Well established is the fact that when it comes to the directed, goal oriented and rightly spirited implementation of a legal reform in the country, the Company Secretaries are apt professionals to ensure proficient and faultless application of each and every provision of that reform. In the gamut of GST also, professional excellence of the Company Secretaries would surely pave the way for optimum realization of opportunities while remarkably tackling the challenges of this momentous reform of indirect taxation system of the country. Check more details for “Opportunities for CS in GST, How can CS become a GST Practitioner?” from below…
Opportunities for CS in GST
What are the opportunities available for Company Secretaries under Goods and Services Tax regime?
Under Goods and Services Tax, a Company Secretary has the following opportunities:
To act as a GST Practitioner – Pursuant to Section 48 of CGST Act, 2017 read with Rule 24 of the Return Rules, any person who has passed the final examination of the Institute of Company Secretaries of India (ICSI) is eligible for enrolment as a Goods and Service Tax Practitioner
To represent before the Appellate Authority
Under Section 116 of Central GST Act, 2017, a Company Secretary is entitled to appear before an officer appointed under this Act, or the Appellate Authority or the Appellate Tribunal in connection with any proceedings under this Act.
In addition to the above, the Company Secretary may also perform the following types of services under GST:-
- A Company Secretary can comprehensively interpret the law and provide complete guidance and advisory to the business entities.
- A Company Secretary can help in providing guidance on proper tax planning to the client.
- Like any other tax laws, GST would also require proper record keeping and maintaining systematic records of credit of input/input service and its proper utilization etc. Company Secretaries have competent skills to perform these tasks.
- Vetting of legal documents and drafting agreements, etc. also requires professional skills. Company Secretary possess acumen in this area and could assist in drafting legal documents like replies to show cause notice, representation at appellate forums, representations before adjudicating authority, opinions and clarifications.
If a Company Secretary provides a service for which the invoices has not been issued within 30 days of the date of service, what will be the time of supply?
A Company Secretary provides various services to his clients. Determination of time of supply is of immense importance as it helps in determining value of tax and date of payment of tax.
In the above case, the time of supply will be determined as provided in Section 13(2) of the CGST Act, 2017 which states that the time of supply will be earliest of the following:
- the date of issue of invoice or
- the date of receipt of payment
Rule 24 of the Return rules, provides the eligibility conditions to get enrolled as GST Practitioner. Any person who
How services provided by a professional as a Company Secretary would be taxed?
As per the information available in the service rate list under GST, professional services seek to fall under the rate of 18%
A Practicing Company Secretary whose aggregate turnover is less than the threshold limits but have clients across different states. Does he need to get registration under GST?
Section 22 of the CGST Act, 2017 specifies the person liable for registration. Pursuant to this, liability to pay tax arises when the taxable person crosses the turnover threshold of Rs. 20 lakhs (Rs. 10 lakhs for NE & Special Category States). Further, section 24 of the CGST Act, 2017 list categories of persons who are specifically required to take registration even if they are not covered under section 22 of the said Act. Section 24(i) specifically states that a person who makes interstate taxable supply is required to take registration under GST.
Thus even if aggregate turnover is less than the threshold limit, a Practicing Company Secretary needs to take registration, since he is providing interstate supply of taxable services.
How can a Company Secretary become a GST Practitioner?
A Professional who is desirous of becoming a GST Practitioner has to submit an application in the form GST PCT-1. The application shall be scrutinised and GST Practitioner certificate shall be granted in the form GST PCT-2. In case, the application is rejected, proper reasons shall have to be mentioned in the form GST PCT-4. The enrolment once done remains valid till it is cancelled. But no person enrolled as a Goods and Services Tax Practitioner shall be eligible to remain enrolled unless he passes such examination conducted at such periods and by such authority as may be notified by the Commissioner on the recommendations of the Council. Any person who has been enrolled as Goods and Services Tax Practitioner by virtue of him being enrolled as a sales tax practitioner or tax return preparer under the existing law shall remain enrolled only for a period of one year from the appointed date unless he passes the said examination within the said period of one year.
What all activities can be performed by a CS Professional as a GST Practitioner?
A Goods and Services Tax Practitioner can undertake any or all of the following activities on behalf of a registered person:
- i. furnish details of outward and inward supplies
- ii. furnish monthly, quarterly, annual or final return
- iii. make deposit for credit into the electronic cash ledger
- iv. file a claim for refund and
- v. file an application for amendment or cancellation of registration.
But it has been provided that a confirmation from a registered person shall be sought where an application relating to a claim for refund or an application for amendment or cancellation of registration has been submitted by the goods and services tax practitioner.
If a Practicing Company Secretary supply taxable services to an unregistered person, what will be the place of supply?
The place of supply of services where location of supplier and recipient is in India is governed under section 12 of the IGST Act, 2017. The section specifically provides that if services are supplied to an unregistered person, the place of supply will be location of recipient where address on records exist or location of the supplier of services in any other case.
What is the provision of Invoice if a registered taxable Practicing Company Secretary is providing continuous supply of service?
If a registered taxable Practicing Company Secretary is providing continuous supply of service to his clients, where successive statements of accounts or successive payments are involved, invoice can be raised before or at the time each such statements is issued or, as the case may be, each such payment is received.