Introduction

Goods and Services Tax registration for casual taxable persons is a special provision under GST law that addresses the needs of businesses or individuals who undertake occasional or seasonal taxable supply in a state or union territory where they do not have a fixed place of business. These taxpayers may participate in exhibitions, trade fairs, seasonal markets, or short-term retail events outside their home state. The concept is designed to bring such temporary economic activity under the GST net while ensuring compliance without requiring permanent registration. Unlike regular taxpayers, casual taxable persons are required to apply for registration in advance, pay estimated tax liability upfront, and comply with specific return filing rules. This unique category provides a structured path for compliance, especially for businesses involved in mobile or rotating trade. Understanding the legal requirements, application process, validity period, and tax obligations is essential for any enterprise planning short-duration taxable supplies across state borders.

Who qualifies as a casual taxable person

A casual taxable person is defined as someone who occasionally supplies goods or services in a taxable territory where they do not have a fixed place of business. This includes vendors participating in exhibitions, seasonal fairs, public events, or pop-up stores in states where they are not otherwise registered. The supply must be taxable and involve commercial activity. The law treats these transactions with the same importance as regular supplies, subject to temporary compliance.

Requirement for advance registration

Unlike regular taxpayers, casual taxable persons must obtain GST registration at least five days prior to commencing business in the new location. The application is submitted using Form GST REG-01 through the GST portal, selecting the option for casual taxable person. Timely registration ensures that the person can lawfully issue invoices, collect tax, and participate in the event or sale.

Advance deposit of tax liability

At the time of registration, casual taxable persons are required to estimate their expected turnover and pre-deposit the corresponding tax liability in advance. This deposit acts as a credit against the actual liability incurred during operations. If the actual liability exceeds the estimate, additional payments must be made. Any excess balance remaining after the event can be claimed as a refund.

Temporary nature of registration

The GST registration granted to a casual taxable person is valid for a period of ninety days. This registration can be extended once by another ninety days upon request and additional payment. Once the registration expires, the business is required to stop taxable supplies in that location unless further extension is granted. This ensures that casual taxable persons remain temporary participants in the GST framework.

Issuing invoices and collecting tax

Casual taxable persons are allowed to issue tax invoices and collect GST on supplies made during the registration period. They must mention their temporary GSTIN on all invoices and comply with applicable tax rates, invoice formats, and documentation rules. These invoices form the basis for return filing and tax calculation during the period of operation.

Return filing obligations

Casual taxable persons are required to file periodic returns such as GSTR-1 for outward supplies and GSTR-3B for summary tax reporting and payment. These returns must be filed on time, even if the taxable activity lasted for only a few days. Filing returns ensures proper accounting of tax collected, credits claimed, and dues paid during the period.

Refund of excess balance

If the deposit made during registration exceeds the actual tax liability, the casual taxable person can apply for a refund of the excess balance in the electronic cash ledger. This is done using Form RFD-01. Refunds are processed after the closure of registration and filing of all required returns. This refund mechanism helps the taxpayer recover surplus tax and maintain financial efficiency.

Documentation and audit preparedness

Casual taxable persons must maintain proper records of supplies, invoices, purchases, and tax payments made during the registration period. These records must be retained for six years and produced in case of audit or departmental inquiry. Despite the temporary nature of their activity, compliance standards are similar to those of regular taxpayers.

Conclusion

GST registration for casual taxable persons provides a legal framework for businesses engaging in occasional trade across different locations. The structured process ensures that short-term suppliers contribute to the tax system without compromising on compliance. Advance registration, upfront tax payment, timely return filing, and accurate recordkeeping are central to this temporary but significant category of taxpayers. Businesses that plan to operate in different states for limited durations must prepare well in advance, estimate their tax exposure carefully, and manage their compliance responsibly. By following the laid-out procedures, casual taxable persons can participate legally in temporary trade activities and contribute meaningfully to India’s GST ecosystem.

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