The arrangements made under GST characterize a Casual Taxable Person as any person who transacts goods and services at times while going about as a Principal, Agent or in some other capacity with regards to the promotion of the business, however does not have any fixed spot of business in the given taxable region,
For example,
Mr. Basu has an Art house in Delhi however has plans to show the Art Pieces in a display/event in Mumbai. Under such conditions, Mr. Basu will be considered as a casual taxable individual and would be required to apply for enlistment as a casual taxable individual within 5 days before the occasion.
How is Casual Taxable Person not the same as Regular Taxpayer?
Generally, a regular taxpayer is required to file his returns in a regular time, keep up accounts according to the GST Act, have a fixed spot of business in the given taxable region, and so on. Then again, a Casual tax payer, because of the nature of the business, does not have a fixed location of business and the provisions goods and services sometimes in the given taxable domain.
To oblige the one of a kind necessities of such tax payers, exceptional arrangements have been made under the GST Act for enlistment of casual taxable people.
Enrollment of Casual Taxable Person in GST
Like any individual associated with the supply of goods and services, it is required for a casual taxable individual making a taxable supply to get GST enrollment. Under GST for the casual taxable individual, there is no edge limit for taking enrollment, but the casual taxable individual can’t practice the choice to pay tax under composition scheme.
Focuses to be noted:
1. There is no exceptional form for the enrollment, the casual taxable individual can utilize the normal form GST REG-01
2. The enrollment ought to be finished under the uncommon classification atleast 5 days before the undertaking business.
3. Before applying for enrollment, he ought to declare his:
- Permanent Account Number (PAN)
- Mobile Number
- Email address
- State or Union Territory
P.S: Notification No. 32/2017-CT dated 15th September 2017 excludes casual taxable people, who make taxable supplies of workmanship products under Sec 23(2) of the Act from getting enrollment [ subject to certain conditions].
Advance Payment of tax by Casual Taxable Person
A Casual Taxpayer is required to make an early deposit of tax for a sum equivalent to the evaluated tax liability of such individual for the period for which the enrollment is sought for. On depositing the amount, an affirmation will be issued electronically to the candidate in FORM GST REG-02 and the amount deposited will be credited to the individual’s electronic ledger. The casual taxable individual can make taxable supplies only after the issuance of the certificate of enrollment.
For example if that Mr. Basu is anticipating a sale of RS. 1,00,000 and tax rate material is 12% then he needs to store advance deposit of Rs. 12000.
Returns to Be Filed
Like a regular taxpayer, a casual taxpayer is required to file the monthly/quarterly return forms- GSTR 1 and GSTR 3B.
Legitimacy of Registration Certificate
The confirmation of enrollment as a casual taxable individual is substantial for the period as indicated by the tax payer or 90 days from the effective day of enrollment (whichever is prior). The tax payer can look for an expansion on the given certificate by making an early payment of tax in a sum equal to evaluated tax liability (pertinent for the extended period). The best official may stretch the enrollment for a period not surpassing 90 days.
Refund of Advance Deposited
The casual taxable individual is qualified for the refund of any balance of the prior tax saved by him by changing his tax liability. The balance advance tax deposit can be discounted only after all the returns are filed. What’s more, the Casual taxable individual can also benefit ITC in regard of goods or services or both.
Contact Certicom Consulting for any further queries.