Frequently Asked Questions on Goods & Services Tax
Q1. What are the opportunities available for Company Secretaries under the Goods and Services Tax regime?
Ans. Under Goods and Services Tax, a Company Secretary has the following
opportunities:
To act as a GST Practitioner
Under Section 48 of the 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 the 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 suppliers.
Maintaining e-Tax ledgers for suppliers and keeping reconciliation up to date, also conducting internal checks in the entity of the supplier to reconcile E-Tax Ledgers.
Vetting legal documents and drafting agreements, etc. also requires professional skills. A Company Secretary possesses the acumen to assist in drafting legal documents of the likes of replies to show cause notice, representation at appellate forums, representations before adjudicating authority, and providing opinions and clarifications.
Q2. 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 the 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 over 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 the invoice relating to such excess amount.
Explanation.––For the purposes of clauses (a) and (b)––
(i) 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.
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