GST registration now open for casual tax payers

GSTN confirmed that they had started the registrations for casual tax payers on their portal. The casual tax payers are the ones who do or perform business activities on an occasional basis.

The registrations for the casual tax payers would be valid for 90 days. It is mandatory for the tax payer to register as a causal tax payer at least five working days before the commencement of his business.

As per the GST network (GSTN), those who perform or manage businesses occasionally can start filing their taxes as the registration facility for casual tax payers has gone live. As per the layman’s definition, a casual tax payer is someone who does business transactions quite occasionally in a state or a union territory.

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The GSTN (Goods and Service Tax Network) chairman, Navin Kumar confirmed that these registrations that would happen for the casual tax payers would only be valid for 90 days.

Before the initial period of registrations expires the casual tax payer can extend the registration duration for a maximum of 90 days. This is a great initiative as the causal tax payers do not need to register as a regular tax payer and file nil returns during the days they do not conduct any business.

A challan would be generated on individual registers as a casual tax payer where he would be expected to give an estimated number of sales. Based on those numbers he would be supposed to make an advance tax payment using the various payment options listed at the GST portal.

In any case, the casual tax payer can apply for a refund if he feels to discontinue the business activity. Casual tax payer though would not be allowed to come under the purview of composition scheme. Composition scheme has the provision that allows the businesses to pay taxes at a concessional rate and thus makes tax compliance very easy. A casual tax payer has no actual place of business.

The goods and services tax was implemented on 1st July and the process to file the first return for the month of July in the form GSTR-3B has started on the goods and service tax portal.