Casual taxable person in GST - GST Ready Reckoner - GST

Casual taxable person in GST Introduction: Casual taxable person means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. A casual taxable person (other than those making supply of specified handicraft goods and notified handmade goods) making taxable supply in India has to compulsorily take registration under GST irrespective of the threshold limit. Casual Taxable persons making supply of specified handicraft goods and notified handmade goods need to register only if their aggregate turnover exceed an amount of 20 lakh [10 lakh in case of Special Category States of Mizoram, Tripura, Manipur and Nagaland] in a financial year, the aggregate value of such supplies, to be computed on all India basis. A casual taxable person cannot exercise the option to pay tax under composition levy. He has to apply for registration at least five days prior to commencing his business in India. The specified handicraft goods and notified handmade goods are as under Notification No. 3/ 2018 Integrated Tax dt. 22.10.2018 Advance deposit tax Section 27(2) [ Circular no. 71/45/2018-GST dated 26 Oct. 2018 ] A casual taxable person has to make an advance deposit of tax in an amount equivalent to his estimated net tax liability only and not gross tax liability for the period for which the registration is sought. Additional advance tax shall be given for the period of which the extension is sought which shall be equivalent to the estimated tax liability. Registration: A casual taxable person has to apply for registration at least five days prior to the commencement of business. There is no special form to register as a casual taxable person. The normal FORM GST REG-01 which is used by other taxable persons can be used for obtaining registration by casual taxable person also. A casual taxable person, before applying for registration, should declare his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner. The Permanent Account Number shall be validated online by the common portal from the database maintained by the Central Board of Direct Taxes. The mobile number declared shall be verified through a one-time password sent to the said mobile number; and the e-mail address shall be verified through a separate one-time password sent to the said e-mail address. On successful verification of the Permanent Account Number, mobile number and e-mail address, a temporary reference number shall be generated and communicated to the applicant on the said mobile number and e-mail address. Using this reference number generated, the applicant shall electronically submit an application in Part B of FORM GST REG-01 , duly signed or verified through electronic verification code, along with the documents specified in the said Form at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. The applicant will be given a temporary reference number by the Common Portal for making the mandatory advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. The registration certificate shall be issued electronically only after the said deposit appears in his electronic cash ledger. The amount deposited shall be credited to the electronic cash ledger of casual taxable person. On depositing the amount, an acknowledgement shall be issued electronically to the applicant in FORM GST REG-02. Initial validity of registration The casual taxable person can make taxable supplies only after the issuance of the certificate of registration. The certificate of registration shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier. Further extendable validity of registration In case the casual taxable person intends to extend the period of registration indicated in his application of registration, an application in FORM GST REG-11 shall be submitted electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, before the end of the validity of registration granted to him. The validity period of ninety days can be extended by a further period not exceeding ninety days. The extension will be allowed only on payment of the amount of an additional amount of tax equivalent to the estimated tax liability for the period for which the extension is sought. it is clarified in case of long running exhibition (for a period more than 180 days), the taxable person cannot be treated as a casual taxable person and such person would be required to obtain registration as a normal taxable person. Circular no. 71/45/2018-GST dated 26 Oct. 2018 Returns: The casual taxable person is required to furnish the following returns electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner, Furnishing details of outward supplies of goods or services [ Filling FORM GSTR-1 ] Every Casual taxable persons, required to furnish the details of outward supplies of goods or services or both effected during a tax period under section 37 , shall furnish such details in FORM GSTR-1 on or before the tenth day of the month succeeding the said tax period, electronically through the common portal, either directly or through a Facilitation Centre as may be notified by the Commissioner. Every casual taxable persons required to furnish return for every quarter under proviso to section 39(1) may furnish the details of such outward supplies of goods or services or both to a registered person, as he may consider necessary, for the first and second months of a quarter, up to a cumulative value of fifty lakh rupees in each of the months,- using invoice furnishing facility (hereafter in this notification referred to as the IFF ) electronically on the common portal, duly authenticated in the manner prescribed under rule 26 , from the 1st day of the month succeeding such month till the 13th day of the said month. The details of outward supplies furnished using the IFF, for the first and second months of a quarter, shall not be furnished in FORM GSTR-1 for the said quarter. The details of outward supplies of goods or services or both furnished using the IFF shall include the - Invoice wise details of inter-State and intra-State supplies made to the registered persons; Debit and credit notes, if any, issued during the month for such invoices issued previously. Discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act [Furnishing the FORM GSTR-3B ] (1) The casual taxable person shall furnish a return in FORM GSTR-3B , electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner, as specified under - If Casual taxable person turnover is more than 5 crore during the financial year or preceding financial year , or part thereof, on or before the 20th day of the month succeeding such month: If casual taxable person have turnover upto 5 crore during the financial year or preceding financial year, or part thereof, for the class of registered persons mentioned in column (2) of the Table given below, on or before the date mentioned in the corresponding entry in column (3) of the said Table, namely:- S. No. (1) Class of registered persons (2) Due Date (3) 1. Registered persons whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep. 22 nd day of the month succeeding such quarter. 2. Registered persons whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi. 24 th day of the month succeeding such quarter. (2) Every registered person required to furnish return, for discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or the provisions of this Chapter by debiting the electronic cash ledger or electronic credit ledger and include the details in the return in FORM GSTR-3B . No need to file FORM GSTR - 9 - There is no need to file Annual return filed by the casual taxable person. Refund by Casual taxable person: The casual taxable person is eligible for the refund of any balance of the advance tax deposited by him after adjusting his tax liability. The balance advance tax deposit can be refunded only after all the returns have been furnished, in respect of the entire period for which the certificate of registration was granted to him had remained in force. The refund relating to balance in the electronic cash ledger has to be made in serial no. 14 of the last FORM GSTR-3 return required to be furnished by him (instead of FORM GST RFD 01). (Read rule 89) Important point to be remember:- A casual taxable person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 , if he has not furnished the return in FORM GSTR-3B for the preceding month. A casual person, required to furnish return for every quarter under the proviso to section 39(1) , shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period. A casual taxable person, to whom an intimation has been issued , shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility for a subsequent tax period, unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid, as required under the provisions of rule 88C(2) .