Temporary GST Registration

Temporary GST Registration

“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 (other than those making supply of specified handicraft goods) making taxable supply in India has to compulsorily take registration. There is no threshold limit for registration. Casual Taxable persons making supply of specified handicraft goods need to register only if their aggregate turnover crosses Rs. 20 Lakh (Rs. 10 lakh for in case of Special Category States, other than the State of Jammu and Kashmir.). A casual taxable person cannot exercise the option to pay tax under composition levy. He has to apply for registration at least five days prior to commencing his business in India. The specified handicraft goods are as under:
A casual tax person who are running temporary businesses in any fairs, exhibitions or any seasonal businesses,lacking a fixed place for their business activity, fall under the category of the casual taxable persons.
Input tax credit reconciliation.
Reconciliation is to be made through calculating the tax under Forward Charge as well as reverse charge. Reconciliation to be done for-
• Total turnover and Taxable turnover
• Output tax liability
• Liability under reverse charge
• Any additional tax liability that occurs either under forward charge or reverse charge is to be calculated rate wise.
• The amount paid as output tax liability computed for both point (I) and (II) above and tax computed under reverse charge as per point (III) is required to be disclosed and reconciled separately between Form GSTR 3B and the audited financial statements in Table 9.
• The demand of tax payable is to be disclosed in Table 9 on a rate-wise basis. The reconciliation on regular basis will ensure no sales or purchase are omitted or wrongly reported in the GST return. This will ensure to claim eligible ITC.
The GSTR-9C can be certified by the same CMA or CA who conducted the GST audit or it can be also certified by any other CMA or CA who did not conduct the GST Audit for that particular GSTIN. The difference between both is that in case the CMA or CA certifying the GSTR-9C did not conduct the GST audit, he must has to base an opinion on the Books of Accounts audited by another CMA or CA in the reconciliation statement. GSTR -9C is obligatory for taxpayers having turnover more than Rs. 2 Crores to avoid payment of unanticipated tax dues to the Government.