How to take GST Registration for Casual Taxable Person and Nonresident Taxable Person in India – Complete registration procedure
by Paras Mehra 4.36K
1.0 Introduction
The concept of casual taxable person and Nonresident taxable person has their own relevance under the GST law. Both the concept are different, however their treatment under the GST law are very much same. To know more about the GST registration of casual taxable person and Nonresident taxable person, we need to first understand the meaning of casual taxable person and Nonresident taxable person. Both these terms are defined as follows:
2.0 Meaning of Casual taxable Person and Nonresident taxable person under GST
1. Casual Taxable Person: “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.
Important points
- GST registration is state wise and hence there may be a situation where a person who is registered under one state may also require registering under another state but only for few days. Further, he also does not have any other fixed place of business from where he can take GST registration.Therefore, the concept of casual taxable person shall help that entire person who does not have any fixed place of business but they are liable to register under GST from that state.
E.g. Trade fair in Pragati Maidan Delhi, where many dealers comes from across India to sell their specialty however, since they are supplying goods/services from Delhi for few days only, hence it may not be feasible for them to apply for normal registration. Hence, this person can take registration as a casual taxable person.
- Casual taxable person can be a company, firm, individual etc.
2. Nonresident Taxable Person: “Non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
Important points
- If any person supplies anything in India, then the GST is levied upon that transaction and hence the person shall require the GST registration. Further, for those entities who do not have any fixed place in India and who also undertakes transaction occasionally in India, then he can register themselves as Nonresident taxable person.
E.g. a Company based in Singapore, comes to the International Business festival at New Delhi. In that business festival, the company undertakes certain supplies. Since, the company was based outside India and which also do not have any fixed place of business in India, then this person shall be covered by the definition of Nonresident taxable person.
- If the nonresident is supplying anything which is not taxable, then he shall not require the GST registration irrespective of the turnover.
3.0 Special provision for GST registration relating to Casual Taxable Person and Nonresident taxable person
a) The GST registration shall be applied via form GST REG 01 where person needs to select the appropriate category i.e. Casual Taxable Person, if he is covered under the definition as discussed above.
b) The certificate of registration issued to a casual taxable person or a nonresident taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier.
c) However, the proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of ninety days by a further period not exceeding ninety days. In other words, the total period cannot exceed 180 days in any case.
d) The casual taxable person or the Nonresident taxable person shall not supply anything until and unless the GST registration certificate is issued to them. Hence, there is no concept of applying GST in 30 days like it is available for normal taxable person.
e) A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.
For Example: Mr. A wants to register as a casual taxable person in the state of Delhi. He wants to participate in an exhibition which will last for 40 days. During the tenure of 40 days, he expects the turnover of Rs.50 lakh. Calculate the estimated tax liability of which he needs to make an advance deposit off. Assume tax rate of 18%.
The total expected turnover is Rs.50 lakh and the tax rate is 18%. Therefore total estimated tax liability is Rs.9 lakh (CGST plus SGST). Therefore, Mr. A needs to make an advance deposit of Rs.9 lakh before the tax authorities to get the GST registration.
f) No proof is required to be submitted for expected turnover.
g) Further, where any extension of time is sought (e.g. from 45 days to 90 days), such taxable person shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.
Example: Suppose in above example, the exhibition extended the duration by 90 days and the casual taxable person Mr. A sought to amend the GST registration for another 90 days and he expects the additional turnover of Rs.1 Crore. Please calculate estimated tax liability.
h) Since, Mr. A has sought an extension in the time; he is then also required to submit additional tax. The expected additional turnover is Rs. 1 Crore; hence the tax shall be Rs.18 lakh. Now to get the amended GST registration, Mr. A needs to deposit the additional tax amount of Rs.18 lakh with the government.
i) Any amount deposited as advance shall be credited to the electronic cash ledger which can subsequently be used for tax adjustment and payment in terms of Section 49 of CGST law.
4.0 Conclusion
We have explained everything above regarding the casual taxable person and nonresident taxable person. Hence, in case you need the GST registration for casual taxable person and nonresident taxable person, please email us at info@hubco.in.
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