Deposit for GST Registration

All individuals involved in businesses and not-for-profits engaged in the supply of goods and services to persons or entities in India. GST registration can be broadly be classified into three different types, namely GST registration for regular taxpayers, GST registration for casual taxable persons and GST registration for non-resident taxable persons. Under the GST Act, casual taxable persons or non-resident taxable persons should mandatorily obtain GST registration, irrespective of aggregate annual turnover. In this article, let us look at the deposit requirement for those registering for GST as a casual taxable person or non-resident taxable person.

Amount of Deposit for GST Registration

All casual taxable persons and

non-resident taxable persons applying for GST registration are required to make an advance deposit of tax equal to the estimated tax liability of the taxpayer for the period for which the registration is sought. After depositing the GST payment in advance, the taxpayer shall receive the credit in the electronic cash ledger to use against payment of GST liability, fee, penalty or other charges. Further, all temporary GST registration for a casual taxable person shall detail the expiry date of registration. In case the taxpayer needs an extension of temporary GST registration, then additional tax must be deposited as per the amount of tax liability expected to get an extension of the GST registration. For example, if a casual taxable person estimates a GST liability of Rs.18 lakhs for a period of 2 months during the Diwali season, then the concerned individual shall deposit Rs.18 lakhs in advance while applying for GST registration. It is important to note that GST registration for casual taxable persons and non-resident taxable persons are provided for a period of less than 90 days or the period requested in the GST registration application. To lighten the process of GST registration for casual taxable persons and non-residents taxable persons, the authorized officer can extend the registration period for 90 days.

Paying Deposit for GST Registration

Casual Taxable Persons under GST

A casual taxable person under GST 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. An example of a casual taxable person under GST; firework shops set up during Diwali times or shops set up in temporary exhibitions.

Non-Resident Taxable Persons under GST

Non-resident taxable person means any person who occasionally undertakes transactions involving the supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

Regular Taxpayers

As per GST rules, no regular taxpayers shall pay any deposit for the advanced tax while applying for GST registration. However, after obtaining GST registration, all regular taxpayers would be required to f

ile monthly GST returns regularly or pay the penalty as per the GST Act. Penalty for late filing of GST returns is Rs.100 per day, with a maximum penalty of Rs.5000, per each instance of default.

Procedure for Paying Deposit for GST Registration

Upon filing a GST registration application for a casual taxable person or non-resident taxable person, the system generates a temporary reference number for making an advance deposit of tax into the electronic cash ledger. After the completion of the process for the advance tax payment, the portal shall generate an acknowledgement for the payment made. After the acknowledgement, the completes the GST registration. India Filings can help to

obtain GST Registration, talk to an India Filings Business Advisor today.

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Frequently Asked Questions

Common questions about GST Registration Deposit for Casual and Non.

The deposit for GST registration is an advance payment of the estimated tax liability that casual taxable persons and non-resident taxable persons must make. This deposit is required to obtain GST registration and the amount is credited to the electronic cash ledger, which can be used to pay GST, fees, penalties, or other charges.

Casual taxable persons and non-resident taxable persons are required to pay the deposit for GST registration, irrespective of their aggregate annual turnover. Regular taxpayers are not required to pay this deposit.

The deposit amount is equal to the estimated tax liability of the taxpayer for the period for which the registration is sought. For example, if a casual taxable person estimates a GST liability of Rs. 18 lakhs for 2 months, they must deposit Rs. 18 lakhs as the deposit.

If a casual taxable person or non-resident taxable person needs to extend their temporary GST registration beyond the initial period, they must deposit additional tax based on their expected tax liability for the extended period.

Yes, the authorized officer can extend the registration period for casual taxable persons and non-resident taxable persons for up to 90 days.

A casual taxable person is someone who occasionally undertakes transactions involving the supply of goods or services in a state or union territory where they do not have a fixed place of business. Examples include firework shops set up during Diwali or shops at temporary exhibitions.

A non-resident taxable person is someone who occasionally undertakes transactions involving the supply of goods or services in India but does not have a fixed place of business or residence in the country.

Yes, regular taxpayers who fail to file GST returns on time are subject to a penalty of Rs. 100 per day, with a maximum penalty of Rs. 5,000 per instance of default.

After filing the GST registration application, the system generates a temporary reference number. The deposit can be paid through the electronic cash ledger, and an acknowledgement is generated upon successful payment.

Yes, the article mentions that India Filings can help obtain GST registration, and readers are advised to talk to an India Filings Business Advisor for assistance.