Casual Taxable Person/Non-Resident Taxable Person – Eshwars
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Casual Taxable Person/Non-Resident Taxable Person

[Author: Ms. Sharadaa C]

 

No fixed place of Business in India and yet wish to effect supplies of taxable goods or services from any state/union territory in India? Goods and Services Tax (GST) legislation has a remedy.

 

GST provides temporary registration to persons who wish to effect taxable supplies occasionally from any place in India. Such persons may either be a casual taxable person or a non-resident taxable person. Few points to be taken note of in this context are as follows:

  Casual Taxable Person Non-Resident Taxable Person:

 

Meaning

One who has a registered (fixed place) of business in one state in India but wants to effect supplies from some other state in which he does not have ant fixed place of business.

One who is a foreigner and occasionally wants to effect taxable supplies from any state in India

 

Registration

Compulsory registration. No threshold limit

Compulsory registration. No threshold limit

Time period for making application for registration

Atleast five days prior to commencement of business

Atleast five days prior to commencement of business

Form for registration GST REG-01 GST Reg-09
Details to be mentioned for registration

Part A – declare PAN, email ID and Mobile number

On validation of the same, a Temporary Reference Number (TRN) will be generated using which Part B of the application can be filled and submitted with the GST department.

Electronically submit an application, along with self-attested copy of his valid passport, for registration

In case the non-resident taxable person is a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its PAN, if available.

The application for registration made by a non-resident taxable person must be signed by authorised signatory who shall be a person resident in India having a valid PAN.

 

Provisions of the Foreign Exchange Management Act, 1999, need to be complied with before effecting supplies, with regard to establishment of place of business in India.

Also, the provisions of Companies Act, 2013 needs to be complied with for having established a place of business in India.

Advance Deposit of Tax:

Advance deposit of tax shall be made for an amount equivalent to the estimated tax liability

Advance deposit of tax shall be made for an amount equivalent to the estimated tax liability

 

WHEN CAN THE GOODS/SERVICES BE SUPPLIED:

On successful verification of the details submitted, the person or the business entity will be provided with a temporary reference number by the GST portal for making the advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.

 

The supplies can be effected only after:

  • the estimated tax liability paid is credited to the electronic cash ledger of the casual taxable person or non-resident person and
  • on the issuance of the certificate of registration.

 

VALIDITY OF REGISTRATION:

The certificate of registration issued shall be valid for the period specified in the application or 90 days from the effective date of registration, whichever is earlier.

The validity period of 90 days can be extended by a further period not exceeding 90 days. The extension will be allowed on making an application in Form GST REG-11 and after payment of the additional estimated tax liability for the period for which the extension is sought.

 

RETURNS TO BE FILED BY A CASUAL TAXABLE PERSON OR NON-RESIDENT TAXABLE PERSON IS AS FOLLOWS:

Casual Taxable Person Non-resident Taxable Person
Return Purpose Due date Return Purpose Due date
Form GSTR 1

Details of outward supplies of goods or services

On or before the 10th of the following month

Form GSTR 5

Details of outward and inward supplies and payment of tax

Within 20 days after the end of a calendar month or within 7 days after the last day of the validity period of registration, whichever is earlier

Form GSTR 3B

Payment of tax

To be filed before the 20th of the following month

 

REFUND OF ADVANCE TAX DEPOSITED:

The casual taxable person or non-resident taxable person is eligible for the refund of any balance of the advance tax deposited after adjusting the tax liability.  The balance in the advance tax deposited can be refunded only after all the returns have been furnished, in respect of the entire period for which the certificate of registration granted had remained in force.

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