Registration of casual taxable person

[Ravikumar Doddi]

Sir,

Applicant holding GST registration in Telangana he want to do exhibition sales in Bangalore for a period 3 days, in such a situation is he liable to take a separate casual taxable person registration in Bangalore for a period of 3 days in a state of Karnataka or on Telangana GST can he do business in Bangalore exhibition. if he takes casual taxable person registration in Karantaka he has to comply with all returns formalities, GSTR 3B, GST1 and to claim for refund. over a period of one year he will participate in exhibition sales more than 10-15 times in 5 states. so is he liable to take 5 registration in 5 states, So it will become more burden to him in return compliance in each state rather than doing business, kindly give your reply with supporting sections and rules

[KASTURI SETHI]

For exhibition purpose goods can be sent on delivery challan.

[PAWAN KUMAR]

Dear sir,

As per my view, sales is a supply and any supplier intending supply in a state, it is required to obtain registration in that state. Therefore in all five States, registration will have to be taken.

[Praveen Nair]

Dear Ravikumar

A casual taxable person is a person who occasionally undertakes transactions involving supply of goods or services in a state or a union territory where he has no fixed place of business. He may work in such state or union territory as a principal, agent or in any other capacity.

The activity performed by the aforesaid applicant in the query is Supplying Goods at the Exhibition counter.

All such persons having some temporary work or assignment in state or union territory (not being their principal place of business and not being already registered there), should mandatorily get registered as Casual Taxable Person in such state or union territory.

There is no threshold limit for registration.

Refer Section 24 of the CGST Act, 2017 - Compulsory registration in certain cases.

Registration / Returns

• Registration should be done in Form Reg-01, used for normal registration. Returns are to be filed like GSTR 1, 2 & 3.
• Casual Taxable Person is not required to file Annual Return as required by the normal registered taxpayer.

Refund:

In case the amount of advance tax deposited by Casual Taxable Person at the time of applying for registration exceeds the amount of his actual tax liability, then he shall be given refund of such excess amount of tax paid. But in order to claim such refund, he must file all the returns in respect of the time period for which registration is granted.

[Alkesh Jani]

Sir, Some important point for casual tax payer is given below, however, the views expressed by the experts may also be considered.

“Casual taxable person” means a person who occasionally undertakes transactions involving 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.

• A casual taxable person (other than those making supply of specified handicraft goods) making taxable supply in India has to compulsorily take registration.

• There is no threshold limit for registration.

• A casual taxable person cannot exercise the option to pay tax under composition levy.

• He has to apply for registration at least five days prior to commencing his business in India.

• A casual taxable person has to make an advance deposit of tax in an amount equivalent to his estimated tax liability for the period for which the registration is sought.

• The normal FORM GST REG-01which is used by other taxable persons can be used for obtaining registration by casual taxable person also.

• The applicant will be given a temporary reference number by the Common Portal for making the mandatory advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.
• The registration certificate shall be issued electronically only after the said deposit appears in his electronic cash ledger.

• The casual taxable person can make taxable supplies only after the issuance of the certificate of registration.
• The certificate of registration shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.

• In case the casual taxable person intends to extend the period of registration indicated in his application of registration, an application in FORM GST REG-11shall be submitted before the end of the validity of registration granted to him.
• The validity period of ninety days can be extended by a further period not exceeding ninety days. The extension will be allowed only on payment of the amount of an additional amount of tax equivalent to the estimated tax liability for the period for which the extension is sought.

• Presently only FORM GSTR-1and FORM GSTR-3B return is required to be filed.

AI Summary

Casual taxable person registration required for out of state supplies; advance tax deposit and specified GST returns compulsory. A supplier without a fixed place of business who makes taxable supplies at a temporary venue in another state must obtain separate casual taxable person registration in that state, with no threshold exemption. Registration uses the normal registration form, requires an advance deposit of estimated tax before the certificate is issued, and prohibits composition levy. The temporary certificate is valid for the specified short period (with possible extension on additional advance deposit). Casual registrants must file the prescribed periodic returns and may claim refund of any excess advance after filing all returns for the registration period.