GOODS AND SERVICE TAX PRACTITIONERS

[Mr. M. GOVINDARAJAN]

Similar to that of income tax act and indirect taxes acts, the CGST Act, 2017 provides for the authorization of an eligible person to act as GST practitioners.

Rule 24 of Returns (revised) Rules provides the provisions relating to a goods and service tax practitioner.

Eligibility

Rule 24 (1) gives the eligibility conditions for a GST practitioner which are detailed as below-

• he is a citizen of India;
• he is a person of sound mind;
• he is not adjudicated as insolvent;
• he has not been convicted by a competent court for an offence with imprisonment not less than two years

and satisfies of the following conditions-

• that he is a retired officer of the Commercial Tax Department of any State Government or of the Central Board of Excise and Customs, Department of Revenue, Government of India, who, during his service under the Government, had worked in a post not lower in rank than that of a Group – B gazette officer for a period of not less than two years; or
• he has passed-

• a graduate or post graduate degree or its equivalent examination having a degree in commerce, Law, Banking including Higher Auditing, or Business Administration or Business Management from any Indian University established by any law for the time being in force; or
• a degree examination of any Foreign University recognized by any Indian University as equivalent to the degree examination mentioned in above clause; or
• any other examination notified by the Government for this purpose; or
• any degree examination of an Indian University or of any Foreign University recognized by any Indian University as equivalent of the degree examination and has also passed any of the following examinations, namely.-

• final examination of the Institute of Chartered Accountants of India; or
• final examination of the Institute of Cost Accountants of India; or
• final examination of the Institute of Company Secretaries of India.

Procedure for enrolment

The following is the procedure for enrolment as a GST practitioner-

• A person who is eligible to act as GST practitioner may make an application in Form GST PCT – 1 to the officer authorized in this behalf for enrolment of GST practitioner;
• On receipt of the application, the authorized officer shall, after making such enquiry as he considers necessary, either enroll the applicant as a GST practitioner and issue a certificate to that effect in Form GST PCT – 2 or reject his application where it is found that the applicant is not qualified to be enrolled as a GST practitioner.

Validity of certificate

The enrolment made shall be valid until it is cancelled.

Disqualification

If any GST practitioner is found guilty of misconduct in connection with any proceedings under the Act, the authorized officer may, by order, in Form GST PCT direct that he shall henceforth be disqualified under Section 48 of the Act.  Such order shall be passed only after giving him a notice to show cause in Form GST PCT against such disqualification and after giving him a reasonable opportunity of being heard.

Against the said order any person may file appeal to the Commissioner against such order.  Such appeal shall be filed within 30 days from the date of the order.

List of GST practitioners

A list of GST practitioners shall be maintained in common portal in Form GST PCT – 5.  The authorized officer may make such amendments to the list as may be necessary from time to time, by reason of any change of address or death or disqualification of any GST practitioner.

Authorization

Section 48(2) of the Act provides that  a registered person may authorize an approved GST practitioner to furnish the details of outward supplies, the details of inwards supplies and the return under Section 39 or Section 44 or Section 45 in such manner as may be prescribed.    Rule 24(7) provides that any registered person may, at  his option, authorize a GST practitioner on the Common Portal in Form GST PCT – 6 or at any time, withdraw such authorization in Form GST PCT – 7 and the GST practitioner so authorized shall be allowed to undertake such tasks as indicated in Form GST PCT – 6 during the period of authorization.

Where a statement required to be furnished by a registered person has been furnished by the GST practitioner authorized by him, a confirmation shall be sought from the registered person over email or SMS.  The statement furnished by the GST practitioner shall be made available to the registered person on the Common Portal.  Where the taxable person fails to respond to the request for confirmation till the last date of furnishing such statement, it shall be deemed that he has confirmed the statements furnished by the GST practitioner.

A registered person opting to furnish his return through a GST practitioner shall give his consent in Form GST PCT – 6 to any GST practitioner to prepare and furnish such return and before confirming submission of any statement prepared by the GST practitioner, ensure that the facts mentioned in the return are true and correct before signature.  Section 48(3) provides that the responsibility for correctness of any particulars furnished in the return or other details filed by the GST practitioner shall continue to rest with the registered person on whose behalf such return and details are furnished.

An accountant or a GST practitioner attending on behalf of a registered person or an un-registered person in any proceedings under the Act before any Authority shall produce before such authority, if required, a copy of the authorization given by the taxable person or person in From GST PCT – 6.

Activities by GST practitioner

Rule 24(9) provides that a GST practitioner can undertake any or all of the following activities on behalf of a registered person, if so authorized by the registered person to-

• furnish the details of outward and inward supplies;
• furnish monthly, quarterly, annual or final return;
• make deposit for credit into the electronic cash ledger;
• file a claim for refund; and
• file an application for amendment or cancellation of a registration.

The GST practitioner shall prepare the statements with due diligence and affix his digital signature on the statements prepared by him or electronically verify using his credentials.  For this purpose he has to get digital signature.

Conditions for purposes of appearance

Rule 25 provides that no person shall be eligible to attend before any authority, as a GST practitioner, in connection with any proceedings under the Act on behalf of any registered person or an un-registered person unless his name has been entered in the list maintained in Common Portal. 

Discussions to this article

[KASTURI SETHI]

Sir,. Very informative and educative article. Thanks for enrichment.

[Ganeshan Kalyani]

Everything is transparent under GST now. Delcaring the GST practitioner name in the common portal means authority can find out which is under which consultant.

Further, a point of concern is the accountability of the information submited. It implies that the mistake of consultant should also be shouldered by the assessee. In my view some accountability should be cast on them as well. I welcome views of my collegue experts. Thanks.

[KASTURI SETHI]

Consultant/Advocate/CA etc. work on behalf of assessee. Assessee is responsible for his/her data.

[Ganeshan Kalyani]

Agreed with you Sri Kasturi Sir. I had experienced where a consultant had filed the annual return based on the data given by his client. Since the consultant keeps all the final papers with him in his office, the client did not asked for the final copy of return for his record. Later, at the time of assessment, it was pointed by assessing officer that the annual return was filled up with errors. The summary statement given by the client and the annual return has variances. At the time it was learnt that consultant had committed mistake in filling up the form. (I assume, consultant's staff may have filled up the form). The consultant agreed to the mistake and filed corrigendum with the assessing officer. And the case went ahead for assessment.

In the above situation, the hardship which the client had faced in initial assessment hearing is because of the mistake committed by the consultant.

Only in such situation where client has given proper data but the forms were not filled up the consultant should be bestowed with some responsibility. otherwise, whatever data given by client and as it is uploaded by consultant, the primary responsibility is with the client, i agree.

[Ganeshan Kalyani]

Keeping these concern into mind the authority may have drafted the GST provision which requires the assesse to view/confirm the data uploaded by GST practissioner. Thus the possibility of error on the side of consultant would be avoided.

[KASTURI SETHI]

Dear Sir, What I have observed professionals seldom commit error. Assessees cause delay in submission of data/ or information. Most of the assessees submit docs on the last date. This is practical situation.

[Rakesh Chitkara]

Kasturi Sethi Sir states that most of the assessees submit docs on the last date. Most of the bars announce Happy Hours for those who order early (Buy 1 Beer Get One Free). Beauty Parlours too offer 50% discounts if the lady enters before the cut-off time for grooming and to look prettier. The Airlines & Hotels do it. Railways have now started raising prices by 10% after every 10% booking by passengers in premium trains. Sethi Sir should experiment giving freebies like a movie ticket for the family to the client who sends the data early. Additional Pop Corns if he does it the second time !!

[KASTURI SETHI]

Sh.Rakesh Chitkara Ji,. Dear Sir,. These are so-called freebies practised by every department of Govt. Govt. Calls it surcharge actually it is imposable penalty. Penalty will be imposed only if payment is late. So thses freebies are an eye wash. It tantamounts to 'sale' . First increase the price and thereafter give the discount to the buyer. Thus shopkeepers/dealers befool the public. It is a fact. However, I agree with you it can click. But my e-filing return charges are already equal to freebies. I do consultancy with an aim to remain busy and update my knowledge. I give free consultancy on phone to everybody but if advice is to be given in writing then I charge reasonable fee because too much labour is involved. Any your idea is good and worth implementation. Thanks & Regards.

[Saurabh Rairikar]

Respected all,

First and foremost, Mr. M. Govindrajan has to be congratulated for his tireless effort in enlightening us with the issues that keep nudging our brains (busy brains rather) and for providing instant references to the Law. Thank You sir.

Concerning the issues raised, section 48 of the Act penalizes the defaulter practitioner by disqualification and striking off his name from the list of practitioners by authorized officer. That sounds sufficient penalty.As far as deciding of the guilt of GST practitioner is concerned, authorized officer (presumed to be independent) has the duty to adjudicate. So aggrieved assessee has a remedy here to file a complaint with the authorized officer. Further, remedies under various other legislation (CA Act, Advocates Act, Consumer Forums etc) are also available with the assessees.

But to enlighten you all, these are the paths seldom taken by the assessees for goods reasons better known to them.

Hope this contributes to knowledge (and avoids unnecessary and unintended scrabble)

[Ganeshan Kalyani]

Sri Kasturi Sir agreed with your views. Lot of unorganized people come on last day to file their return. Causing delay. It aslo becomes difficult to check the correctness of the their return.

[KASTURI SETHI]

Sh.Kalyani Ji,. Will you believe one of my clients lost five lakhs because he always submitted docs on last date. However, he did not blame me because I always issue reminder in advance before the last date.

[Yogesh Shah]

Hi, Where to submit application for GST TRP? Is there any application centre in mumbai or we have to submit online? Is there any mandatory training to be done?

Please reply?