GST Registration (Casual Taxable Person)

A casual taxable person cannot exercise the option to pay tax under composition levy.

The procedure for applying as a casual taxable person is same as that of a normal tax payer. While applying for registration on GST portal, the system asks whether you are applying as a CTP. We will click ‘yes’ in this tab.

CTP Registration Process:

• Apply for GST registration furnishing necessary details such as PAN, Mobile No. and email id in Part-A of GST REG-1
• Validation of details filled in Part-A by entering OTP received on registered mail ID or mobile
• A Temporary Reference Number (TRN) will be generated which can be used to furnish details in Part-B of GST REG-1 form
• Pay the advance tax based on estimated tax liability for the period for which registration is sought. Estimated value of supplies and estimated tax is to be given in the application form
• On deposit of advance tax, an acknowledgement shall be issued electronically to applicant in Form GST REG-02
• Advance tax deposited will be credited to electronic cash ledger of tax payer and taxpayer shall be granted a temporary registration certificate
• The Taxpayer may download certificate, if necessary

A casual taxable person is required to make an application on GST portal at least 5 days before the commencement of business.

The validity of GST registration as a CTP is the validity as mentioned in the GST registration application or 90 days from the date of registration, whichever is earlier

If any taxpayer seeks an extension in validity period of GST registration as CTP, he shall apply through Form GST REG-11 before the end of original validity period. Along with the request for extension, the taxpayer shall also pay additional advance tax for an amount equal to estimated tax liability for extended period. If proper officer is satisfied, he may grant extension up to another 90 days.

If the business is still not concluded, then the dealer needs to apply for permanent registration in the state as extension cannot be allowed for a second time.

The CTP is eligible for refund of any balance of the advance tax deposited by him after adjusting his tax liability. The balance advance tax shall be refunded at the time of surrender of registration and only after all the returns have been filed. Further, the CTP can also avail ITC in respect of goods and services or both.

In such case, the CTP will have to deposit the extra tax payable on the supplies while filing GSTR-3B. There will be no interest on such extra tax liability if it is deposited within due date as specified u/s 39(7) of CGST Act, 2017.

A casual taxpayer needs to furnish GSTR-1 and GSTR-3B as any other regular tax payer.

• GSTR-1:- To be filed containing details about the sales made by CTP on monthly/quarterly basis based on turnover
• GSTR-3B:- To be filed on monthly basis for claiming ITC and also discharging tax due on supplies made by them

However, it shall be noted that the CTP is not required to furnish any annual GST Return.