Deposit for GST Registration

GST Registration is required for persons, businesses and not-for-profits involved in the supply of goods and services to persons or entities in India. GST registration can be broadly be classified into three different types, namely GST registration for regular taxpayers, GST registration for casual taxable persons and GST registration for non-resident taxable persons. Under GST Act, casual taxable persons and non-resident taxable persons are mandatorily required to obtain GST registration irrespective of aggregate annual turnover. In this article, we look at the deposit requirement for those registering for GST as a casual taxable person or non-resident taxable person.

Amount of Deposit for GST Registration

All casual taxable persons and non-resident taxable persons applying for GST registration are required to make an advance deposit of tax equal to the estimated tax liability of the taxpayer for the period for which the registration is sought. Once GST payment is deposited in advance, credit would be provided for the taxpayer in the electronic cash ledger for use against payment of GST liability, fee, penalty or other charges. Further, temporary GST registration for casual taxable person would be issued showing details of expiry date of registration. In case the taxpayer needs an extension of temporary GST registration, then additional tax must be deposited as per the amount of tax liability expected to get an extension of the GST registration.

For example, if a casual taxable person estimates a GST liability of Rs.18 lakhs for a period of 2 months during the Diwali season, then Rs.18 lakhs must be deposited in advance while applying for GST registration.

Its important to note that GST registration for casual taxable persons and non-resident taxable persons are provided for a period of less than 90 days or the period requested in the GST registration application. GST registration of casual taxable persons and non-residents taxable persons can be extended for a period of 90 days, by an Officer.

Casual Taxable Persons under GST

Casual taxable person under GST 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. Good examples of a casual taxable person under GST would be fireworks shops setup during Diwali times or shops being setup in temporary exhibitions.

Non-Resident Taxable Persons under GST

Non-resident taxable person means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

Regular Taxpayers

Regular taxpayers applying for GST registration are not required to deposit any advance tax. However, after obtaining GST registration, all regular taxpayers would be required to file monthly GST returns regularly or pay penalty as per the GST Act. Penalty for late filing of GST returns is Rs.100 per day, with a maximum penalty of Rs.5000, per each instance of default.

Procedure for Paying Deposit for GST Registration

If a GST registration application for casual taxable person or non-resident taxable person is filed, then a temporary reference number would be generated for making advance deposit of tax into the electronic cash ledger. Once the advance tax payment is completed and the acknowledgement for payment is generated, the GST registration would be issued.

IndiaFilings can help you obtain GST Registration, talk to an IndiaFilings Business Advisor today.

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