Casual Taxable Person under GST | Registration Benefits

The term ‘Casual Taxable Person’ is defined under section 2(20) of the Central Goods and Services Tax Act, 2017 which means –

‘A person who occasionally undertakes transactions involving supply of either goods or services or both in the course/ furtherance of business (whether as principal, agent or in any other capacity) in a State/ Union Territory where he has no fixed place of business’.

Accordingly, the features of ‘Casual Taxable Person under GST’ are simplified and summarized hereunder –

• Supply of goods or service or both is undertaken by the person on an occasional basis;
• Such supply is undertaken in the course or furtherance of the business; and
• Supply is undertaken in a State/ Union Territory where the person doesn’t have a fixed place of business.

Accordingly, any trader or businessman or service provider who undertakes occasional supplies in another state/ union territory will be treated as a ‘Casual Taxable Person’ under GST.

Say, for example, Mr. A having a place of business in Ahmedabad is providing management consultancy services in Delhi (where Mr. A is not having a place of business). Accordingly, Mr. A will need to obtain registration under Casual Taxable Person in Delhi prior to the provision of said service.

Unlike a normal taxable person, a ‘Casual Taxable Person under GST’ is mandatorily required to obtain registration under GST. Meaning thereby that benefit of the threshold limit is not available to the ‘Casual Taxable Person’.

Salient features with regard to ‘Casual Taxable Person’ which needs to be kept in mind are highlighted hereunder –

• Threshold limit benefit is not available to Casual Taxable Person;
• Compulsory registration under the Casual Taxable Person category should be obtained at least five days before the commencement of the business;
• Application in Form GST REG-01 is to be done for obtaining registration as Casual Taxable Person;
• The validity of registration under Casual Taxable Person is for a period of 90 days;
• If, the Casual Taxable Person needs to extend the registration beyond the period of 90 days. Then, an application in Form GST REG-11 needs to be submitted. Such application in Form GST REG-11 should be furnished before the end of the validity of registration.

The Casual Taxable Person needs to make an advance deposit of tax. The details of the same are highlighted hereunder

• An advance deposit of tax is to be done at the time of obtaining registration under the category of Casual Taxable Person;
• Such advance deposit of tax should be made to the extent of an amount equal to his estimated tax liability;
• Vide circular no. 71/45/2018-GST dated 26th October 2018 it has been clarified that estimated tax liability should be calculated after considering the due eligible Input Tax Credit.

Importantly, the Casual Taxable Person is eligible to obtain a refund of the balance amount of advance deposit of tax, if any, after adjusting the tax liability.

In this regard, circular no. 71/45/2018-GST dated 26^th October 2018 has provided the following clarification-

• In case of long running exhibition i.e. for a period of more than 180 days, the taxable person cannot be treated as Casual Taxable Person.
• Here, the person should obtain registration under GST as a normal taxable person.
• At the time of obtaining registration as a normal taxable person, the person should furnish a copy of the allotment letter (granting him permission to use of the premises for exhibition). Accordingly, such an allotment letter will be treated as a proper document for ‘proof of place of business’.
• Notably, in such case, the person is not required to pay any advance tax for the purpose of GST registration.
• Post completion of the exhibition, the person should surrender the registration.

The Casual Taxable Person is required to furnish the following return under GST

1. Form GSTR-1 – Details of Outward supplies of goods or services; and
2. Form GSTR-3B – Summary of GST liabilities and payment of tax thereon.

Notably, the returns are to be furnished on a monthly basis. However, if the Casual Taxable Person has opted for the QRMP Scheme under GST (Quarterly Return with Monthly Payment Scheme), then, filing of IFF in GST/ GSTR-1 and GSTR-3B on a quarterly basis is required.