‘Casual taxable person’ term derived under GST for Professionals

By Registrationwala

26th April 2017


Good and service tax is the form indirect tax. GST is on the countdown for roll out. GST will change all the tax reforms in subsuming all the forms of taxes. In some time GST registration is going necessity. People providing service have to register for GST whether there will providing service in their state or any other state.

GST registration is liable for in such condition in which Small businessmen or Professionals are under ‘casual taxable person’ providing taxable goods or services that may find that they have to register under GST if the term applies to them. Registration will be required below the threshold limit for GST levy. In the present scenario, the exemption limit for GST is a turnover of Rs 20 lakh (Rs 10 lakh in NE states).

It is basically in case of a place where Business takes place at one city and participation is also in another city. This would fall under category ‘casual taxable person’. It is defined as who occasionally undertakes transactions involving the 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.

It depends upon the facts of each case that will determine whether or not it would be a case of an inter-state supply or it would falling in the category of supply by a casual taxable person. In case both the place of supply and the location of the service provider is in a state where he doesn’t have a fixed place of business

Casual taxable persons should apply for registration five days prior to the commencement of business. Certification of Registration valid for 90 days and can be extended up to another 90 days. There an advance deposit of tax-equivalent at the time application of registration to the estimated tax liability for the period for which the registration is sought is also to be deposited. In case the estimated tax is much more than the amount payable then it would be a lengthy process to obtain a refund. Mainly in the absence of output tax in the state where the service has been rendered as a casual taxable person.


‘Casual taxable person’ term derived under GST for Professionals