable Person. The normal FORM GST REG-01 which is used by other taxable persons for registration can be used by casual taxable person also.
Process of registration
The Casual Taxable Person must declare his PAN number, contact number, email ID, state or union territory in part A of Form GST REG – 01 on the common portal.
- The PAN validation is done online by the common portal from the database maintained by the Central board of direct taxes.
- The mobile number and email address validation is done through different OTPs sent to the said mobile number and email address.
- On successful verification of the PAN, email address and mobile number, a temporary reference number shall be generated and communicated to the applicant on the said mobile number and email address.
- The applicant shall electronically submit an application in part B of Form GST REG – 01, using the above reference number generated, duly signed and get it verified through the electronically verified code, along with documents specified, either directly or through a Facilitation Centre notified by the Commissioner.
- The applicant shall make the mandatory advance deposit of tax which is equivalent to the estimated tax liability for the period for which registration is sought.
- The said deposit appears in the electronic cash ledger of the casual taxable person and after that the registration certificate shall be issued electronically. On the depositing the amount, an acknowledgement shall be issued electronically in Form GST REG – 02.
Validity of Registration
The GST certificate of registration for a Casual Taxable Person shall be valid for ninety days or period specified in the certificate from the effective date of registration, whichever is earlier.
An extension may be granted by the proper officer at the request to the applicant must limit to 90 days and will be allowed only on advance deposit of tax equal to the estimated tax liability.
Returns to be Furnished
A casual taxable person is required to file the following returns:
- Form GSTR-1: Contains the details of outward supplies of taxable goods or services to be filed on or before the 10th day of the following month.
- Form GSTR-2: Contains the details of the inward supplies of taxable goods or services to be filed after the 10th but before the 15th day of the following month.
- Form GSTR-3: To be filed after 15th day but before the 20th day of the following month.
A casual taxable person shall not be required to file annual return alike the normal registered taxpayers.
Refund to a Casual Taxable Person
A casual taxable person is eligible for the refund of balance advance tax paid after adjusting his tax liability. This balance advance tax can be refunded only when all the returns are furnished. The refund relating to balance in the electronic cash ledger has to be made in serial no. 14 of Form GSTR- 3.
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