Casual Taxable Person in GST


Date: 25 Oct 2022

Who Is A Casual Taxable Person Under Gst?

This article will deal with various aspects of the concept of a casual taxable person, a provision in the goods and services tax introduced by the state in 2016. It delves into the common questions that often arise regarding the concept, such as differences between Casual Taxable Person and a regular taxable person, registration, etc. 

Who is a casual taxable person?

A casual taxable person buys, sells, supplies and distributes taxable services in a territory where he does not have a place of business. It is applicable whether the person acts as a principal, agent or in any capacity to further or continue the business. Registration is mandatory (there is no minimum threshold) if an individual wishes to partake in the industry. The income tax department should be informed at least five days before the commencement of the business in the said territory. For example, Mr Arun, who sells colors during Holi, has a seasonal business and does not have a fixed place of business, so that he can be referred to as a casual taxable person.


How is a casual taxable person different from a regular taxable person?

A regular taxable person refers to an individual with a fixed business place in a taxable territory, such as an apparel store where products and companies would be open throughout the year. In contrast, for a casual taxable person, the place of business is occasional or seasonal, where neither the industry nor the product is perennially available.


Registration for a Casual Taxable Person 

A business or an individual must register under GST if the turnover in one financial year is more than twenty lakh rupees; however, certain elements are exempt from this rule. One such entity is the casual taxable person. Instead, a Casual Taxable Person is expected to obtain a temporary registration whose validity is ninety days in the preferred place of business via an advanced GST deposit based on estimated tax liability. For example- Mr Aryan estimates his tax liability will amount to 3,00,000. To obtain a temporary registration, his deposit would be 54000 (18% of 3,00,000). The process does not differ much from the regular registration for GST. One has to submit GST REG-01, which other taxable persons use. 

-The process is shown in the image below



Extension of GST Registration 

For an extension on the registration, one has to apply by filling the FORM GST REG-11 before the validity of the said resignation expires. The extension is only granted if additional tax liability for the extended period is deposited. The extension is not more than ninety days. 


Returns to be furnished by a Casual Taxable Person 

Unlike normal taxpayers a Casual Taxable Person is not liable to file for an annual return. The following are the returns that need to be furnished by a Casual Taxable Person:

  • FORM GSTR-1 which includes details regarding outward supplies of goods and services. The form should be filed on or before the 11 of the following month.

  • FORM GSTR-2 details inward supplies of a particular. It is to be filed on or before the 20 of the following month.

  • FORM GSTR-3 encapsulates details of a particular month's purchases and sales. It is to be filed on or before the 20 of the following month. 

  • FORM GSTR- 3B is a summary of the purchases and sales of a particular month. It is to be filed on or before the 20 of the following month. 


Refunds by a casual taxable person 

A casual taxpayer is entitled to refund any surplus cash remaining after paying the tax bill. A casual taxpayer is entitled to refund any surplus cash after paying the tax bill. The amount is repaid only when necessary returns have been furnished for the valid registration period. It is possible to claim it by submitting the FORM GST RFD-01 under the provision for a refund of the excess balance in the electronic cash ledger.