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Concept of Casual Taxable Person under GST

Concept of Casual Taxable Person under GST

by Sanjeev Archak

In previous posts, we have discussed who is liable to get registered under GST. In this post, we shall examine the concept of ‘Casual Taxable Person under GST’.

Who is a Casual Taxable Person under GST?

Casual taxable person means 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.

Example 1: A person having a place of business in Bangalore providing services in Hyderabad (where he has no fixed place of business) will be treated as a casual taxable person in Hyderabad.

Example 2: An interior decorator registered in Delhi and is required to execute a project on site in Bangalore and is required to depute resources in Bangalore may opt to seek registration as a casual taxable person in Bangalore as he has no fixed place of business in Bangalore.

Registration for a Casual Taxable Person under GST

The GST law makes it compulsory for a casual taxable person to obtain GST registration irrespective of his turnover. Casual taxable persons are required to apply for registration five days prior to the commencement of business.

The registration certificate is valid for 90 days and can be extended up to another 90 days. It is important to note that at the time of registration an advance deposit of tax to the estimated tax liability for the period for which the registration is sought is also to be deposited.

It is important to note that at the time of registration an advance deposit of tax to the estimated tax liability for the period for which the registration is sought is also to be deposited.

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.

This provision also brings into view the process of claiming a refund if the tax deposited is more than tax liability. Further, in the absence of output tax in the state where the service has been rendered as a casual taxable person, input tax credit also cannot be claimed.

The facts of each case will determine whether or not it would be a case of an inter-state supply or one falling in the category of supply by a casual taxable person.

 

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