Goods and Services Tax or GST has been implemented in India from 1st July, 2017 and casual taxable persons are also required to obtain GST registration and file GST returns. According to the GST Act, “casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. A casual taxable person is mandatorily required to obtain GST registration irrespective of annual aggregate sales turnover.
Casual taxable persons are required to obtain GST registration under a special category at least 5 days prior to the undertaking business. An application for casual taxable person GST registration can be filed online along with identity proof, address proof and photographs of the promoters. Once, an application for casual taxable person GST registration is filed, a transaction number would be generated. Using the transaction number, GST deposit must be made by the taxpayer to obtain casual taxable person GST registration in India.
E-Tax Book Solutions is the leading business services platform in India, offering a variety of services like GST migration, GST registration, GST return filing, private limited company registration, trademark filing and more. E-Tax Book Solutions can help casual taxable persons with end-to-end GST compliance services starting from GST registration to GST return filing through a proprietary GST accounting software. The average time taken to obtain GST registration is about 10 - 15 working days, subject to government processing time and client document submission. Get a free consultation on GST registration, GST accounting and GST return filing by scheduling an appointment with an E-TAX Advisor.
With the implementation of GST in India, the indirect taxes would be streamlined and standardized. Under GST regime, businesses would no longer have to obtain multiple VAT registration in different States or obtain a separate VAT and Service Tax registration. A single GST registration would be sufficient across India for selling or purchasing goods or providing services.
Currently in some states under the VAT regime, businesses are required to comply with VAT regulations once they cross an annual turnover of Rs.5 lakhs. Under GST regime, GST liability accrues only if an entity crosses an annual turnover of Rs.10 lakhs in northeast or hill states, whereas for rest of India, the threshold is set at Rs.20 lakhs.
GST is expected to increase the tax base in India significantly. Hence, the overall tax liability for businesses is expected to reduce overtime, as more and more businesses become compliant. Further, GST will use the latest in technology, including data from Aadhaar database, PAN database, etc., to make GST registration and GST return filing process, as seamless as possible.
Currently, many businesses like restaurants, computer sales and services businesses have to comply with both VAT and Service Tax regulations. This creates a compliance burden on the business, as they have to calculate taxes for the transaction based on different rates for different items. Under GST, the distinction between goods and services will be gone – making doing business easy.