Casual Taxable Person
Casual Taxable Person
Who is a casual taxable person? How is he different than a normal taxable person? What are his obligations, duties and rights? How will be he treated under GST? All your questions related to CTB are now answered. Read on
As we all very well know, a person or business is required to be registered under GST in every state where he has business or makes taxable supply. Registration means a lot of compliances, rules and procedures to follow.
Now suppose there is a company called Team Core Pvt Ltd which is a event management company. Its principle place of business is New Delhi and so it is registered under GST in New Delhi.
Due to increasing trend of destination weddings, they sometimes get assignments of managing functions in different states like Rajasthan and Goa. For this purpose, they have to make supplies to these states and also take supplies during the course of event.
Now, under GST if their turnover is more than the threshold limit, they should be registered in such states. But since these states are not their principle state of business and number of transactions is very low, getting registered as a normal taxpayer will increase their compliance burden since they will have to file nil returns in every month when they don’t have any event there.
This seems unfair to businesses and thus, a new concept of ‘Casual Taxable Person’ has been devised.
Casual Taxable Person is a person who occasionally undertakes transactions involving 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.
Important points regarding CTP –
· CTP is required to be registered irrespective of their threshold limit. That means even if their turnover is less than Rs 20L/10L , they will have to be registered.
· CTP will be eligible to claim ITC on the goods and services procured during the course of business in state where they are registered as CTP.
· Registration as a casual taxable person will be valid for a period of 90 days from the date or receipt of certificate of registration. This period can be further extended by 90 days by a designated officer.
· A casual taxable person can make taxable supply only after obtaining the certificate of registration.
· The casual taxable person is required to make an advance deposit of tax in an amount equivalent to the estimated tax liability
