Casual Taxable Person and Non Resident Taxable Person


Mr. A is a resident of Delhi and is engaged in sale of garments and holds a GST registration in Delhi. He comes to know that an exhibition is being organized by his friends in Chandigarh. He decides to hire a stall to sell his garments in Chandigarh.  How will he comply with GST in such a case? Whether he has to take a GST registration in Chandigarh or he can manage through GST registration of Delhi? Well this is a precise case where he will be required to obtain a casual person registration in Chandigarh.

A casual taxable person is a person who makes a supply of goods or services from a State where he has no fixed place of business. Since in our given case, Mr. A had no fixed place of business in Chandigarh, he becomes a casual taxable person.

A Non-resident taxable person is very much similar to a casual taxable person with the only difference that a non-resident taxable person does not have any fixed place of business in India.

An important point worth noting is that both a casual taxable Person and a Non Resident Taxable Person are compulsory required to obtain registration before making a taxable Supply irrespective of any threshold limit.

The chart below breaks down the legal provisions to explain the difference.

Casual Taxable Person

Non-Resident Taxable Person

  • a person who occasionally undertakes transactions
  • relating to 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
  • a person who occasionally undertakes transactions
  • relating to supply of goods or services or both
  • in the course or furtherance of business
  • whether as principal, agent or in any other capacity
  • but who has no fixed place of business or residence in India
Examples

  • A person having a Place of Business in Chandigarh makes a taxable supply in an Exhibition in Delhi. He will be required to take registration as Casual Taxable Person in Delhi.
  • A Firm having Place of Business in Delhi organizes a Circus in Chandigarh. He will be required to take registration as Casual Taxable Person in Chandigarh. 
Examples

  • A repair and Maintenance service provided by an employee of a Company registered in USA to a Manufacturing Company in India. USA Registered Company does not have any Place of Business or residence in India. Thus it is required to take registration as Non Resident taxable Person in GST.

 

Now if you are a looking to obtain any of the above mentioned registration, you will have to follow the below process:

  • Application for registration has to be filed atleast 5 days prior to commencement of business in form GST REG-01 along with requisite documents.
  • Amount equivalent to estimated Tax liability for the period for which registration is sought is required to be deposited along with application of Registration.
  • Based on period specified in the application for registration, a registration would be granted for a maximum of ninety days. Such period may be extended by not more than 90 days by making a request.
  • Request for extension of registration period is to be made in Form no. GST REG-25.
  • Where extension is sought, additional amount of tax equivalent to estimated tax liability is required to be deposited.
  • Amount Deposited will be credited to the electronic credit ledger and can be utilsed for payment of tax, interest and penalty.
  • Return of Outward supplies, Return of Inward supplies and Monthly returns will be required to be filed for the period for which registration is held.