Copyright © 2021 Absolute Compliance Private Limited
Categories
What is a Casual Taxable Person?
Updated on : Jan. 30, 2023 - noon 17 min read.
Who is a casual taxpayer?
A person who occasionally conducts taxable supplies (sale of goods or services) within India but does not have a fixed place of business is referred to as a casual taxable person under the GST. They are required to register for GST on a temporary basis and pay GST for their supplies made during the period of their stay in India.
A casual taxpayer under GST is required to register for GST before they start their taxable supplies in India. The registration process involves the following steps:
- Application for registration: The casual taxable person must apply for registration on the GST portal by submitting Form GST-REG-06.
2. Provisional ID and password: After the application is
submitted, the casual taxable person will receive a provisional
ID and password.
3. Upload of documents: The casual taxable person must upload
the required documents, such as PAN, address proof, and bank
details, on the GST portal.
4. Issuance of GSTIN: After the documents are verified, the
casual taxable person will receive a GSTIN (GST Identification
Number).
5. Payment of security deposit: The casual taxable person must
pay a security deposit, equal to the estimated tax liability for
the period of their stay in India, in the form of a bond or bank
guarantee.
6. Compliance with ongoing obligations: The casual taxable
person must comply with ongoing obligations, such as filing
returns and paying taxes, as per the GST laws.
Note: The registration validity for a casual taxable person is 90 days from the date of issuance of GSTIN, which can be extended for a further period of 90 days upon application.
ITR filing by a casual taxpayer
A casual taxpayer under GST is required to file the following tax returns:
- GSTR-1: A monthly or quarterly return that contains details of all outward supplies (sales) made by the casual taxpayer during the period.
- GSTR-3B: A monthly return that summarizes the outward supplies, inward supplies (purchases), tax liability, and tax paid for the period.
- GSTR-5: A monthly return that must be filed by non-resident taxable persons, including casual taxpayers, who supply goods or services in India.
- GSTR-5A: A monthly return that must be filed by OIDAR (Online Information and Database Access or Retrieval) service providers, including casual taxpayers, who supply services through an e-commerce operator.
- Final Return (GSTR-10): A final return that must be filed by casual taxpayers within 3 months of the date of cancellation or expiry of registration.
Note: The due dates for filing returns may vary based on the turnover of the casual taxpayer and the frequency of filing returns. Casual taxpayers are also required to pay taxes on a regular basis, as per the GST laws.
When does a casual taxpayer claim a refund?
A casual taxpayer under GST may claim a refund for the following reasons:
- Excess balance in electronic cash ledger: If the casual taxpayer has an excess balance in their electronic cash ledger after paying taxes, they may claim a refund for the same.
- Input Tax Credit (ITC) not utilized: If the casual taxpayer is unable to utilize the input tax credit (ITC) available to them, they may claim a refund for the unutilized ITC.
- Export of goods or services: If the casual taxpayer exports goods or services, they may claim a refund for the taxes paid on such supplies.
The process for claiming a refund by a casual taxpayer involves the following steps:
- Filing of returns: The casual taxpayer must file their returns, including GSTR-1, GSTR-3B, and GSTR-5, regularly and accurately.
- Application for a refund: The casual taxpayer must apply for a refund on the GST portal by submitting a Form GST RFD-01.
- Submission of supporting documents: The casual taxpayer must submit all the required supporting documents, such as invoices, shipping bills, and bank details, along with the application.
- Processing of refund: The tax authorities will process the refund application and, if approved, the refund amount will be credited to the bank account of the casual taxpayer.
Note: The casual taxpayer must comply with all the conditions and requirements specified under the GST laws for claiming a refund. They must also ensure that all their returns are filed on time and their tax liabilities are paid in full to avoid any interest, penalty, or other consequences under the GST laws.
Categories
