TMI BlogPlace of supply and Registration for Training ServicesX X X X Extracts X X X X X X X X Extracts X X X X ..... A client of ours, registered in Delhi for conducting Training Programs, is now planning to conduct programs in Noida and Gurgaon. There would be no permanent place of business/office in these places; only a hall or auditorium would be hired for the few days needed for the program. It is our understanding that 1)no registration is required to be taken in UP/Haryana and that 2)the place of supply would be as per the provisions of Section 12(5) of the IGST Act . Accordingly, for a trainee (recipient) registered in Delhi, the client would issue an invoice with Delhi CGST SGST and for all others an IGST invoice with the place of supply shown as UP for unregistered recipients and the respective registration state/UT of registered re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cipients. Request the experts of this panel to confirm the above. Also, is there any way for the client to avail ITC on the hire charges paid for the hall/auditorium (UP CGST and SGST)? Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, it is suggested to register as a casual taxable person. - Reply By Ganeshan Kalyani - The Reply = After obtaining registration you will be able to take GST credit on the auditorium rent charges, stay charges, but not on food and beverage. - Reply By Padmanathan Kollengode - The Reply = I agree with Ganesh Kalyan Ji. CTP registration will enable your client to take ITC of rent. - Reply By KASTURI SETHI - The Reply = The querist's client has already GSTIN (Regular). Thus he is already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a taxable person. Can a taxable person (regular) function as 'casual taxable person' also simultaneously ? Experts' views are solicited to enrich my knowledge. - Reply By KASTURI SETHI - The Reply = Sh.Lalitha Krishnamurthy Ji, After thorough examination of the issue my reply is as under :- (1) YES. (2) YES Being already registered as regular taxable person, your client cannot fall in the definition of 'casual taxable person' who supplies the services 'occasionally'. - Reply By Padmanathan Kollengode - The Reply = Kasturi sir, I humbly disagree with your ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... views. Casual Taxable Person is defined as: (20) 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; On plain reading of the ENTIRE definition, it appears that occasional supply is in a state where he has no fixed place of business. Further, you maybe well aware, under GST registration is State-wise and each registration is distinct person. Here, the querist is only registered in Delhi but does not have a fixed place of business in UP. The querist is occasionally undertaking tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... saction involving supply in UP/Haryana Therefore, he satisfies the definition of casual taxable person. - Reply By KASTURI SETHI - The Reply = Sh.Padmanathan Kollengode Ji, In this context, please read an article written by Dr.Sanjiv Agarwal M.Com, FCA, FCS, ACIS(UK), PhD, D.Litt. The article is titled as 'Professionals Not To Be Treated As Casual Persons Under GST' . It was published on 15.5.2017 in TMI. Emphasis is laid second last para of the article. The definition of 'Casual Taxable Person' and 'Fixed Establishment' remains the same. - Reply By Padmanathan Kollengode - The Reply = Sri Kasturi Ji, I am still not convinced as the factual matrix in the query is differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent from those mentioned in the article you have mentioned. Anyway let us have the opinion of other experts including Shilpi Maam, Amit Ji, Alkesh ji - Reply By KASTURI SETHI - The Reply = Yes. I am also eagerly waiting for their opinions. - Reply By GUNASEKARAN K - The Reply = Special provisions of GST Registration for casual taxable person and non-resident taxable person A casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. Section 24 provides for special provisions relating to casual taxable persons and non-resident taxable persons under GST. Casual/non-resident taxable person may obtain a temporary registration for a period of 90 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days (extendable for additional 90 days). A person who obtains registration u/s 24 , will be required to make an advance deposit of GST (based on his estimated tax liability). - Reply By GUNASEKARAN K - The Reply = Long running exhibitions: In case of long running exhibitions (i.e. beyond 180 days), the taxable person must obtain normal registration and should not obtain registration as a casual taxable person. Copy of the allotment letter granting him permission to use the premises for exhibition is considered as proof of Place of Business. Once the exhibition is over, the registration can be surrendered. [ Ministry of Finance Circular No. 71/45/2018-GST dated 26.10.2018 ]. Hence my conclusion, A Regular Taxpayer from One State c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an obtain registration as Casual Tax Payer in other state. - Reply By Lalitha Krishnamurthy - The Reply = Am deeply grateful to all the experts who have responded to my query. Going by the definition of casual taxable person and the factual matrix in my case, is it possible for the department to take a view that registration as CTP is necessary, and that the service cannot be deemed as an interstate supply? - Reply By GUNASEKARAN K - The Reply = If you opt for Casual Tax Payer in UP Haryana separately the place of supplies are intra-state then CGST SGST applicable. You have deposit the applicable GST in advance. Refund for Casual Taxable Person After all of the returns have been filed, the excess tax paid in adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance can be returned when filing for the surrender of registration. CTP is eligible for a refund of any amount placed in excess of tax liability, which will be refunded once all required returns for the Registration period have been submitted. Form GST RFD-01 , under the category Refund of excess balance in the electronic cash ledger, can be used to request a refund of the amount in excess of tax liability in the electronic cash ledger. - Reply By Amit Agrawal - The Reply = I agree with views of Shri Padmanathan Ji at Serial No. 6 above. One also needs to take note of sub-section (a) as as well as (b) of Section 12(5) of the IGST Act, 2017 in the context of the factual matrix of the query raised while determining type ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of taxes to be charged from 'Location registered in UP / Haryana as 'Casual Taxable Person''. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Place of supply and Registration for Training Services - Query Started By: - Lalitha Krishnamurthy Dated:- 7-8-2023 Goods and Services Tax - GST - Got 14 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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