Casual Taxable Person

INTRODUCTION:

Generally, the liability to obtain GST registration arises on reaching or crossing the threshold limit of turnover prescribed under the act. But there are certain transactions that occasionally take place involving the supply of goods or services on the occurrence of which GST registration is required to be obtained. Those taxpayers who undertake such transactions have to register themselves as CASUAL TAXABLE PERSON.

What is the meaning of a CASUAL TAXABLE PERSON?

“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 principal, agent, or in any other capacity, in a State or a Union territory where he has no fixed place of business.

Any person who undertakes such transactions in India has to take registration as CTP.

Registration of CTP:

• Firstly, let us keep in mind that there is no threshold limit of turnover prescribed for registration as a Casual Taxable Person (other than those making the supply of specified handicraft goods). The threshold limit of 20 Laks (now 40 Lakhs from the F.Y. 2019-20) will be applicable for casual taxable persons who are specifically dealing with the specified handicraft goods. The specified handicrafts goods are mentioned in Annexure-1. The person has to obtain the registration at least 5 days before undertaking such transactions. Let us now explain how you can take registration as CTP.
• There is no separate form for registration as CTP. A person has to file Form GST REG 01 on the common portal of GST clearly submitting their PAN details, Mobile Number, and Email id. On filing Part-A of GST REG 01, the PAN details will be verified with the database maintained by the Central Board of Direct Tax and the mobile number and email id will get verified through a One-time password separately sent on both. On successful verification of Part-A of the application, A temporary reference number will be generated.
• On the successful generation of the Temporary Reference Number, the taxpayer shall compulsorily deposit the estimated amount of tax on the transaction to be undertaken for which GST registration as CTP is being obtained. On depositing the amount, an acknowledgment shall be issued electronically to the applicant in FORM GST REG-02.
• On depositing the tax amount, the taxpayer can move forward with filing Part B of registration. This part requires details regarding the details of proprietor/partner/directors as the case may be, the details of the authorized signatory, the details of the principal place of business, the details of the additional place of business, and the details of goods/services.
• The authorized officer will verify these details and if there is no discrepancy found in these details, the taxpayer shall be issued registration certificate.
• On obtaining the GST certificate, the cash ledger of the taxpayer will be credited with the amount of tax already deposited by him.
• Here, one should note that CTP cannot opt for a composition scheme

Validity of GST 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, 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.

Which returns are required to be filed by CTP?

1) GSTR-3B: The Casual taxable person is required to file a monthly return of GSTR-3B through which the aggregate details of outward taxable supplies and Input tax credit availed shall be declared. The Casual taxable person is required to dispose of their tax liability by filing this return. This return shall be filed on or before the 20^th of the following month.

2) GSTR-1: The casual taxable person shall file this return declaring the invoice-wise details of outward taxable supplies. This return shall be filed on a monthly basis for those taxpayers whose turnover in the previous year exceeds Rs. 1.5 Cr. For those taxpayers whose turnover does not exceed Rs. 1.5 cr shall opt to file this return on a quarterly basis. The casual taxable person who has opts to file a monthly return shall file it on or before 11 th of the following month. Those casual taxpayers who have opts to file this return on a quarterly basis shall file this return on the 11^th of the following quarter.

Note: Casual taxable persons are required to file Annual returns.

Refund of access advance deposit.

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.