Frequently Asked Questions on Goods & Services Tax by ICSI

1. What are the opportunities available for Company Secretaries under Goods and Services Tax regime?

Ans. Under Goods and Services Tax, a Company Secretary has the following opportunities:

• To act as a GST Practitioner

Pursuant to Section 48 of Central Goods & Services Tax Act, 2017 read with Rule 83(1) of Central Goods and Services Tax Rules, 2017, 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(2)(c) of Central Goods & Services Tax Act, 2017, read with Rule 84 of Central Goods & Services Tax Rules, 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:-

• Comprehensively interpret the law and provide complete guidance and advisory services to the entities.
• Provide guidance on appropriate tax planning to the client.
• Proper record keeping and maintaining systematic records of credit of input/input service and its proper utilization etc.
• Reconciliation of mismatch in sales and purchases details with Electronic Credit Ledger, Electronic Cash Ledger and Electronic Liability Register maintained by GSTN with the books of accounts of supplier.
• Maintaining e-Tax ledgers for suppliers and keeping reconciliation up to date, also conducting internal check in the entity of the supplier to reconcile E-Tax Ledgers.
• Vetting of legal documents and drafting agreements, etc. also requires professional skills. A Company Secretary possesses acumen to assist in drafting legal documents of the likes of replies to show cause notice, representation at appellate forums, representations before adjudicating authority, providing opinions and clarifications.

2. If a Company Secretary provides a service for which the invoices have not been issued within 30 days of the date of service, what will be the time of supply?

Ans. 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 Central Goods & Services Tax Act, 2017 which states that the time of supply will be earliest of the following dates, namely:

(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under section 31 or the date of receipt of payment, whichever is earlier; or

(b) the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or

(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply:

Where the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount.

Explanation.––For the purposes of clauses (a) and (b)––

• the supply shall be deemed to have been made to the extent it is
• covered by the invoice or, as the case may be, the payment;
• (ii) “the date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.

3. How services provided by a professional as a Company Secretary would be taxed?

Ans. As per the information available in the service rate list under GST, professional services seek to fall under the rate of 18%.

4. The aggregate turnover of a Company Secretary in Practice is less than the threshold limits but he has clients across different states. Does he need to get registered under GST?

Ans. Section 22 of the Central Goods & Services Tax Act, 2017 specifies the person liable for registration. Pursuant to this, liability to pay tax arises when the taxable person crosses the turnover threshold. Further, section 24 of the Central Goods & Services Tax Act, 2017 specifies the categories of persons who are specifically required to take registration even if they are not covered under sub-section (1) of 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 Company Secretary in Practice needs to take registration, since he is providing interstate supply of taxable services.

5. How can a Company Secretary become a GST Practitioner?

Ans. A professional desirous of becoming a GST Practitioner has to submit an application in the form GST PCT-01. The application shall be scrutinised and GST Practitioner certificate shall be granted in the form GST PCT-02. In case, the application is rejected, proper reasons shall have to be mentioned in the form GST PCT-4. The enrolment once done shall remain valid till it is cancelled.

6. What all activities can be performed by a CS Professional as a GST Practitioner?

Ans. 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;

(v) file an application for amendment or cancellation of registration;

(vi) furnish information for generation of e-way bill;

(vii) furnish details of challan in FORM GST ITC-04;

(viii) file an application for amendment or cancellation of enrolment under rule 58; and

(ix) file an intimation to pay tax under the composition scheme or withdraw from the said scheme

(x) Appear as an authorized representative before any officer of department, Appellate authority or Appellate Tribunal on behalf of registered person.

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 or where an intimation to pay tax under composition scheme or to withdraw from such scheme has been submitted by the Goods and Services Tax Practitioner authorised by the registered person, a confirmation shall be sought from the registered person and the application submitted by the said practitioner shall be made available to the registered person on the common portal and such application shall not be further proceeded with until the registered person gives his consent to the same.

7. How can a Company Secretary surrender his enrolment of GST Practitioner?

Ans. A Goods and Services Tax Practitioner seeking to surrender his enrolment shall electronically submit an application in FORM GST PCT-06, at the common portal, either directly or through a facilitation centre notified by the Commissioner.

The Commissioner, or an officer authorised by him, may after causing such enquiry as deemed fit and by order in FORM GST PCT-07, cancel the enrolment of such practitioner.

8. If a Practising Company Secretary supplies taxable services to an unregistered person, what will be the place of supply?

Ans. The place of supply of services where location of supplier and recipient is in India is governed under section 12 of the Integrated Goods & Services Tax 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 and location of the supplier of services in any other case.

9. What is the provision of Invoice if a registered taxable Practicing Company Secretary is providing continuous supply of service?

Ans. As per section 31(5) of Central Goods and Service Tax Act, 2017, subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of services,–

(a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment;

(b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment;

(c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.

10. What is the Service Accounting Code for a Practising Company Secretary?

Ans. Under the GST regime, there is no code for service provider but codes are in accordance to the services provided. The following is a list of few services provided by Practising Company Secretaries and their SAC Codes may be used, as follows: