Casual Taxable Person
Who is a casual taxable person?
Casual taxable persons supply goods and/or services, but have no fixed place of business. They may act as a primary, as an agent, or in any other capacity, and do business in either a state or a union territory.
Does a casual taxable person have to register?
Those who meet the criteria for a casual taxable person, except those who supply specified handicraft goods, are liable to register under GST.
Is there any threshold for casual taxable persons to register?
There is no threshold for casual taxable persons to register; all casual taxable persons must register under GST. However, those who supply specified handicraft goods only need to register if their overall annual turnover exceeds Rs. 20 lakhs, or Rs. 10 lakhs for special category states (except Jammu and Kashmir).
Can a casual taxable person pay tax under the composition scheme?
No, casual taxable persons cannot pay tax under the composition levy.
What are the specified handicraft goods?
Taxable persons who supply the following specified handicraft goods are not required to register as casual taxable persons:
Serial No. Products HSN Code 1 Leather articles (including bags, purses, saddlery, harnesses, and garments) 4201, 4202, 4203 2 Carved wood products (including boxes, inlay works, cases, and casks) 4415, 4416 3 Carved wood products (including tables and kitchenware) 4419 4 Carved wood products 4420 5 Wood turning and lacquerware 4421 6 Bamboo products (decorative and utility items) 46 7 Grass, leaf, reed and fiber products; mats, pouches, and wallets 4601, 4602 8 Paper mache articles 4823 9 Textiles (handloom products, handmade shawls) 10 Hand-printed textiles 51, 52, 54 11 Zari thread 5605 12 Carpet, rugs and durries 57 13 Textiles (hand embroidery) 58 14 Theatre costumes 61, 62, 63 15 Coir products (including mats and mattresses) 5705, 9404 16 Leather footwear 6403, 6405 17 Carved stone products (including statues, statuettes, figures of animals, writing sets, ashtrays, and candle stands) 6802 18 Stones inlay work 68 19 Pottery and clay products (including terracotta) 6901, 6909, 6911, 6912, 6913, 6914 20 Metal tables and kitchen ware (copper and brass ware) 7418 21 Metal statues, image/statue vases, urns and crosses of the type used for decoration of metals 8306 22 Metal bidriwork 8306 23 Musical instruments 92 24 Horn and bone products 96 25 Conch shell crafts 96 26 Bamboo furniture, cane/rattan furniture 27 Dolls and toys 9503 28 Folk paintings, Madhubani, Patchitra, Rajasthani miniatures 97 29 Chain switch Any chapter 30 Crewel, Namda, Gabba Any chapter 31 Wicker-willow products Any chapter 32 Toran Any chapter 33 Articles made of shoal Any chapter
What is the threshold to register for casual taxable persons who supply specified handicrafts?
Casual taxable persons who supply specified handicraft goods must register if their overall annual turnover exceeds Rs. 20 lakhs, or Rs. 10 lakhs for special category states (except Jammu and Kashmir).
Does a casual taxable person have to deposit any tax in advance?
Yes, a casual taxable person has to make an advance deposit of tax for registration. The amount to be paid is equal to the person’s estimated tax liability for the period of the registration.
What happens after a casual taxable person makes an advance deposit of tax?
After the taxpayer has made an advance deposit of tax, they will be given a temporary reference number by the Common Portal. A registration certificate will be issued electronically to the taxpayer after the deposit appears in their electronic cash ledger. Once this is done, an electronic acknowledgement will be sent to the taxpayer through Form GST REG-02.
What is the deadline by which a casual taxable person must register before starting their business?
A casual taxable person must register at least 5 days before starting their business in India.
Which form should a casual taxable person fill out to register?
A casual taxable person should fill out Form GST REG-01, just like any other taxable person, to register under GST.
What prerequisites does a casual taxable person need to complete before registering under GST?
Before applying to register under GST, a casual taxable person must declare their PAN (Permanent Account Number), mobile number, e-mail address, and State/Union territory in Part A of Form GST REG-01 in the common portal of the official GST website. This can be done directly by the taxable person, or through a Facilitation Centre notified by the Commissioner.
After all this information is verified, a temporary reference number is generated and sent to the mobile number and e-mail address given by the person. The taxable person must then use this reference number to fill out Part B of the same form. The form must be authorized or signed by the person and then sent to the common portal of the official GST website, either directly or through a Facilitation Centre notified by the Commissioner.
When can a casual taxable person start making supplies?
A casual taxable person can only start making taxable supplies after the advance deposit has been paid and the certificate of registration has been issued. This certificate is valid for the time mentioned in the application for registration, or 90 days, whichever is earlier.
Can a casual taxable person extend the period of registration? How?
Yes, a casual taxable person can extend the period of registration mentioned in their application. They need to fill out Form GST REG-11 and submitting it through the common portal either directly, or through a Facilitation Centre notified by the Commissioner. This should be done by the end of the valid registration period.
Note: The initial 90 days cannot be extended by a period longer than 90 days. Extending the registration period requires submitting an additional amount of tax equivalent to the estimated tax liability for the extended period is submitted.
What returns is a casual taxable person required to submit?
A casual taxable person is required to submit the following returns through the common portal of the official GST website, either directly or through a Facilitation Center notified by the Commissioner:
Form GSTR-1: A return to provide details of sales of goods or services, which is to be filed on or before the 10th of the following month.
Form GSTR-2 A return to provide details of purchases of goods or services, which is to be filed between the 10th and 15th of the following month.
Form GSTR-3 A monthly return which is to be filed between the 15th and the 20th of the following month.
Form GSTR-3B A quarterly return which is to be filed before the 20th of the following month.
Notes: A casual taxable person is not required to file an annual return as required by a normal registered taxpayer. As of now, only Form GSTR-1 and Form GSTR-3B have been made mandatory.
When is a casual taxable person eligible for a refund?
A casual taxable person is eligible for a refund for the amount of advance tax they deposited for registration. The person is only eligible to receive a refund after all returns for the period of registration have been submitted and their tax liability has been adjusted accordingly. Information regarding the refund is provided in section 14 of Form GSTR-3.