Casual GST Registration: Registration by Casual Taxable Person

Who is casual taxable person?

A casual taxable individual is someone who does not have a fixed place of business but occasionally sells goods or services in events like fairs, exhibitions, or festivals. They are different from regular taxpayers because their business activities are not continuous or regular. They have to follow the GST rules when they do business in India.

Here are a few examples of a casual taxable person -

• A seasonal handicrafts vendor: A Gujarati handicraft vendor frequently participates in seasonal marketplaces across various states. By registering as a Casual Taxable Person (CTP), the vendor was able to legally sell goods in other states without setting up a permanent base, significantly boosting sales during peak seasons. This case study underscores the importance of timely CTP registration before seasonal demand surges to ensure compliance and capitalize on high market potential.
• An IT Contractor: An IT contractor accepted a three-month assignment in a state where they had no permanent office. By registering as a Casual Taxable Person (CTP), they optimized tax liabilities through input tax credits, ensured smooth project management, and complied with local GST regulations. This experience highlighted the importance of accurately estimating taxes upfront to avoid financial surprises at the end of the project.

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What are the Prerequisites for Casual Taxable Person Registration?

• Permanent Account Number (PAN):
  • All Casual Taxable Persons (CTPs) must possess a valid PAN issued by the Income Tax Department.
  • This PAN will be used for identification and verification purposes during the registration process.
• Mobile Number and Email Address:
  • CTPS must provide a valid mobile number and email address during registration.
  • These will be used for communication purposes, including receiving updates and notifications from the GST authorities.
  • Ensure the provided information is accurate and accessible for timely updates.
• State/Union Territory for Registration:
  • CTPS must determine the State/Union Territory where they will be primarily conducting their business operations.
  • This information is crucial as the registration process and applicable tax rates will vary based on the chosen location.
  • Carefully consider the location where you'll be conducting the majority of your business activities.
• Additional Notes:
  • All information provided in the course of registration must be accurate and complete.
  • Ensure you have all the required documents readily available before initiating the registration process.
  • Familiarize yourself with the relevant GST rules and regulations before registering.

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Process for Casual GST Registration

Timeline: Applications for Casual Taxable Person (CTP) registration must be submitted at least five days prior to commencing business operations. This allows sufficient time for processing and approval before the business begins.

• Online Application through GST Common Portal:
  • Visit the official GST portal (https://www.gst.gov.in/).
  • Go to the 'Services' tab and choose 'Registration' > 'New Registration.'
• Form GST REG-01: Details required
  • Part A:
    • Personal Information: This includes details such as name, father's name, date of birth, etc.
    • PAN: Provide the valid PAN number issued by the Income Tax Department.
    • Contact Details: Enter a valid mobile number and email address for communication purposes.
  • Part B:
    • Business Details: This section requires information about the nature of your business, trade name, address, etc.
    • Estimated Turnover: Provide an estimated value of your taxable supplies for the desired registration period.
    • Validity Period: Specify the desired duration of your registration (maximum of 90 days).
  • Part C:
    • Additional Information: This section is optional and allows you to provide any relevant information not covered elsewhere.
• Upload Required Documents:
  • Attach necessary documents, including PAN card, address proof (electricity bill, rent agreement, etc.), and any other documents required by the authorities.
• Payment of Advance Tax:
  • CTP's must deposit an advance tax amount equivalent to their estimated tax liability for the chosen registration period.
  • This payment can be made online through various authorized payment channels available on the GST portal.
• Verification and Approval:
  • Once the application is submitted, the GST authorities will verify the information and documents provided.
  • This verification process may involve contacting the applicant for additional information or clarifications.
  • Upon successful verification and approval, a temporary registration certificate will be issued.
• Granting of Temporary Registration Certificate:
  • The temporary registration certificate allows the CTP to commence business operations and collect and deposit GST as per the applicable regulations.
  • This certificate is valid for a specified period (maximum of 90 days) and can be extended upon request.

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Validity Period of Casual Taxable Person Registration

The validity period of a Casual Taxable Person (CTP) registration is limited. Here's a breakdown of the key points:

• Maximum Duration:
  • A CTP registration is valid for a maximum of 90 days from the effective date of registration.
  • This means the CTP can conduct taxable business activities and comply with GST regulations for this duration.
• Option to Extend:
  • If needed, CTPS can apply for an extension of their registration period before the existing validity expires.
  • This extension request must be submitted in Form GST REG-11 through the GST Common Portal.
  • The maximum extension period is another 90 days, exceeding which a CTP will need to re-register.

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Returns to be Furnished by a Casual Taxable Person

Under GST, a Casual Taxable Person must file the following returns:

• Form GSTR-1: Details of outward supplies.
• Form GSTR-3B: Summary of GST liabilities and payments.

These returns must be filed monthly. However, if the Casual Taxable Person opts for the GST QRMP Scheme (Quarterly Return with Monthly Payment), they need to file the IFF in GST/GSTR-1 and GSTR-3B quarterly.

Note: If there's a possibility that your business will exceed the 90-day limit, apply for the extension well in advance to ensure smooth operations.

Filing a GST return and being compliant with the GST laws can be challenging, especially for those new to the process. To ensure accuracy and avoid mistakes, it's advisable to consult professionals. Tax2win’s experts are ready to help with GST filing and answer all your GST questions. Book a tax expert today!

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