Sandipan Mitra is the CEO and co-founder of Pice. He boasts eight years of experience in the B2B and fintech sector. Sandipan's journey includes significant roles at multiple Indian Unicorns Including Product at PayU, and as founding member / VP, Product at Open Financial Technologies.
Casual taxable persons must apply for a temporary GSTIN to conduct short-term business in India, such as exhibitions or seasonal ventures.
The temporary GST registration is valid for 90 days and can be extended once for another 90 days by filing Form GST REG-11.
Applicants must submit documents like PAN, proof of business, bank details, and authorised signatory ID for casual GST registration.
Casual taxpayers must deposit advance GST equal to their estimated tax liability before getting a temporary GSTIN certificate.
Any excess GST paid during the registration period can be refunded by filing Form GST RFD-01 after return submission.
In India, individuals or businesses operating temporarily, such as those participating in exhibitions, trade fairs, seasonal ventures, or short-term projects, are classified as casual taxable persons under GST registration.
These entities are not required to obtain a permanent GST registration. Instead, they can apply for a temporary GST registration number, officially known as a Casual Taxable Person (CTP) registration.
This provision enables them to comply with tax regulations while conducting business for a limited duration. This guide explains the step-by-step process of how to get a temporary GST registration number and the key requirements involved.
Who Is a Casual Taxable Person?
The GST Act gives special treatment to a casual taxable person registration. This is someone who sometimes takes part in supplying goods, services, or both to help with business, even if they do not have a permanent place of business in that state or union territory. An unregistered user may do this as a principal, agent, or in any other role to help the company.
A person can be an individual, a Hindu Undivided Family (HUF), a company, a limited liability partnership, a government company, a firm, a group of people, a cooperative society, a local government, or a corporation. The business address listed on the registration certificate is the principal place of business.
What Is the Difference Between a Regular and a Casual Taxable Person?
A regular taxable person must register for GST. They are not regarded as non-resident users or casual taxable individuals. In India, regular taxable persons typically have a fixed place of business.
They must file monthly GST returns, maintain accounts as per the GST Act, and abide by all GST regulations unless they are enrolled in the GST composition scheme.
A casual taxable person, on the other hand, frequently does not have a fixed place of business and only conducts business on special occasions or during specific hours. As a result, a temporary user finds it challenging to adhere to the monthly GST regulations.
To accommodate their unique requirements, the GST Act contains specific registration and compliance requirements for unregistered individuals.
What Are the Documents One Requires for Temporary GST Registration?
You require the following documents for the temporary GSTIN number:
PAN card, if you are an Indian; passport, if you are a foreign national or NRI.
Proof of business registration or a document attesting to its establishment.
Proof of identity as an authorised signatory, such as a voter ID, passport, driver's license, or Aadhaar card.
Images of you and the authorised signatory (up to 100 KB in size, in JPEG format).
Evidence of your address and primary place of business, such as a property tax receipt, rent agreement, or electricity bill
If you have registration documents, such as your GSTIN, MCA registration, etc.
Information about a bank account or bank statements.
Evidence of the authorised signatory's appointment (e.g., a board resolution, authorisation letter, etc.).
The applicant's current registration, if any (such as an MCA registration, GSTIN, etc.).
What Is the Process to Acquire a Temporary GSTIN Number?
For casual taxable persons, the registration process for acquiring a temporary GSTIN number is as follows:
You start by visiting the GST portal and choosing "For Casual Taxable Person" in Part A of Form GST REG-01.
Provide information such as your PAN, email address, mobile number, state or union territory, and the anticipated business hours.
After successful verification of your email, PAN, and mobile number, you will receive a temporary reference number (TRN).
Next, you can log in using the TRN and fill out Part B of Form GST REG-01, providing all required documentation and information, including proof of address, bank account information, business type, and estimated turnover.
You must pay advance tax on the basis of your anticipated turnover for the registration period by using a challan to pay for this online or offline.
You will then receive an acknowledgement in Form GST REG-02 following the submission of the application and payment of the tax.
Within three working days, an officer reviews the application. You will receive the registration certificate in Form GST REG-06 provided there are no queries or issues.
If the officer has any questions or discovers any issues, they will notify you via Form GST REG-03. You must respond using Form GST REG-04 within seven working days.
You will receive your temporary registration certificate upon approval. If your response is not accepted or received within the deadline, you will receive a notice via Form GST REG-05 that your application is denied.
What Is the Validity of the Temporary GSTIN Registration Number?
The temporary GSTIN number is valid for a limited period. The 90-day period, or the period specified in the application, whichever comes first, is the duration of the registration number. You can extend your registration by an additional 90 days if necessary by submitting Form GST REG-11 and paying additional tax before the first period expires.
How Much Should a Casual Taxable Person Deposit for GST Registration?
For as long as their GST registration is in effect, casual taxable persons must pay advance tax equal to the anticipated tax amount. The GST portal generates a temporary reference number for the advance tax payment following the submission of the registration application.
The GST registration certificate is issued, and the money is deposited into the taxpayer's electronic cash ledger upon payment. If necessary, the taxpayer can download the certificate.
After filing all necessary returns for the registration period, a casual taxable person may receive a refund if their payment exceeds their tax liability. You can request a refund of any excess money in the electronic cash ledger by submitting an application on Form GST RFD-01 under the appropriate heading.
Conclusion
Casual taxable persons can legally run short-term businesses in India by obtaining a temporary GSTIN number. It is useful for events like fairs, exhibitions, or seasonal business sales.
By following the proper steps, paying advance tax, and submitting the correct documents, businesses can work without problems. This process makes it easier to manage tax duties for short-time or special business activities.
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FAQs
Who is considered a Casual Taxable Person under GST?
A Casual Taxable Person (CTP) is someone who occasionally supplies goods or services in a state or union territory where they don’t have a fixed place of business. Examples include participants in exhibitions, trade fairs, or seasonal businesses. Instead of a permanent GSTIN, they must apply for a temporary GST registration to comply with GST laws.
What documents are required for temporary GST registration?
To get a temporary GSTIN, applicants need documents like: PAN card (or passport for NRIs) Proof of business registration Address proof of principal place of business Bank account details Identity and address proof of authorised signatory Passport-size photos and authorisation letter Submitting accurate documents ensures faster approval of temporary GST registration.
How long is a temporary GSTIN valid?
A temporary GST registration is valid for a maximum of 90 days or the duration specified in the application, whichever is earlier. If required, it can be extended once for another 90 days by filing Form GST REG-11 and paying additional advance tax before expiry.
How much tax must a Casual Taxable Person deposit?
Casual taxable persons must pay advance GST equal to their estimated tax liability for the registration period. This advance payment is credited to the taxpayer’s electronic cash ledger. If the deposited amount exceeds actual liability, the balance can be claimed as a refund after filing returns through Form GST RFD-01.
Can a Casual Taxable Person claim a refund of excess GST paid?
Yes, if the advance tax deposit is higher than the actual GST liability, a refund can be claimed. After filing all necessary returns for the registration period, the taxpayer can apply for a refund of the excess balance in their electronic cash ledger using Form GST RFD-01 on the GST portal.
Sandipan Mitra is the CEO and co-founder of Pice. He boasts eight years of experience in the B2B and fintech sector. Sandipan's journey includes significant roles at multiple Indian Unicorns Including Product at PayU, and as founding member / VP, Product at Open Financial Technologies.
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