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CA Intermediate · Taxation · Registration

Ravi, a casual taxable person, plans to run a Diwali exhibition stall in Pune for 20 days in October, supplying taxable goods. He expects taxable supplies of Rs 6 lakh and tax liability of Rs 90,000 during the period. Which statement is correct as per the CGST Act?

Ravi must apply for registration at least five days before starting the stall and deposit advance tax equal to the estimated liability of Rs 90,000 in his electronic cash ledger. Casual taxable persons get no threshold exemption and cannot register after beginning business.

  1. AHe must obtain registration at least 5 days before commencing business and deposit an advance tax equal to estimated liabilityCorrect
  2. BHe may begin business and register within 30 days
  3. CHe need not register because the period is under 30 days
  4. DHe must register 30 days before and deposit 50% of liability

Explanation

A casual taxable person must apply for registration at least five days before commencing business and deposit advance tax equal to the estimated tax liability for the period of registration (here Rs 90,000). No threshold exemption applies to casual taxable persons. The 30-day option is for ordinary persons crossing the threshold.

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