GST is the indirect tax in India. It is the current tax system and every taxpayer as per eligibility is required to have GST Registration in India. There are multiple criteria such as turnover, business activity, or transaction that decide who is liable to have GST Registration. One such criterion for GST Registration is Casual Taxpayer. Casual GST Registration is the type of GST Registration that confuses many taxpayers. Thus, In this article, we will get to know all about Casual GST Registration.
Who is a Casual Taxpayer?
As per Section 2(20) of the CGST Act, 2017 a casual taxpayer is a person who occasionally transacts involving a supply of goods or services or both. Furthermore, a casual taxable person or a casual taxpayer as per GST Rules and Regulations is the person who doesn’t have a fixed place of business in particular state or union territories of India.
For example, an individual or a firm selling their goods in other state fairs or exhibitions is a casual taxable person. In this case, he/she needs to apply for casual GST and do GST return filing to conduct their business.
What is Casual GST Registration?
A Casual GST Registration is a mandatory registration for Casual Taxable Persons. It is mandatory for every casual taxpayer and doesn’t have any criteria of annual turnover.
Furthermore, you must apply for Casual GST in India 5 days prior to commencement of business. Under Casual GST Registration, the taxpayer doesn’t have a specific principal place of business and therefore it is not specified in the certificate of registration.
You must also note that Casual GST doesn’t permit registration under the composition scheme. In addition, the Casual GST Reg in India is valid only for a period of 90 days in the state where he or she seeks the registration.
The CTP(Casual Tax Payer) also needs to make the advance payment or deposit of GST using form GST REF-01.
GST Return Filing for Casual GST Registration
Casual Taxpayers also have to do GST Return filing similar to regular taxpayers. However, they have an exemption from filing annual returns. The important information about GST Return Filing for Casual GST is as follows.
- Form GSTR-1 specifies details of outward supplies of goods or services to be furnished on or before the 11th of the following month.
- Form GSTR-3B specifies a summary of Input Tax Credit, purchases, and tax liability to be furnished on or before the 20th of the following month.
- If availing QRMP scheme, the taxpayer has to furnish IFF/GSTR-1 and GSTR-3B on a quarterly basis.
Other Information about Casual GST Registration
- Casual taxpayers pay their taxes in advance.
The casual taxpayer must deposit a sum equal to his or her expected tax burden in advance. After submitting the funds, the applicant should get an online receipt in the form GST REG 02. Only if the certificate of registration is issued will the casual taxable person be permitted to make a taxable supply.
- The registration certificate’s validity
The registration certificate for a casual taxable person is valid for the term indicated by the taxpayers or for ninety days from the registration’s date of issue, whichever comes first. By depositing an advance payment of the tax amount equal to the expected tax due, the taxpayers can submit a request to extend the date on the issued certificate.
- Refund for a non-regular or casual taxpayer
Casual Taxpayers are entitled to reimbursement of any amount deposited exceeding the tax liability. The government repays after the taxpayer does GST Return Filing for the Registration period. Form GST RFD-01, under the category “Refund of excess balance in the electronic cash ledger,” is used to request a refund of the amount exceeding the amount payable in the electronic cash ledger.
- Document Requirement for Casual GST Registration
The paperwork/information needed for a casual GST registration is the same as for regular registration, with the exception that there may be additional documentation needed for the place of business where the business will be conducted, as the location may be transitory in this situation.
Document required for Casual GST Registration in India
- Business Name
- Mobile Number and Email Address.
- Previous GST Registration details if any.
- Company Incorporation Documents
- Basic Details of Directors such as Aadhar Card, Photo, etc.
- Bank Details
- Details about the Principal Place of Business address, as well as utility bills such as an electric bill, a property tax receipt, or the address where the business will be conducted.
- Nature of Business
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