Casual Taxable Person (CTP)
Meaning- Registration process –CTP under GST Other provisions of CTP-Refund Of Advance Deposit-CTP Returns-Relief to Notified registered Persons-Notification for CTP- Obtain PAN & Generate E-way Bill-CTP Annual return-Commencement of Business Require CTP registration –Penalty
Registration for Casual Taxable Person (CTP) under GST requires prescribed procedure and liable to pay an advance deposit of tax and required to file an annual return. Government has issued recent notification for CTP.;
Who is a Casual Taxable Person (CTP):
As per Section 2(20) of CGST Act 2017, CTP means 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.
In other words, If a person is registered in one state but wants to undertake his supplies in other states also and that too for short duration of time then he can opt to register himself as a Casual Taxable Person. For Example: If Mr. Bansal has their business of electronic goods in Punjab but he wants to participate in an Exhibition that is going to be held in Delhi for a Month, In this case, He cannot come and join that exhibition to sell his goods until he registered himself as a Casual Taxable Person as per GST provisions.
Registration Provisions for CTPs:
- A CTP can obtain Registration by declaring his PAN, Mobile Number, E-Mail Id & State/UT in Part A of Form GST REG-01 on the common portal. CTP has to get himself registered with GST at least 5 days before commencement of his business irrespective of his Threshold limit.
- At the time of submitting an application for registration, Casual Taxable persons are required to make an advance deposit of Tax which is equivalent to estimated Tax liability that could arise during the period of registration.
Such a person will get a TRN which is used by him for the advance deposit of tax. After the deposit made by that person, such amount shall be credited towards Electronic cash ledger of such CTP. Acknowledgment of registration shall be generated only after such deposit.
3. Registration Certificate granted to Casual Taxable Person shall be valid for the
- The period mentioned in the application, or
- 90 days from the effective date of registration ( this period of 90 days can be further extended by 90 days by making an application in Form GST REG-11 before expiring the validity of registration granted) Whichever is earlier.
If the assesse wants to make a further extension of its registration then he shall have to apply for normal registration
Relief to notified categories of supplier for obtaining Registration:
N/N 32/2017- CT-dated 15th Sep. 2017 [ Sec 23(2) of CGST Act, 2017]
Casual Taxable person making taxable supplies of handicraft goods ( as defined in the notification – 28 items) are notified as to the category of persons exempted from obtaining registration under GST Act if their aggregate value of such supplies (on all India basis) does not exceed an amount of twenty lakh rupees. ( amount of ten lakh in case of special category states other than J&k). Also, they need to obtain PAN & generate E-way Bill as per the provision of Rule 138 of CGST Rules, 2017.
N/N 8/2017- iT-dated 14th Sep. 2017 [ Sec 20 of IGST Act r/w Sec 23(2) of CGST Act, 2017]
Casual Taxable person making interstate supplies of handicraft goods ( as defined in the notification – 28 items) are notified as to the category of persons exempted from obtaining registration under GST Act if their aggregate value of such supplies (on all India basis) does not exceed an amount of twenty lakh rupees. ( amount of ten lakh in case of special category states other than J&k). Also, they need to obtain PAN & generate E-way Bill as per the provision of Rule 138 of CGST Rules, 2017.
Other than above, the threshold limit of Rs. 20 lakhs is not applicable to the casual taxable person, that means they have to compulsory register themselves as per section 24 of the CGST Act, 2017. Also, A casual taxable person cannot opt for the Composition Scheme
A casual taxable person is required to furnish the following GST returns electronically through the common portal:
- Form GSTR-1 which is needed to be filed on or before the tenth day of the following month in which he will provide all the details of outward supplies made by him during the month.
- Form GSTR-2 which is needed to be filed after tenth but on or before the fifteenth day of the following month giving all the details of inward supplies made by him during the month.
- Form GSTR-3 which is needed to be filed on or before 20th day of the following month giving all the summarized details of purchase and sales during the month along with the amount of GST liability.
CTP can file these return either directly or through the facilitation center. It is important to be mentioned that right now only GSTR-1 and GSTR-3B (in place of GSTR-3) is required to be filed.
Unlike normal Taxpayer, A casual taxable person is not required to furnish the Annual Return.
Refund by CTP:
A casual taxable person is eligible for the refund of any excess balance left in cash ledger after adjusting all its GST liability during the registration period. He will only be eligible to get refund only if all the Returns has been filed by such person in respect of the period for which certificate of registration remained in force. Application of refund in case of excess balance in cash ledger has to be made in serial number 14 of last Form GSTR-3 required to be furnished by him.