TEMPORARY GST REGISTRATION

temporary gst registration

Temporary GST Registration – Any individual who is engaged in carrying business occasionally and do not have a permanent/fixed place of business can apply for temporary registration under the GST Law

It has been stated under Section 2(20) of the CGST Act, 2017, that “a person who occasionally undertakes transactions which involve the supply of goods or services or both in the course or furtherance of his 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.

Casual taxable persons are also allowed to take temporary registration under the GSTY law as they also have been provided special treatment under the law. The Casual taxable persons are fit in the definition as provided as they may understand to be a person who carries out business for few months in any given year, whether as a principal or agent and does not have any permanent place of business.

It is to be noted that Casual taxable persons are mandatorily required to take registration under the GST Act, for them, there are no criteria of taxable turnover. The exemption is only provided to specific Casual taxable persons who are dealing in making the supply of specified handicraft goods. Further, Casual taxable persons are not allowed to get the benefit of a composition scheme as defined under Section 10 of the GST Act. The composition scheme helps the businesses to pay taxes at a concessional rate and makes tax compliance easy.

WHO CANNOT OPT FOR COMPOSITE SCHEME?

The following taxpayer cannot opt for the scheme:

  • Manufacturer of pan masala, ice cream or tobacco
  • Inter-state supplies
  • A casual taxable person or a non-resident taxable person
  • Businesses which supply goods through an e-commerce operator
  • e-commerce operator

REGISTRATION

Every Casual Taxable Person shall apply for registration at least 5 days before commencement of his business. There is no special form to register as a casual taxable person under GST Law.

Like normal taxpayer FORM GST REG-01 can be used for obtaining registration by casual taxable person. A casual taxable person, before applying for registration, should declare his:

  • Permanent Account Number
  • Mobile number
  • E-mail address
  • State or Union territory

All above information can be to be filled and filed in Part A of FORM GST REG-01 on the GST portal.

VALIDITY OF REGISTRATION

Casual Taxable Person can apply for registration under GST Act having a maximum validity of 3 months or 90 days and not more than that however, if the proper officer is satisfied he can further extend the period.

EXTENSION IN PERIOD OF REGISTRATION

Casual Taxable Person can apply for further extension in period of registration, for this an application again in FORM GST REG-11 the application shall be filed before the expiry of validity of registration.

An extension can be made for a further period not extending 90 days. The extension will be allowed only on deposit of additional tax liability for the extended period.

RETURNS TO BE FURNISHED BY A CASUAL TAXABLE PERSON

The Casual Taxable Person is required to furnish return as may be prescribed under the GST Act

ANNUAL RETURN

Casual Taxable Person is not required to file any annual return under the GST Law as required by a normally registered taxpayer.

REFUND BY CASUAL TAXABLE PERSON

Casual Taxable Person is eligible for the refund of any amount deposited in excess of tax liability which will be refunded after all the necessary returns have been furnished for the Registration period.

Application for Refund of balance in excess of tax liability in the electronic cash ledger has to be made in serial no. 14 of the last FORM GSTR-3 return

IMPORTANT POINTS

Casual taxable person must:

  • Compulsorily take registration as there is no threshold limit for the registration.
  • Apply for registration at least 5 days prior to the undertaking business.
  • Cannot exercise the option to pay taxes under the composition scheme.
  • Make an advance deposit of tax which is equivalent to his estimated tax liability.

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