Casual Registration Under GST

CASUAL TAXABLE PERSON

As per the law, a ‘Casual Taxable Person’ is 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.

Section 24 of the GST law states certain categories of taxable person who are not mandated by the threshold limit of Rs. 20lakh/10 lakh. It includes ‘Casual Taxable Person’ among such entities.

Thus, every Casual Taxable Person has to mandatory register under the GST law, irrespective of the mentioned turnover limit.

Businesses that are required to supply goods or service or both in a particular state (that is not a principal place of business) & are not registered in that state can opt to register as a ‘Casual Taxable Person’.

There may be infrequent transaction/event in another state & the buyer of goods or services, or both, intends to claim input tax credit from such a transaction.

When a business opts for normal registration, in such cases, they have to file nil returns & adhere to all compliances that are required of a normally registered taxpayer. Thus, for all such infrequent or one-time transactions, the supplier can obtain registration as a Casual Taxable Person in that state and pay the tax liability in advance on presumption basis. This will make the buyer eligible to claim input tax credit without increasing the burden of compliance.

The following provisions must be kept in mind while operating as a Casual Taxable Person:

• Certificate of registration issued to a casual taxable person is valid for a period of 90 days & the designated officer can further extend this period by 90 days if a reasonable cause is provided by the taxable person.

• A casual taxable person can make taxable supply only after obtaining the registration certificate.

• He is required to make an advance tax deposit in an amount equivalent to the estimated tax liability for the period for which the registration is sought.

• The amount deposited by a casual taxable person will be credited into the electronic cash ledger of the person and will subsequently be adjusted against the tax liability.

For example,

A jeweller has his showroom in Mumbai but participates in an exhibition cum sale in Delhi, then he can opt for Casual Registration under GST.

But if he sends a consignment from his Mumbai showroom to another state, then it would be treated as interstate sales & hence, would not require the Casual registration under GST.