Learn about who is a Casual Taxable Person Under GST Regime By CS Manoj Sharma


Dear Professional Colleagues,

GST has brought a lot of changes in the way traders/services providers use to work. The term Casual Taxable Person under GST is the source of confusion to many people.

As per Section 2(20) of 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 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.
 
The certificate of registration issued to a casual taxable person or a non-resident 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 and such person shall make taxable supplies only after the issuance of the certificate of registration:

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.
 
A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought:

Provided that where any extension of time is sought, casual taxable person shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.
 
The amount deposited shall be credited to the electronic cash ledger of such person.
 
Person is required to be registered under GST irrespective of turnover. One may think why he would require GST registration if he occasionally undertakes transactions, if his aggregate turnover does not exceed 20/10 lakh rupees. It’s true that a person is not required to get GST registration if his aggregate turnover is below that threshold. But think about a situation where M/s A an event management Company registered in Delhi is supplying such services in Maharashtra. Section 20 of CGST ACT, 2017 requires registration in the state from where a supplier makes a taxable supply. In this case, supply is from Maharashtra and as M/s A is a taxable person it is legally bound to take registration in all such states from where he makes taxable supply. In this situation M/s does not need to take regular registration in Maharashtra, instead it may take registration as casual taxable person, which will relieve it from the hassle of regular return filings. Such registration will expire on expiry of 90 days automatically unless extended.

I hope that this small article will relieve you from all confusions about Casual Taxable Person.

Click here to read the disclaimer


Write a Comment