As a CTP, securing temporary GST registration is essential before initiating any business activities in the designated state or union territory. To fulfill your anticipated tax obligations, it’s necessary to make an advance tax deposit based on your estimated tax liability for the registration period. It’s crucial to note that the GST composition scheme, which simplifies tax compliance, is not available for CTPs. By grasping these foundational aspects, you can ensure a seamless and compliant business venture as a Casual Taxable Person under GST. This guide offers a concise overview of the essential requirements and responsibilities linked to CTP registration.
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.
What are the Prerequisites for CTP 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.
Regular Taxable Persons vs Casual Taxable Persons
Persons classified as the regular taxable person must obtain for GST registration as regular taxable person. These individuals shall come under the regular person’s tax and not in the category of casual taxable person or non-resident taxable person. Hence, regular taxable persons would be someone with a fixed place of business located within India.
Unless a regular taxpayer is enrolled under the GST composition scheme, the taxpayer would be required to file monthly GST returns, maintain accounts as per GST Act, maintain a fixed place of business and comply with GST regulations.
Casual taxable persons would find it hard to maintain a fixed place of business or file monthly GST returns continuously, as their business would be seasonal in nature with no fixed place of business. To accommodate the unique requirements of such taxpayers, special provisions have been provided under the GST Act for registration of casual taxable person.
Registration of a Casual Taxable Person
The liability to register under GST arises when the person is a supplier and the aggregate turnover in the financial year is above the threshold limit of 20 lac rupees. However, there are certain categories of suppliers who are required to get compulsory registration irrespective of their turnover.
The threshold limit of 20 lac rupees is not applicable to them. One such supplier would be a Casual Taxable Person (hereafter referred as CTP). A Casual Taxable person cannot opt for Composition Scheme. A CTP has to obtain a temporary registration which is valid for a maximum period of 90 days in the State from where he seeks to supply as a casual taxable person. A CTP is required to make the advance deposit of GST (based on an estimation of tax liability).
Let’s take our previous example, Say Ms priya estimates his taxable services at Rs. 100000. she is required to make an advance deposit of Rs.18000 (18% of Rs.100000) to obtain temporary registration.
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.
- Part A:
- 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.
Returns to be furnished
| FORM | DUE DATE |
| FORM GSTR-1 ( Details of outward supplies of goods or services) | On or before the 11th of the following month |
| FORM GSTR-3B (Summary of ITC, purchases and tax liability) | On or before the 20th of the following month |
However, if a CTP has opted for the QRMP scheme, he has to file IFF/GSTR-1 and GSTR-3B on a quarterly basis.
A casual tax person is not required to file an annual return as required by a normally registered taxpayer.
Validity Period of Casual Taxable Person Registration
- 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.
FAQs
When is registration as a casual taxable person required under GST?
Registration as a casual taxable person is required when an individual or business undertakes occasional taxable supplies in a place where they don’t have a fixed business location or registration.
What is a casual taxable person under GST?
A casual taxable person is someone who occasionally undertakes transactions involving the supply of goods or services in a jurisdiction where they don’t have a regular place of business.
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