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Casual Taxable Person Under GST: Temporary Registrations in States to reduce compliance burdens


Introductions

An individual who occasionally provides taxable goods or services in a taxable zone without a regular place of business is known as a Casual Taxable Person (CTP). This person can act as a principal, an agent, or in any other role necessary to support the firm's expansion to deliver goods or services.


Mrs. Shanti offers event management consulting services out of her business location in Mumbai. She does not have a business facility in Chennai, but she also provides the same services there. Therefore, Mrs. Shanti must register as a casual taxable person before offering consulting services in Chennai.

The term "person" encompasses a variety of entities, such as private people, Hindu Undivided Families, corporations (including government corporations), partnerships with limited liability, associations of individuals, bodies of individuals, cooperative societies, and municipal governments.


The term "principal place of business" refers to the precise location of the company that the certificate of registration designates as its major place of business.


Registration of Casual Taxable

When an individual is a supplier and their total revenue for the fiscal year exceeds the threshold of 20 lac rupees, they become liable to register under GST, regardless of their turnover in a specific state and thus they are required to obtain the GST registration.

A temporary registration for Casual Taxable Persons that is only good for ninety days is required of a CTP in the State from where he wishes to supply as a casual taxable person.

A casual taxable person cannot exercise the option to pay tax under a composition levy. He has to apply for registration at least five days before commencing his business in India.

It is required to to make the advance GST deposit (based on an estimate of tax liability), a CTP is needed. Using our earlier example, let's say Mrs Shanti assesses the value of her taxable services at Rs. 210000. To get temporary registration, she must submit an advance of Rs. 18,000 (18% of Rs. 210,000).


Extension 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.

The validity period of ninety days might be extended by a further period of ninety days, but only if an additional amount of tax equal to the projected tax due for the time requested is paid.


Return Filing for Casual Taxable Persons

A casual taxable person as like others have to file following returns :

(a) FORM GSTR-1, which records outward supplies of goods or services.

(b) FORM GSTR-3B, which summarizes supplies along with tax payments.

However, a casual taxable person is not required to file any annual return as a normal registered taxpayer.


Refund by Casual Tax Payer

A casual taxable person is entitled to a refund of advance tax deposited by them after adjusting their tax liability. The balance advance tax deposit can only be refunded after all returns have been filed for the entire period during which the certificate of registration was granted.


What If Exhibitions are long-running like more than 180 Days

When events/exhibitions are long-running exhibitions beyond 180 days, the person has to obtain normal registration and cannot obtain registration as a casual taxable person. Copy of the allotment letter permitting him to use the premises for the exhibition is considered proof of Place of Business. Once the exhibition is over, the registration can be surrendered.


Let's Understand Who Needs Casual Taxable Registrations in Practical Scenarios

Mostly Event Management Companies, Advertisers and the persons who attend the exhibitions and events and sell their products via display in said events are required to obtain the Casual Taxable Registration.


A person providing consultancy service from Mumbai to a client in Delhi is not required to obtain separate registration of Delhi as in this case, it will levy IGST on tax invoice.


Learn other concepts of GST here :

All other topics on GST you can find Here

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