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Casual Taxable Persons: Documents Required, Process & Exemption

A taxable person under GST is anyone who is registered under GST or required to be registered under GST. Various criteria’s like turnover, business activity or transaction have been specified in the GST Act, which details persons liable to be registered under GST. Further, any person having registration under Service Tax, VAT or Central Excise on the date of GST coming into force will automatically be considered a taxable person under GST.

Who is a casual taxable person under GST registration?

Casual taxable persons or occasional taxpayers are given special treatment under GST.

The Goods and Service Tax Act defines a casual taxable person as a person who occasionally undertakes transactions that involve the supply of goods or services or both.

Hence, individuals running temporary businesses in fairs or exhibitions or seasonal businesses will need to get casual taxable person GST registration.

Casual taxable person GST registration is necessary irrespective of the annual turnover, and the process must be initiated at least five days before the business undertaking. GST registration application for casual taxable persons can be made using FORM GST REG-01.

Documents required to be submitted by the applicant

What documents should be submitted by the Casual taxpayer?

  • Scanned copy of PAN (Indian National)
  • Scanned copy of Passport (for Foreign Nationals and NRIs)
  • Scanned copy of Voter’s Id/ Passport/ Driver’s license
  • Scanned Passport sized photograph.
  • Mobile Number
  • Email

Process of GST Registration for Casual Taxable Person

Similar to any other individual, GST registration is mandatory for casual taxable persons. GST registration is mandatory for all casual taxpayers. There is no threshold limit for registering as a casual taxpayer. However, the casual taxpayer cannot exercise the option of a composition scheme.

Advance payment of the tax by the casual taxpayer

The casual taxpayer has to make an advance deposit for the amount equivalent to the estimated tax liability. On depositing the amount, an acknowledgment should be electronic to the applicant in the Form GST REG 02. The casual taxable person will be able to make taxable supplies only after the issuance of the certificate of registration.

Returns filing

Similar to the regular taxpayer, a casual taxpayer is required to file the monthly/ quarterly return Form- GSTR 1 and GSTR - 3B.

The validity of the registration certificate

The registration certificate as a casual taxable person is valid for the period specified by the taxpayer or 90 days from the effective day of the registration, whichever is earlier. The taxpayer can seek an extension on the given certificate by making an advance deposit of the tax amount that is equivalent to the estimated tax liability ( that is liable for the extended period).

Refund of the advance deposited

The casual taxable person is eligible for the refund of any balance of the advance tax deposited by him after adjusting his tax liability.

The balance advance tax can be refunded only after all the returns are filed.

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Who is exempted from casual taxable person 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 particular category of the 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 essential 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 appeals like 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 primarily by hand even though some machinery may be used in the process.

GST Registration Validity Extension

Casual Taxpayer or Non-Resident Taxpayer may apply for the extension of the registration period for a maximum of 90 days. The validity of the registration of a Casual/Non Resident Taxpayer can be extended only once.

Pre-conditions for Extension

The pre-conditions for applying for an extension of the registration period by a Casual/Non Resident Taxpayer are:

  • An applicant who has a valid and active GSTIN having the type of registration as “Casual” or “Non-resident” Taxable Person
  • Prepare the extension application before the expiry of the validity of registration granted earlier.
  • The taxpayer has to pay the amount in advance against the Estimated Tax Liability, for the period for which the extended registration is sought for, in his Electronic Cash Ledger.
  • The taxpayer has furnished all returns due till the date of filing extension.

Online Application Procedure

Casual Taxable Persons or Non-Resident Taxpayers can follow the below steps to apply for GST registration validity extension:

Visit GST Portal

Step 1: Firstly, the taxpayers have to visit the Goods and Services Tax portal for the Extension Registration.

Step-1

Step 2: Click on the ‘Login’ button to access the username and password page.

Step-2

Step 3: Enter the correct ‘Username’ and ‘Password’ credentials along with the captcha in the required field and click ‘login’.

Step 4: Click on the Application for Extension of Registration period by Casual/ Non-Resident Taxable person link under the services tab that is visible on the home page.

Step 5: The Extension of Registration Period form with various tabs is displayed. There are two tabs as Business Details and Verification. Click each tab to enter the details.

Step-5

Provide Business Details

Step 6: The Business Details tab displays the information for the registration of the registration period.

  • Select the period for which requires an extension for using the calendar.
  • In the Turnover Details section, enter the estimated turnover and Net Tax Liability for the extended period.
  • Click on the generate challan button to pay the estimated tax liability.
Step-6

The user could create multiple challans for payment of advance tax if the payment transaction failed using the challan created earlier.

Step 7: Once the payment is done, it will display the payment details.

Step 8: Click the “Save and Continue” button. A blue tick will appear on the Business Details section indicating the completion of the business details.

Verification Details

Step 9: This verification page displays the details of the verification for authentication of the details submitted in the form.

Step-9
  • Select the Verification checkbox.
  • In the Name of Authorized Signatory list, select the name of the authorised signatory.
  • In the Place field, enter the place where the form is filed.
  • Click the Submit with DSC or Submit with EVC button.

In Case of DSC:

  • Click the Submit with DSC button.
  • Then click the Proceed button.
  • Select the certificate and then click the “sign” button.
In Case of DSC

In Case of EVC:

  • Click the Submit with EVC button.
  • Enter the OTP that is sent to an email address and mobile number of the Authorized Signatory registered at the GST Portal and to validate OTP, click the Validate OTP button.
In Case of EVC

Step 10: The success message will be displayed, and the acknowledgement will be sent for completion in the next 15 minutes on the registered e-mail address and mobile phone number. Application Reference Number (ARN) receipt is sent on the e-mail address and mobile phone number.

Step-10

The list of specified items are as under

Sr. No. Items HSN
1 Leather articles 4201, 4202 and 4203
2 Carved wood products 4415, 4416, 4419 and 4420
3 Woodturning and lacquerware 4421
4 Bamboo products 46
5 Grass, leaf/reed/fiber products, mats, pouches, wallets 4601 and 4602
6 Paper mache articles 4823
7 Textile (handloom products) Including 50, 58, 62 and 63
8 Textiles hand printing 50, 52 and 54
9 Zari thread 5605
10 Carpet, rugs, and durries 57
11 Textiles hand embroidery 58
12 Theatre costumes 61, 62 and 63
13 Coir products 5705 and 9404
14 Leather footwear 6403 and 6405
15 Carved stone products 6802
16 Stones inlay work 68
17 Pottery and clay products which include terracotta 6901, 6909, 6911, 6912, 6913 and 6914
18 Metal table and kitchenware 7418
19 Metal statues, images or statues, vases, urns, and crosses of the types used for the decoration of metals of chapter 73 and chapter 74 8306
20 Metal Bidriware 8306
21 Musical instruments 92
22 Horn and bone products 96
23 Conch shell crafts 96
24 Bamboo furniture, cane/Rattan furniture 94
25 Dolls and toys 9503
26 Folk paintings, Madhubani, Patchitra, Rajasthani miniature 97

Conditions for Claiming Exemption

The exemption is available only if the person is availing the benefit of notification no. 03/2018 – integrated tax dated 22nd October 2018;

The total aggregate value of such supplies, to be computed on all India basis, should not be more than the amount of aggregate turnover above which the supplier is liable to be registered in the State or Union Territory; and

A person is required to obtain PAN (i.e., Permanent Account Number), and it is also necessary to generate an E-way bill following rule 138 of the Central Goods and Service Tax Rules, 2017.

Regular Tax Payers v/s Casual Tax Payers

Regular Tax Payers Casual Tax Payers
Is registered under GST and not classifiable as a casual taxable person or a non-resident taxable person A casual taxable person is someone who carries out business occasionally as a principal-agent or any agent capacity.
A regular taxable person has a fixed location of the business within India. The place of business is not fixed as it would be seasonal.
Can register as under composition scheme Cannot register under composition scheme

Frequently asked questions

Can a Casual Taxable Person opt for a composition scheme under GST?

Casual Taxable Person cannot opt for composition.

When should an individual apply for a Registration as a Casual Taxable Person?

An application for registering as a Casual Taxable Person at least five days before commencing the business.

What is the validity of Registration for casual taxpayers?

The Registration certificate issued to a casual taxable person shall be valid for the period specified in the application for registration or ninety days from the effective registration date, whichever is earlier.

Can I extend my Registration as a Casual Taxable Person?

Yes, the Registration as a Casual Taxable Person can be extended, once for an additional period of 90 days, if an application for the extension of Registration before the expiry of the initial period.

I have already extended my initial Registration once and cannot extend it a second time as per prevailing laws. What do I do if my extension is about to expire and my business has not concluded?

In such a case, one can obtain Registration as a normal taxpayer in the concerned state.

Can a Casual Taxable Person take multiple registrations in a State?

If a Casual taxable person has multiple business verticals within one state, the Casual taxable person can apply for multiple registrations within the state.

How to register as a casual taxable person under GST?

A casual taxable person has to declare the PAN, mobile, and file Form in GST REG-01 on the common portal directly or through a facilitation center that is notified by the government.

What is the difference between a casual taxable person and a normal taxable person?

A normal taxable person is every person who is registered under GST law whereas a casual taxable person is a person who undertakes business transactions casually and has no fixed principal place of business.

Is it possible for a casual taxable person to claim the Input tax credit?

A Casual taxable person can avail of the Input tax credit concerning the goods and services or both.

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Last updated: July 06, 2021

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