Casual taxable person
This query is : Resolved
07 May 2017
Dear Experts
Section 2(20) of CGST Act defines casual taxable person.
Please advice on the following examples.
Example 1
Mr. X is a singer and he performs in various states of India. He has no fixed place of business anywhere in India. Now suppose during a FY he performs in 10 states of India, then will he have to take registration in 10 different states as Casual Taxable Person??
Example 2
Mr. Y is registered in Punjab under CGST. He has a place of business in Amritsar. Now just in one case he went to Delhi and sold some of his goods in exhibition in Delhi.
Now will he have to take registration in Delhi as Casual Taxable Person?
That is one normal registration in Punjab and second registration as Casual Taxable Person in Delhi?
regards
Shivani
Section 2(20) of CGST Act defines casual taxable person.
Please advice on the following examples.
Example 1
Mr. X is a singer and he performs in various states of India. He has no fixed place of business anywhere in India. Now suppose during a FY he performs in 10 states of India, then will he have to take registration in 10 different states as Casual Taxable Person??
Example 2
Mr. Y is registered in Punjab under CGST. He has a place of business in Amritsar. Now just in one case he went to Delhi and sold some of his goods in exhibition in Delhi.
Now will he have to take registration in Delhi as Casual Taxable Person?
That is one normal registration in Punjab and second registration as Casual Taxable Person in Delhi?
regards
Shivani
07 May 2017
The meaning of casual taxable person is not clear under GST. I think there need a clarification regarding that who will be casual taxable person. But, here is some of the provisions which is applicable to casual taxable person from which we can get the idea about that person.
1. He Occasional undertakes transactions involving supply of goods or services in a state or UT where he has no fixed place of business.
2. He should has a PAN Number
3. he has to file same application form for registration as for normal taxable persons viz GST REG-01
4. He has to undertake transactions in the course or furtherance of business
5. He has to file normal GSTR-1, GSTR-2 and GSTR-3 returns
6. He can claim ITC of all inward supplies
7. Causual taxable person is different from Non Resident Taxable Person
Now coming to your question, in your first question if he is a singer, assuming indian, then he has to get himself register somewhere. In case he has house in India, like every singers has big one, and he wanted to registered that house for GST purpose then he need to register in only that state in which he has house. It is similar to like earlier was in case of Service Tax. And the Place of supply of service in case of singing will be where the singer actually perform. He don't need to register in every single states in which he performs. His performance in other state will be inter state supply of services and he has to collect IGST in that situation.
And about your second question, when he come to Delhi and supply the Goods there then he has to issue Tax invoice and the address on the invoice would be of Amritsar, where he has place of business, and supply of goods to Delhi would be interstate and he has to charge IGST in that case also.
If someone supply one or two goods in other states will make them Casual Taxable Person. I think It is different concept which need clarification.
If you want to know more about the 'Place of Supply of goods and Services under GST' then check out my video on Youtube. Link is down here:
https://www.youtube.com/watch?v=fE7E66Pb0oQ&t=66s
1. He Occasional undertakes transactions involving supply of goods or services in a state or UT where he has no fixed place of business.
2. He should has a PAN Number
3. he has to file same application form for registration as for normal taxable persons viz GST REG-01
4. He has to undertake transactions in the course or furtherance of business
5. He has to file normal GSTR-1, GSTR-2 and GSTR-3 returns
6. He can claim ITC of all inward supplies
7. Causual taxable person is different from Non Resident Taxable Person
Now coming to your question, in your first question if he is a singer, assuming indian, then he has to get himself register somewhere. In case he has house in India, like every singers has big one, and he wanted to registered that house for GST purpose then he need to register in only that state in which he has house. It is similar to like earlier was in case of Service Tax. And the Place of supply of service in case of singing will be where the singer actually perform. He don't need to register in every single states in which he performs. His performance in other state will be inter state supply of services and he has to collect IGST in that situation.
And about your second question, when he come to Delhi and supply the Goods there then he has to issue Tax invoice and the address on the invoice would be of Amritsar, where he has place of business, and supply of goods to Delhi would be interstate and he has to charge IGST in that case also.
If someone supply one or two goods in other states will make them Casual Taxable Person. I think It is different concept which need clarification.
If you want to know more about the 'Place of Supply of goods and Services under GST' then check out my video on Youtube. Link is down here:
https://www.youtube.com/watch?v=fE7E66Pb0oQ&t=66s
08 May 2017
dear sharwan
your reply has further confused me.
who the hell is this Casual Taxable Person then?
can you please explain it with an example.
regards
your reply has further confused me.
who the hell is this Casual Taxable Person then?
can you please explain it with an example.
regards
08 May 2017
It is just simply define under CGST Act. I don't know who will be casual taxable person. But as per my understanding your examples will not fall in to casual taxable person because a singer can be on rented house so he can register that place as place of business. And why do you also want to know about it if there is simple provision with simple compliance for normal person then why make the things complicated!
23 June 2017
Hi Shivani,
As per CGST law, casual taxable person is different from a non-resident taxable person.
A casual taxable person shall have a fixed place of business in India, however such person may not have a fixed place of business in a state/union-territory of India where he is supplying goods or services.However, in case of a non-resident taxable person, the person would be a non-resident who has neither residence in India nor any fixed place of business in India.
In your case, requirements shall be as under:
Ex: 1. As you have informed, Mr. X doesn't have any fixed place of business in India, then applicability of registration may be as under:
(a) Assuming Mr. X doesn't have residence as well in India - He shall apply and obtain registration as non-resident taxable person and registration shall be in each state where he is performing.
(b) Assuming Mr. X has residence in India - First of all he has to obtain a normal registration in state of residence in India and then registration in other states where he is performing occasionally as casual taxable person.
Ex: 2. Correct, in Delhi, he has to obtain registration as casual taxable person and in Punjab he shall have normal registration.
In case of any further queries/information, you may contact me on pkush39@gmail.com
Regards,
CA Priyanka Kushwaha
As per CGST law, casual taxable person is different from a non-resident taxable person.
A casual taxable person shall have a fixed place of business in India, however such person may not have a fixed place of business in a state/union-territory of India where he is supplying goods or services.However, in case of a non-resident taxable person, the person would be a non-resident who has neither residence in India nor any fixed place of business in India.
In your case, requirements shall be as under:
Ex: 1. As you have informed, Mr. X doesn't have any fixed place of business in India, then applicability of registration may be as under:
(a) Assuming Mr. X doesn't have residence as well in India - He shall apply and obtain registration as non-resident taxable person and registration shall be in each state where he is performing.
(b) Assuming Mr. X has residence in India - First of all he has to obtain a normal registration in state of residence in India and then registration in other states where he is performing occasionally as casual taxable person.
Ex: 2. Correct, in Delhi, he has to obtain registration as casual taxable person and in Punjab he shall have normal registration.
In case of any further queries/information, you may contact me on pkush39@gmail.com
Regards,
CA Priyanka Kushwaha
04 October 2018
HI if we apply this logic every architecture and civil engineers , providing interstate services required registration under casual taxable person ? word transaction used with goods or services in such case any supply which is interstate supply shall attract provisions of casual taxa persorn ?
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