GST Jamku AISpecial provisions relating to casual taxable person and non-resident taxable person
Section 27(1)
The certificate of registration issued to a casual taxable person or a non- resident taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier and such person shall make taxable supplies only after the issuance of the certificate of registration:
Provided that the proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of ninety days by a further period not exceeding ninety days.
When a casual taxable person or a non-resident taxable person obtains a certificate of registration, it comes with a specified validity period. This period is either as mentioned in the registration application or for ninety days from the effective registration date, whichever comes first. During this time, the individual is permitted to engage in taxable supplies only after receiving the registration certificate.
Extension Possibility: However, there is a provision for an extension. If the taxable person presents a sufficient cause, the proper officer has the authority to extend the initial ninety-day period. This extension can be for an additional period, not exceeding ninety days. This flexibility aims to accommodate situations where a genuine need for an extended registration period is demonstrated by the taxable person.
In summary, the registration certificate's validity for casual and non-resident taxable persons is initially determined by the application or a standard ninety-day period from the effective registration date. Yet, recognizing unforeseen circumstances, the proper officer has the discretion to grant an extension, not surpassing an additional ninety days, upon a valid and justified request from the taxable person.
Section 27(2)
A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under sub-section (1) of section 25, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought:
Provided that where any extension of time is sought under sub-section (1), such taxable person shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.
If you're a casual taxable person or a non-resident taxable person looking to register for taxes, there's a simple step you need to follow. When you submit your registration application under section 25(1), you'll need to make an advance deposit of tax. This deposit should be an amount equal to the estimated tax liability for the period you're seeking registration.
Deposit Requirement: The deposit is a way to ensure that you've covered the expected taxes for the period in question. It's an upfront payment that accompanies your registration application. This helps the tax authorities understand that you're committed to meeting your tax responsibilities.
Extension Scenario: In some cases, you might need more time to complete the registration process. If you apply for an extension under section 25(1), there's an additional requirement. You'll need to deposit an extra amount of tax. This added deposit should be equal to the estimated tax liability for the extended period.
Conclusion: In summary, registering for taxes as a casual or non-resident taxable person involves making an advance deposit of tax. This deposit ensures that you cover your expected tax liabilities for the specified period. If you seek an extension, be aware of the additional deposit requirement. This straightforward process helps maintain transparency and compliance with tax regulations.
Section 27(3)
The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided under section 49.
Registration and Tax Deposits for Casual and Non-Resident Taxable Persons
When a casual taxable person or a non-resident taxable person applies for registration, they receive a certificate of registration. The validity of this certificate is either for the specified period in the application or ninety days from the effective date of registration, whichever comes first. Only after obtaining the certificate can these individuals engage in taxable supplies.
Extension of Validity: In certain situations, if the taxable person provides a valid reason, the proper officer has the authority to extend the initial ninety-day period by an additional ninety days.
Advance Tax Deposit: At the time of applying for registration under section 25(1), a casual taxable person or a non-resident taxable person must make an advance deposit of tax. This deposit amount is equal to the estimated tax liability for the period they are seeking registration.
Extension of Time: If an extension of time is requested under section 25(1), the taxable person must deposit an extra amount of tax. This additional deposit should be equivalent to the estimated tax liability for the period for which the extension is being sought.
Utilization of Deposited Amount: The amount deposited under section 27(2) is credited to the electronic cash ledger of the taxable person. This deposited amount is then used in accordance with the provisions outlined in section 49.
By following these regulations, casual and non-resident taxable persons can ensure compliance with tax requirements while facilitating their business activities.