Casual taxable persons have been provided special treatment under GST. The GST Act defines as a casual taxable person as a person who occasionally undertakes transactions involving the 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. Hence, persons running temporary businesses in fairs or exhibitions or seasonal businesses would fall under casual taxable persons under GST.
A regular taxable person would be someone who is required to be registered under GST and not classifiable
as a casual taxable person or non-resident taxable person.
Hence, regular taxable persons would be someone with a fixed place of business located within India.
Unless a regular taxpayer is enrolled under the GST composition scheme, the taxpayer would be required to
file monthly GST returns,
maintain accounts as per GST Act, maintain a fixed place of business and comply with GST regulations.
Casual taxable persons would find it hard to maintain a fixed place of business or file monthly GST returns
continuously, as their business would be seasonal in nature with no fixed place of business. To accommodate the
unique requirements of such
taxpayers special provisions have been provided under the GST Act for registration of casual taxable persons.
All persons who are classified as casual taxable persons are mandatorily required to obtain GST registration, irrespective of the annual aggregate turnover. Further, the application for GST registration for a casual taxable person must be made at least 5 days prior to the commencement of business. GST registration application for casual taxable persons can be made using FORM GST REG-01.
Unlike regular taxpayers, casual taxable persons are required to deposit tax in advance for GST registration. The amount of tax to be deposited would be equal to the expected tax liability during the validity period of GST registration. Hence on applying for GST registration, a temporary reference number is generated for payment of GST deposit. On paying the GST deposit, the electronic cash ledger of the taxpayer is credited, and GST registration certificate is released. (Know more about amount of deposit required for GST registration)
The validity of GST registration for a casual taxable person is the validity period specified in the GST registration application or 90 days from the date of registration, whichever is earlier. The sample GST registration certificate below shows validity period being specified only for casual taxable persons and non-resident taxable persons under GST.
In case a casual taxable person needs an extension of the validity period mentioned in the GST registration certificate, then FORM GST REG-11 must be submitted. Along with the request for extension of the validity period, advance GST deposit must also be made by the taxpayer based on the expected tax liability. If the officer verifying the application is satisfied and advance GST deposit is made, the GST registration can be extended by up to another 90 days.
A certain casual taxable person is exempted from obtaining the GST Registration. Exemption from GST registration,
for a casual taxable person, has been provided vide notification no. 56/2018 – Central tax dated 23rd October 2018.
The below-mentioned
list provides the special category of casual taxable person who is being exempted from obtaining the GST registration –
* A casual taxable person who is being engaged in making inter-state supplies of handicraft goods.
However, the basic condition for claiming the exemption is that the handicraft goods should have
been made by hand (even though some tools or machinery may also have been used in the process).
Further such handicraft goods should be graced with visual appeal in the nature of ornamentation
or in-lay work or some similar work of a substantial nature, possess distinctive features, which can be aesthetic,
artistic, ethnic or culturally attached and are amply different from mechanically produced goods of similar utility; and
* A casual taxable person who is engaged in making inter-state supplies of specified items, when such items are made
by the craftsmen largely by hand even though some machinery may be used in the process.
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