Who is a casual taxable person?

 

A casual taxable person, as defined under the Goods and Services Tax (GST) regime in India, refers to an individual or business entity who occasionally undertakes transactions involving the supply of goods or services, but does not have a fixed place of business in the location where the transaction is being conducted. 

Here are some key points about casual taxable persons:

1. **Occasional Nature**: They engage in business activities sporadically or irregularly, typically not as their primary business activity.

2. **No Fixed Place of Business**: Unlike regular taxable persons who have a fixed place of business, casual taxable persons do not have a fixed place of business in the location where they are making supplies.

3. **Registration Requirement**: Casual taxable persons are required to register for GST in the state or Union territory where they intend to undertake business activities. This registration is temporary and typically valid for a specified period, which may be extended if necessary.

4. **Compliance Obligations**: Once registered, casual taxable persons are required to comply with GST regulations, including issuing tax invoices, collecting and remitting GST, and filing GST returns.

5. **Advance Tax Payment**: Casual taxable persons are typically required to make an advance deposit of GST based on an estimate of the tax liability for the period of registration. This deposit is made before the commencement of business activities.

6. **Input Tax Credit**: Casual taxable persons are generally eligible to claim input tax credit on GST paid on inputs and input services used in their business activities, subject to certain conditions.

Overall, casual taxable persons play a role in the GST framework by ensuring that individuals or businesses engaged in occasional transactions are brought within the ambit of GST and contribute to the tax revenue.