Glossary
What is a casual taxable person?
The registration you need to sell for a few days in another state, at a fair or an exhibition, without a shop there.
Updated
In short
A casual taxable person sells occasionally in a state where they have no fixed place of business. SimpleERP can bill the fair from a separate branch with its own GSTIN.
A casual taxable person is someone who occasionally makes taxable supplies in a state or union territory where they have no fixed place of business, such as a trader selling at an exhibition. They must register in that state whatever their turnover, at least five days before starting, and deposit an advance amount of the estimated tax. The registration is valid for a limited period, as notified.
Casual taxable person: a worked example
Lakshmi Steel Furnitures takes a stall at a five-day furniture fair in Bengaluru. It has no place of business in Karnataka, so it registers there as a casual taxable person.
- Estimated sales at the fair: ₹3,00,000, at 18% GST.
- Advance tax deposited before the fair: ₹54,000.
- A sale of 4 office chairs at ₹6,450 to a Bengaluru buyer: ₹25,800 plus CGST ₹2,322 and SGST ₹2,322, because the fair branch and the buyer are both in Karnataka.
- Tax due on actual sales is set off against the ₹54,000 deposit, and any balance is refunded after the final return.
FAQ
Questions, answered
Do I need registration even if my turnover is below the threshold?
A casual taxable person needs GST registration even below the threshold, and must register in the state of the event whatever their aggregate turnover, under the rules as notified. Some exemptions exist for specific handicraft goods. Check the GST portal before the event.
How long is a casual registration valid?
It is granted for the period you ask for, up to 90 days, and can be extended once by a further 90 days, as notified. Apply at least five days before you start selling.
Why do I have to pay tax in advance?
Because the state has no other hold over a seller who leaves after the event. You deposit the estimated tax for the period when you apply, use it against the tax on your actual sales, and claim back any balance at the end.
Can I use my home GSTIN for sales at the fair?
A home-state GSTIN cannot be used for sales at a fair in another state. A sale made from a place in Karnataka by a Tamil Nadu business with no fixed place there needs a Karnataka registration. Billing from your home GSTIN would put the wrong state on the invoice and the wrong tax on the return.
Related
Keep reading
GSTIN
The 15-character GST number of a registered business: state code, PAN, entity number, check digit.
Read morePlace of supply
Where GST treats a supply as happening, which decides CGST and SGST or IGST.
Read moreGST registration threshold
The aggregate turnover above which GST registration is compulsory: ₹40 lakh for goods, ₹20 lakh for services in most states.
Read more
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