GST Casual Taxable Person: A casual taxable person implies an individual who supplies taxable goods or services occasionally in a taxable Territory where they do not have any fixed place of business. The individual can act as a principal or agent or in any other capacity supply goods or services for the progression of the business.
An example of simple registration is participation in an exhibition in a different state. When an individual participates in any display outside the state where their usual registration place is, they must register as a casual taxable person to undertake the sale and purchase of various goods in that different state.
- Registration for a Casual Taxable Person
- Documents needed for the GST Registration of Casual Taxable Person
- How can a Casual Taxable Person apply for registration
- Returns that need to be Furnished by the casual taxable person
Registration for a Casual Taxable Person
A Casual Taxable person cannot choose to opt for a Composition Scheme.
A CTP needs to obtain a Temporary Registration that is valid for a maximum period of 90 days or three months in the State from where the person seeks to supply as a CTP. A Casual Taxable Person is needed to make the advance deposit for the GST (based on an estimation of the tax liability).
For instance, Say Ms. A estimates her taxable services at Rs. 200000. She must make an advance deposit of Rs.36000 (18% of Rs.200000) to obtain a temporary registration.
Documents needed for the GST Registration of Casual Taxable Person
- Business Name, Copy of PAN card of the applicant.
- Mobile Number and Email address for communicating and sending OTP.
- The applicant’s existing registration, if any. (Ex: GSTIN, Incorporation document or the registration with any other authority such as MCA)
- Copy of Incorporation document evidencing the applicant’s existence (E.g.: Copy of the Partnership deed, certificate of company incorporation, etc.)
- Details of partners/directors/promoters etc., of the applicant and copy of the address proofs and ID proofs such as the PAN, Aadhar card, Photo, Email ID, Mobile Number.
- Bank Details: documents like Cancelled Cheque of firm/Copy of the passbook or bank statement with the applicant’s name are needed.
- Details of Principal Place of Business address and documents evidencing the ownership of the premises like Property Tax Receipt or Electricity Bill or legal ownership document of the place where business is to be carried on.
- If any other place of business, the same documents as above are needed.
- Nature of business that the applicant carries out. Also, specify the top 5 products or services provided by the applicant.
- Authorisation letter provided on the applicant’s Letter Head to authorise one or more persons for signing all documents related to GST. An authorisation letter to be signed by persons other than the authorised signatories. An authorisation letter is not needed in the case of the proprietorship.
- State-specific registration in case it is applicable.
- Payment of tax or challan on the estimated supplies that have been made during the period of Casual registration.
How Can a Casual Taxable Person Apply for Registration
- Apply for the registration by declaring of PAN, mobile number and email
- Validate and verify the PAN, mobile number and email via OTP
- After Successful Verification, a Temporary Reference Number is going to be Generated using which advance tax is to be made. As an Acknowledgement for a deposit, Form GST Reg 02 is going to be given electronically.
- Using the generated reference number, the applicant can fill up and submit the PART B of Form GST REG – 01 electronically.
- The Registration Certificate must be issued electronically after the tax deposit has appeared in the electronic cash ledger.
- After receiving the receipt of the Registration Certificate, CTP can make the taxable supplies.
- Validity of certificate- A specified period in the application or 90 days (3 months) from the effective registration date, whichever is earlier.
Returns That Need to be Furnished by the Casual Taxable Person
The casual taxable person (CTP) is needed to furnish the following returns
- GSTR-1 is a Details about the outward supplies of goods or services of a specific month. This return must be filed before the 10TH day of the month following Or Quarter end based on Turnover.
- GSTR-2 is a Details for the inward supplies of any particular month. This return must be filed before the 15th day of the month following.
- GSTR-3 is a Details about both the purchases and sales of a specific month. This return must be filed prior to the 20th day of the following month.
- GSTR-3B is a summary of both the purchases and sales of a particular month. This return must be filed prior to the 20th day of the month following.
Note: Currently, only GSTR-1 and GSTR-3B must be filed by a registered person under GST.
A casual tax person must not file an annual return as directed by a usually registered taxpayer.