Understand Casual Persons and Non Resident Persons Under GST

This document covers

1. Casual Taxable Persons (CTP)
2. Non-Resident Taxable persons(NRTP)
3. Registration procedure
4. Returns
5. Refunds

1. Casual Taxable Persons (CTP)

• Casual Taxable Person means a person who occasionally undertakes transactions involving supply of goods or services or both in further course of business in a State or Union Territory where has no fixed place of business.
• There may be a situation where the taxpayer is having GST in 1 state but he might want to supply goods or services or both from another state where he don’t have any fixed place of business. In this case, he can register as casual taxable person
Example:
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Balaram Enterprises is having fixed place of business in Bangalore, and they have registered under GST in Karnataka. Balarama enterprises wants to participate in Numaish exhibition in Hyderabad for 45 days and they don’t have any fixed place of business in Hyderabad, Telangana. In this case, Balaram enterprises can register as casual taxable person
• Casual Taxable persons cannot opt to pay tax under composition scheme

Note: Generally Casual Taxable Persons are required to register under GST irrespective of threshold limit. However Casual Taxable Persons who is making inter state taxable supplies of notified hand crafted goods and notified hand made goods are exempted from GST registration until their threshold is 20 lakhs (Rs 10 lakhs in case of special category states of Mizoram, Tripura, Manipur and Nagaland) in a Financial year.

2. Non-Resident Taxable persons(NRTP)

• Non-Resident taxable person means a person who occasionally undertakes involving supply of goods or services or both but who has no fixed place of business or residence in India
Example:
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Mr James who is a citizen of United Kingdom wants to sell some Specialized items in India but he doesn’t have any residence or business place in India. In this cases, Mr James needs to register as Non Resident taxable Person
• Non-Resident taxable person cannot opt to pay tax under composition scheme

3. Registration procedure

1. Threshold Limit : Casual taxable Person and Non-Resident Taxable persons are required get registered under GST irrespective of Threshold limit
2. Due date of Registration : CTP and NRTP’s are required to get registered under GST atleast 5 days prior to commencement of business.
3. Period of Validity of GST registration : Registration granted for CTP or NRTP is valid for
   1. Period specified in the registration application or
   2. 90 days from the effective date of registration (can be extended further) Whichever is earlier.
4. Advance deposit of tax :
   1. CTP or NRTP are required to deposit advance tax (GST) which is equivalent to the estimated tax liability for the period of registration.
   2. CTP/NRTP will get the Temporary Reference Number (TRN) for making payment of GST and it will be credited to his electronic cash ledger.
   3. An acknowledgement of receipt of application for registration is issued only after making advance payment of GST
   4. Advance deposit of GST should be calculated by considering the ITC available for such period.
   NOTE:
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   NRTP’s cannot claim Input Tax Credit on any other goods/services except on Import of Goods by him whereas CTP’s can claim all ITC
5. Type of Registration :
   1. Casual Taxable person Registration is a PAN based Registration and it will be done like normal registration.

   2. Note: Aadhaar Authentication is mandatory for the Casual Taxable Persons while GST Registration. While filing the GST Registration application, the application gets an option whether he wants to opt for Aadhaar authentication or not. If the taxpayers opts for Aadhaar Authentication, he needs to follow the below procedure

      • GST Portal will send authentication link on the mobile number and email address given in the registration
      • Once the taxpayer clicks the verification link, aadhaar authentication window opens and the taxpayers enters the aadhaar number and OTP received on the registered mobile and email address linked with aadhaar.
      • Once the Aadhaar authentication is successfully done, the GST Registration application will be deemed to be approved within 7 working days and registration will not be marked for mandatory site visit unless the tax officers raise a show cause notice.

      If the taxpayer does not opt for aadhaar authentication, or if the aadhaar authentication fails in validation, the registration will not be approved within 7 working days and it will be marked for mandatory for site visit. Registration application will get deemed approved after 30 calendar days if tax officer does not take any action.

      If it is a business entity incorporated outside India, the registration application should be submitted along with tax identification number or unique number on the basis of which the entity is identified by Government of that country or its PAN if available.

   3. Non-Resident Taxable Person generally don’t have PAN of India. Hence, the person is required to submit self-attested copy of passport along with the application signed by his authorized signatory who is a resident of India having valid PAN.

For Comprehensive Understanding, refer at @ Registration process of GST

4. Returns

1. Casual Taxable Person : Casual Taxable Persons are required to file GSTR 1 (11th of next month) and GSTR 3B(20th of next month) on monthly basis
2. Non Resident Taxable Persons : NRTP’s are required to file GSTR-5 for every month. The due date for filing GSTR-5 is 13 days after the end of calendar month or within 7 days after the last day of validity period which ever is earlier

5. Refunds

1. CTP/NRTP’s are required to claim refund of any excess paid tax in the last return required to be furnished by them
2. CTP/NRTP’s are required to file all the returns before filing for refund application.