Who is Casual taxpayer under GST?

All About Casual Taxable Person Under GST
All About Casual Taxable Person Under GST

Who is a contingent/casual taxable person under GST?

In GST, “Casual Taxable Person” refers to a person who does temporary business in one place. He has no fixed place and address in that city. However, that person, as a chief, agent, or any other type of employee, can supply goods or services. Those who temporarily trade goods or services in another state register themselves as casual taxable persons. Such registration can only be for a maximum period of 90 days. Registration must be completed at least 5 days before starting the business.

For example-

Ashwin Kumar has an Event Management Company, with its headquarters in Delhi. It wants to start its services in Agra district of Uttar Pradesh. It does not have its own office here. In such a situation, Ashwin Kumar will have to get himself registered as a Casual Taxable Person in Agra. Only then he can start serving his company in Agra.

Similarly, suppose Arunendra Sinha has a carpet manufacturing company in Varanasi, Uttar Pradesh. He wants to set up an exhibition and sale of his products in Bhopal, Madhya Pradesh. They too have to first get themselves registered as casual taxable persons. Only then they can start a temporary business here.

How much advance GST do Casual Taxpayers have to pay?

Casual Taxable Person (CTP) has to take temporary registration of GST in the state in which he wants to do a temporary business. 

He also has to pay Advance GST before starting a business. This is according to its estimated turnover (Estimated Turnover). For example, if a business has an 18 percent GST rate, a person with an estimated turnover of Rs 10 lakh has to pay a total of Rs 1, 80,000 as Advance GST.

Before getting a Casual Registration, he has to estimate the total price of his supplies and his tax accordingly. They will also have to be mentioned in the application form to be filled for registration.

Mandatory field: Registration mandatory even on low turnover

Under GST, at present, it is necessary to register only such person or businessman, whose turnover is more than Rs 40 lakhs annually. However, GST Registration of Casual Taxable Person (CTP) is mandatory in any case, no matter how low it’s turnover.

Can the Casual taxpayer adopt a composition scheme under GST?

No, a Casual taxpayer cannot adopt a composition scheme under GST. Or A Casual taxable person (CTP) under GST cannot adopt a composition scheme. It is noteworthy that businessmen with less than 1.5 crore turnover are allowed to adopt a composition scheme. This allows the casual taxpayer to pay GST at a certain percentage of their annual turnover. Like ordinary traders, they do not have to file returns every month. Only quarterly and annual returns have to be filed. They do not have to worry about keeping track of all their transactions.


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