CHAPTER IX
Casual taxable person in GST
Introduction
“Casual taxable person” means a person who occasionally undertakes
transactions involving supply of goods or services or both in the course or
furtherance of business, whether as principal, agent or in any other
capacity, in a State or a Union territory where he has no fixed place of
business.
A casual taxable person (other than those making supply of specified
handicraft goods) making taxable supply in India has to compulsorily take
registration. There is no threshold limit for registration. Casual Taxable
persons making supply of specified handicraft goods need to register only if
their aggregate turnover crosses Rs. 20 Lakh (Rs. 10 lakh for in case of
Special Category States, other than the State of Jammu and Kashmir.). A casual
taxable person cannot exercise the option to pay tax under composition levy.
He has to apply for registration at least five days prior to commencing his
business in India. The specified handicraft goods are as under:
A casual taxable person has to make an advance deposit of tax in an amount
equivalent to his estimated tax liability for the period for which the
registration is sought.
Registration
A casual taxable person has to apply for registration at least five days prior
to the commencement of business. There is no special form to register as a
casual taxable person. The normal FORM GST REG-01 which is used by other
taxable persons can be used for obtaining registration by casual taxable
person also. A casual taxable person, before applying for registration, should
declare his Permanent Account Number, mobile number, e-mail address, State or
Union territory in Part A of FORM GST REG-01 on the common portal, either
directly or through a Facilitation Centre notified by the Commissioner.
The Permanent Account Number shall be validated online by the common portal
from the database maintained by the Central Board of Direct Taxes. The mobile
number declared shall be verified through a one-time password sent to the said
mobile number; and the e-mail address shall be verified through a separate
one-time password sent to the said e-mail address. On successful verification
of the Permanent Account Number, mobile number and e-mail address, a temporary
reference number shall be generated and communicated to the applicant on the
said mobile number and e-mail address.
Using this reference number generated, the applicant shall electronically
submit an application in Part B of FORM GST REG-01, duly signed or verified
through electronic verification code, along with the documents specified in
the said Form at the common portal, either directly or through a Facilitation
Centre notified by the Commissioner.
The applicant will be given a temporary reference number 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. The registration certificate shall be issued
electronically only after the said deposit appears in his electronic cash
ledger. The amount deposited shall be credited to the electronic cash ledger
of casual taxable person. On depositing the amount, an acknowledgement shall
be issued electronically to the applicant in FORM GST REG-02.
The casual taxable person can make taxable supplies only after the issuance of
the certificate of registration. The certificate of registration shall be
valid for the period specified in the application for registration or ninety
days from the effective date of registration, whichever is earlier.
In case the casual taxable person intends to extend the period of registration
indicated in his application of registration, an application in FORM GST
REG-11 shall be submitted electronically through the Common Portal, either
directly or through a Facilitation Centre notified by the Commissioner, before
the end of the validity of registration granted to him. The validity period of
ninety days can be extended by a further period not exceeding ninety days. The
extension will be allowed only on payment of the amount of an additional
amount of tax equivalent to the estimated tax liability for the period for
which the extension is sought has to be deposited.
Returns
The casual taxable person is required to furnish the following
returns electronically through the common portal, either
directly or through a Facilitation Centre notified by the
Commissioner:
a) FORM GSTR-1 giving the details of outward supplies of
goods or services to be filed on or before the tenth day
of the following month.b) FORM GSTR-2, giving the details of inward supplies to be
filed after tenth but before before the fifteenth day of
the following month.c) FORM GSTR-3 to be filed after fifteenth day but before
the twentieth day of the following month.d) FORM GSTR-3B to be filed but before the twentieth
day of the following month.
It may be mentioned that presently only FORM GSTR-1 and FORM GSTR-3B is
required to be filed.
Special Returns procedure for registered persons with turnover up to Rs. 1.5 Crore
The government has notified that the registered persons
having aggregate turnover of up to 1.5 crore rupees in the
preceding financial year or the current financial year, as
the class of registered persons who shall follow the special
procedure as detailed below for furnishing the details of
outward supply of goods or services or both.
The said persons shall furnish the details of outward supply
of goods or services or both in FORM GSTR-1 effected
during the quarter as specified in column (2) of the Table
below till the time period as specified in the corresponding
entry in column (3) of the said Table, namely
The special procedure or extension of the time limit for
furnishing the details or return, as the case may be, under
sub-section (2) of section 38 (GSTR-2) and sub-section (1)
of section 39 (GSTR-3) of the Act, for the months of July,
2017 to March, 2018 shall be subsequently notified in the
Official Gazette.
Special Returns procedure for registered persons with turnover exceeding Rs. 1.5 Crore
The government has notified that the registered persons having aggregate
turnover of more than 1.5 crore rupees in the preceding financial year or the
current financial year shall furnish the details of outward supply of goods or
services or both in FORM GSTR-1 effected during the quarter as specified in
column (2) of the Table below till the time period as specified in the
corresponding entry in column (3) of the said Table, namely
The special procedure or extension of the time limit for furnishing the
details or return, as the case may be, under sub-section (2) of section 38
(GSTR-2) and sub-section (1) of section 39 (GSTR-3) of the Act, for the months
of July, 2017 to March, 2018 shall be subsequently notified in the Official
Gazette.
However, a casual tax person shall not be required to file any
annual return as required by a normal registered taxpayer.
Refund by Casual taxable person
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. The
refund relating to balance in the electronic cash ledger has
to be made in serial no. 14 of the last FORM GSTR-3 return
required to be furnished by him (instead of FORM GST RFD
01).