CASUAL TAXABLE PERSON AND NON- RESIDENT TAXABLE PERSON

WHAT IS THE POSITION OF CASUAL TAXABLE PERSON

There is some person in a business who does not do the business regularly and they have done not any fixed place of business.

The GST act provisions and rules are different from them are different from the normal taxpayers under GST. Even their registration process is also different.

A casual taxable person is the one who occasionally undertakes the transaction. They make the transaction from the place where they have no fixed place of business.  They can act as a principal or agent as well.

WHAT IS THE POSITION OF NON- RESIDENT TAXABLE PERSON

Some persons who is not resident of India and they do not have any place of business in India. But they occasionally undertake transactions temporarily.

They also get registration temporarily like the casual taxable person. The GST act provisions and rules are different from them are different from the normal taxpayers under GST. These are called non-resident taxable persons.

REGISTRATION OF CASUAL TAXABLE PERSON

1. There is no specific form for the registration of a casual taxable person. They can apply in FORM GST REG-01 for registration.
2. Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the common portal needs to be declared by them. Mobile number, email is verified by OTP. Permanent Account Number validated by database maintained by the Central Board of Direct Taxes.
3. After verification, a temporary reference number will be generated mobile number and e-mail address.
4. By using that reference number the applicant shall electronically fill up the application in Part B of FORM GST REG-01.
5. Then the casual taxable person needs to mandatory deposit the advance of tax for an amount equivalent to the estimated tax liability.
6. After depositing, an acknowledgment shall be issued electronically to the applicant in FORM GST REG-02.
7. The registration certificate shall be issued electronically when the said amount is a deposit in his electronic cash ledger
8. if the casual taxable person wants to extend the period of registration shown in his application of registration, an application in FORM GST REG-11need to be submitted.

REGISTRATION OF NON- RESIDENT TAXABLE PERSON

1. FORM GST REG-09 is filled for registration before 5 days of commencement of business.
2. a self-attested copy of his valid passport is given at the time of application.
3. tax identification number or unique number shall be submitted in case the non-resident taxable person is a business entity incorporated or established outside India.
4. The registration application made by a non-resident taxable person has to be signed by his authorized signatory who shall be a person resident in India having a valid PAN.
5. Mobile numbers, email needs to be given and they are verified by OTP.
6. After verification, a temporary reference number will be generated Common Portal.
7. a non-resident taxable person shall need to deposit the advance of tax for an amount equivalent to the estimated tax liability
8. The registration certificate shall be issued electronically when the said amount is a deposit in his electronic cash ledger.
9. if the non-resident taxable person wants to extend the period of registration shown in his application of registration, an application in FORM GST REG-11 needs to be submitted.

INPUT TAX CREDIT PROVISIONS

• casual taxable persons are allowed to take the input tax credit on all inward supplies whether it is inputs, capital goods, and input services.
• a non-resident taxable person is allowed to take input tax credit only on the goods imported by them. All the others are blocked under section 17(5).

IMPORTANT FORMS FOR CASUAL TAXABLE PERSON AND NON- RESIDENT TAXABLE PERSON

casual taxable person

presently only FORM GSTR-1 and FORM GSTR-3B is filled.

• For registration use the FORM GST REG-01
• FORM GSTR-1 is given for outward supplies of goods or services before the 10^th day of the following month.
• Return filling under FORM GSTR-2 is given for inward supplies to be filed after the 10^th but before the 15^th day of the following month.
• FORM GSTR-3 after the 15^th day but before the 20^th day of the following month.
• Normally FORM GSTR-3B is given before the 20^th day of the following month.

Non-resident taxable person

• FORM GST REG-09 is for registration
• FORM GSTR-5 details of outward supplies and inward supplies and shall pay the tax, interest, penalty, fees, etc. within 20^th  days after the end of a calendar month or within 7^th  days after the last day of the validity period of the registration, whichever is earlier.

REFUND UNDER CASUAL TAXABLE PERSON AND NON- RESIDENT TAXABLE PERSON

• casual taxable person refund is granted for advance tax deposited by him after adjusting his tax liability and when all the returns required in respect of the entire period are furnished. It is given serial no. 14 of the last FORM GSTR-3.
• non-resident taxable person -Refund shall be given only when all the returns required in respect of the entire period are furnished. It is given in serial no. 13 of the FORM GSTR -5.

 

 

FAQ ON GOODS AND SERVICES TAX 

 

Query:  is any threshold limit apply to casual taxable persons and non-resident taxable persons for registration?

Answer: No, there is no threshold limit apply to a casual taxable person and non-resident taxable person for registration.

Query: -composition scheme applies to the casual taxable person and non-resident taxable person?

Answer: No, the composition scheme applies to casual taxable persons and non-resident taxable persons.

Query:– can a casual taxable person and a non-resident taxable person take registration can take registration after the commencement of business?

Answer: No, casual taxable person and non-resident taxable person need registration before the commencement of business.

Query: Please clarify what is the taxable event under GST?

Answer: The taxable event under GST shall be the supply of goods and/or services made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as ‘supply’.

Query: One of my clients is already registered under Vat law and Service Tax law. Whether he has to obtain fresh registration under GST law?

Answer: No. GSTN shall migrate all such assessees or dealers to the GSTN network and shall issue GSTIN number and password. They will be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in the cancellation of the GSTIN number. The service tax assessees having centralized registration will have to apply afresh in the respective states wherever they have their businesses.

Read our articles:

• E-Invoice Mechanism under the GST
• Blocking/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN
• Reasons for the Movement of Goods under the GST

Query:  If the appellate or revisional order goes in favor of the assessee, whether a refund will be made

in GST? What will happen if the decision goes against the assessee?

Answer: The refund shall be made in accordance with the provisions of the earlier law only. In case any recovery is to be made then it will be made as an arrear of tax under GST.

Query: Whether any person, who is not liable to pay GST or not liable to get registered himself, can voluntarily get himself registered?

Answer:  Yes. The person can get himself registered voluntarily even though he is not liable to be registered and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.

Query: Please explain the procedure for registration of a non-resident taxable person?

Answer: Every Non-resident taxable person is required to submit an E-application for registration in Form –GST REG 10 at least 5 days prior to commencement of the business. Such person shall be given a temporary identification number by the Common Portal for making an advance deposit of tax under section 19A and the acknowledgment in Form GST REG-2  in shall be issued thereafter.

Query: If a person, who has taken voluntary registration, can seek cancellation of his registration?

Answer: Any person who has taken voluntary registration can also seek cancellation of his registration but not before one year of such registration. There should be a gap period of 1 year from effective registration in case of voluntary registration.

Query: Whether a person is eligible for an input tax credit on inputs from the date when he applies for registration or from the date when registration is granted. Please clarify.

Answer: The person is eligible for an input tax credit on inputs held in stock and inputs contained in semi-finished or finished goods held in stock from the date when registration is granted.

Query: what are included as “Place of Business” under GST ?

Answer: Place of Business includes the following places:-

(a)  Place of ordinary business

(b)  Warehouse, Godown & other places for storage goods or place to provide services

(c)  Place of Maintenance of Books of accounts

(d)  Place of any agent conducting the business

Query: Sir if a person is operating in two different states, with the same PAN, Can he obtain a single Registration under GST?

Answer: No, every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST.

Query:  Is there any provision for a taxable person to pay tax on a provisional basis under GST law?

Answer: Yes, a taxable person can make payment on a provisional basis but only after the permission of the Proper Officer & only in such cases where he is unable to determine:

1. a) the value of goods or services to be supplied by him, or
2. b) determine the tax rate applicable to the goods or services to be supplied by him.

Query: Whether an agreement to supply goods at future date can be considered as a contract of supply for the purpose of GST? How will hire purchase transactions to be treated?

Answer: The definition of ‘supply’ in Model GST law includes all forms of supply of goods made or agreed to be made for consideration. Thus, an agreement of supply at a future date will constitute an agreement of supply of goods.

Query: Can a taxpayer use a digital signature in the GSTN registration?

Answer:  Taxpayers have the option to sign the submitted application using valid digital signatures (if the applicant is required to obtain DSC under any other prevalent law then he will have to submit his registration application using the same). For those who do not have a digital signature, alternative mechanisms will be provided in the GST Rules on Registration.

Query: A person has one place of business in Delhi with a turnover of Rs. 13 lakhs and other places of business in Manipur with a turnover of Rs 4 lakhs. What would be the threshold limit in this case for registration?

Answer: In this case, the person’s aggregate turnover in the state of Delhi will be Rs. 17 lakhs (i.e. Rs 13 + Rs 4 lakhs) which is less than the threshold limit of Rs 18 lakhs. Thus he is not liable for registration in Delhi. But he is liable for registration in Manipur as the aggregate turnover exceeds the threshold limit of Rs 9 lakhs.

Query: What is the difference between Annual returns & Final returns?

Answer: Yes, an Annual Return has to be filed by every taxable person who is registered and paying tax as per the normal or compounding scheme. Final Return has to be filed only by those registered taxable persons who have applied for cancellation of registration. This has to be filed within three months of the date of cancellation or the date of cancellation order.

We look forward to your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com                 E: singh@carajput.com

T: 9-555-555-480