Casual Taxable Person under GST
Who is a Casual Taxable Person under GST?
As per section 2(20) of the CGST Act, 2017, “casual taxable person” means a person who occasionally undertakes transactions involving the supply of goods or services or both in the course or furtherance of business, whether as a principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
In simple words, a “casual taxable person” sometimes does business by selling goods or services in a place (State or Union territory) where they don’t have a permanent shop or office. This person could be the main seller, a representative, or in any other role related to the business.
For example, Mr. A has a fixed business place in Bangalore. He is providing Management consultancy services in Pune where he has no place of business. Hence Mr A has to register as a casual taxable person in Hyderabad before providing such services.
Is a Casual Taxable Person is required to get registered under GST?
Yes. A casual Taxable Person is compulsorily required to get registered under GST irrespective of his turnover/gross receipts (Section 24 of the CGST Act, 2017).
How to take GST registration as a Casual Taxable Person?
The GST registration process for casual taxable person is the same as normal taxpayers. The only difference is while filling the registration form, he has to select “Yes” in the “Are you applying for registration as a casual taxable person?” field.
However, unlike normal registration, a casual taxable person needs to pay the provisional taxes in advance. Also, the following information needs to be filled in case of a casual taxable person.:
When a casual taxable person should take registration?
A casual taxable person shall electronically apply, at least five days before the commencement of business.
What is the maximum period for which registration can remain effective as a casual taxable person?
As per section 27(1) of the CGST Act, 2017, the certificate of registration issued to a casual taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier, provided that the proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of ninety days by a further period not exceeding ninety days.
Can a casual taxable person opt for a composition levy?
No. A casual taxable person has to pay GST the same as a normal taxpayer. (Section 10(2)(f) of the CGST Act, 2017.
Which returns are applicable for casual taxable persons?
A casual taxable person has to file the following returns:
- FORM GSTR-1 gives the details of outward supplies of goods or services
- FORM GSTR-3B gives the summary of supplies along with the payment of tax
However, a casual taxable person shall not be required to file any annual return as required by a normally registered taxpayer.
Can a Casual Taxable person avail Input tax credit?
Yes. Casual taxable persons can avail of Input tax credit.
Can a Casual Taxable person claim a refund of extra tax paid at the time of registration?
The casual taxable person is eligible for the refund of any balance of the advance tax deposited by him after adjusting his tax liability. The balance advance tax deposit can be refunded only after all the returns have been furnished, in respect of the entire period for which the certificate of registration was granted to him had remained in force.
Conclusion
Casual taxable persons under GST are individuals or entities who occasionally conduct business in states or union territories where they lack a fixed place of business.
Despite the temporary nature of their operations, they must register under GST and meet their tax obligations. While they have certain reporting requirements and can claim input tax credit, they are exempt from filing annual returns. They can also seek refunds for any excess tax paid at the time of registration.
