Casual Taxable Person Under GST: Definition and its Applicability. Get updates for GST Registration Compliance for Casual Taxable Person, Return Compliance, Tax Compliance for Casual Taxable Person. Based on Section 2(20) of the GST law, a ‘ Casual Taxable Person ( CTP) is an individual who sometimes carries out transactions involving supply of items or services, or both, in the course or furtherance of organization, whether as principal, agent or in any other capacity, in a State or a Union territory where he has No Fixed Place of Business.
Thus, every CTP needs to mandatory registered under Goods and Services Tax law, regardless of their turnover limitation if the buyer of products or services, or both, plans to claim Input Tax Credit from such deal.
Casual Taxable Person Under GST
Definition as per CGST Act 2017
” casual taxable individual” indicates an individual who periodically undertakes deals involving supply of goods or services or both in the course or furtherance of company, whether as principal, representative or in any other capability, in a State or a Union area where he has no set place of business;-LRB- .
An individual would be regarded as a casual taxable person if he carries out supply of products or services or both:
- ( a) Occasionally, and not on a routine basis;-LRB-
- ( b) Either as principal or representative or in any other capacity;-LRB-
- ( c) In a State/ Union Territory where he has no fixed business.
A trader, entrepreneur, provider, and so on carrying out occasional deals like supplies made in trade fairs would be treated as a ‘casual taxable person’ and will have to get registration because capability and pay tax. E.g., A jeweller continuing a company in Mumbai, who carries out an exhibition-cum-sale in Delhi where he has no set workplace, would be treated as a ‘casual taxable individual’ in Delhi.
The following elements need to be kept in mind:
- The threshold limits for registration would not use and he would be needed to get registration regardless of his turnover;-LRB-
- He is needed to look for registration at least 5 days prior to beginning of company;-LRB-
- The registration would be valid for 90 days or such period as specified in the application, whichever is much shorter;-LRB-
- An advance deposit of the estimated tax liability is required to be made together with the application for registration.
GST Registration Compliance
- Casual Taxable Person are needed to get registration 5 days prior to the commencement of organization
- Certificate of registration provided to a Casual Taxable Person will stand for a duration of 90 days and the designated officer can further extend this duration by 90 days, provided a reasonable cause is offered by the taxable individual.
- A Casual Taxable Person can make taxable supply only after acquiring the certificate of registration.
Analysis of Special provisions relating to casual taxable person and Non- resident taxable individual
The certificate of registration released to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period specified in the application for registration or ninety days from the reliable date of registration, whichever is earlier, extendable by proper officer for more period of optimum 90 days at the demand of taxable person.
A casual taxable individual or a non-resident taxable individual while looking for registration will make an advance deposit of tax in an amount equivalent to the estimated tax liability. Where any extension of time is looked for, such taxable individual will transfer an extra amount of tax equal to the approximated tax liability for the period for which the extension is looked for.
Such deposit shall be credited to the electronic money journal of and used in the way Provided under area 44 (Payment of Tax, interest, charge and other quantities) of the Act.
Since the nature of the activity carried out by a casual taxable individual and non-resident person are short-term as compared to a regular taxable person, extra safeguards have been put to make sure that the registration is approved for a restricted duration and the tax liability is recovered ahead of time.
What is the credibility period of the Registration certificate issued to Casual Taxable Person and non-Resident Taxable individual?
The certificate of registration released to a “casual taxable person” or a “non-resident taxable person” shall stand for a period of ninety days from the effective date of registration. A proviso has actually been made available in this statute by enshrining a discretionary authority for the appropriate officer, who may at the request of the stated taxable person, extend the validity of the aforementioned duration of ninety days by a more duration not surpassing ninety days.
Tax Compliance:
- The Casual Taxable Person is required to make an advance deposit of tax in a quantity equivalent to the approximated tax liability for the period for which registration is looked for.
- The quantity deposited by a Casual Taxable Person (CTP) will be credited into the electronic money ledger of the person and will consequently be changed against the tax liability.
Returns Compliance:
A CTP will for the whole duration for which the certificate of registration approved to him had actually remained in force, has to furnish all the returns needed under area 34 to get refund of Advance tax paid and further he is required to provide an Annual Return for every financial year in Electronic kind on or prior to the thirty first day of December following completion of such financial year.
Non-residents Suppliers Compliance:
On comparable lines, even non-residents who occasionally provide items or services but have no set business in India will need GST registration. The methods associating with registration and payment of estimated tax are the same as for ‘casual taxable individual’. “For non-residents who periodically provide goods or services, it is needed that the application for registration be signed by an authorised Agent.
Author– CA. Kartik Joshi-9824964309
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