Comprehensive Guide to GST Section 48 and the Role of GST Practitioners in India

Section 48 of the CGST Act, 2017, serves as the legal foundation for Goods and Services Tax Practitioners (GSTPs) in India, enabling a structured mechanism to assist taxpayers in GST compliance. Introduced with the GST rollout on July 1, 2017, this section, supported by Rules 83 to 84 and various prescribed forms, outlines the eligibility criteria, functions, duties, and enrolment procedures for GSTPs. While GSTPs can file various returns, make deposits, claim refunds, and amend registrations on behalf of taxpayers, the responsibility for the accuracy of such filings remains with the registered person.

The framework also includes mandatory exams for certain GSTPs, mechanisms for disqualification or voluntary surrender, and conditions for representing clients before GST authorities. With ongoing amendments, like the omission of inward supply details from their authorized functions, Section 48 remains a dynamic and critical element of India’s GST ecosystem.

Navigating the GST Landscape: A Deep Dive into Section 48 and the Role of GST Practitioners

The Goods and Services Tax (GST) regime in India, effective from July 1, 2017, brought with it a paradigm shift in the country’s indirect tax structure. To facilitate compliance and ease of doing business, the concept of a Goods and Services Tax Practitioner (GSTP) was introduced. Section 48 of the Central Goods and Services Tax (CGST) Act, 2017, along with its associated rules and forms, lays down the comprehensive framework governing these professionals. This article aims to provide a detailed overview of GST Section 48, encompassing the eligibility, functions, and responsibilities of GST Practitioners.

Section 48: The Bedrock of GST Practitioners

Section 48 of the CGST Act, 2017, came into force on July 1, 2017, via Notification No. 9/2017-Central Tax. It essentially empowers the government to prescribe the framework for GST practitioners. Let’s break down its subsections:

Section 48(1): Defining the Framework

This subsection is the enabling provision. It states that the “manner of approval of goods and services tax practitioners, their eligibility conditions, duties and obligations, manner of removal and other conditions relevant for their functioning shall be such as may be prescribed.” This grants the government the authority to lay down detailed rules for every aspect of a GSTP’s existence, ensuring a structured and regulated environment for these professionals.

Section 48(2): Authorizing Functions (with a notable amendment)

This subsection outlines the core functions a registered person may authorize an approved GSTP to perform. These include:

• Furnish details of outward supplies under Section 37: This refers to filing GSTR-1, which provides details of sales made by a registered person.
• Furnish details of inward supplies under Section 38: (Note: This part of the subsection was omitted with effect from October 1, 2022, by the Finance Act, 2022, read with Notification No. 18/2022-Central Tax.) Originally, GSTPs could also furnish details of purchases (GSTR-2), but this function has since been removed.
• Furnish the return under Section 39, Section 44, or Section 45: This covers various types of GST returns, including monthly/quarterly returns (GSTR-3B), annual returns (GSTR-9), and final returns (GSTR-10).
• Perform such other functions in such manner as may be prescribed: This clause provides flexibility, allowing the government to add more functions to the GSTP’s ambit through rules as needed.

The omission of furnishing inward supply details from Section 48(2) signifies a shift in the responsibility for this specific task back to the registered person or their direct employees.

Section 48(3): Unwavering Responsibility of the Registered Person

This crucial subsection emphasizes that despite a GSTP furnishing details or returns on behalf of a registered person, the ultimate responsibility for the correctness of any particulars furnished continues to rest with the registered person. This provision is vital as it prevents registered persons from shifting the blame for inaccurate filings entirely to their GSTPs, ensuring due diligence on their part.

Relevant Rules and Forms: The Operational Details

The broad principles laid down in Section 48 are fleshed out in detail through various rules and forms.

Rule 83: Provisions Relating to a Goods and Services Tax Practitioner

Rule 83 is the cornerstone for GSTPs, covering their eligibility, enrolment, and the activities they can undertake.

Eligibility Conditions (Rule 83(1)): To be enrolled as a GSTP, an applicant must meet certain basic and professional criteria:

1. Basic Conditions:
   • Citizen of India.
   • Person of sound mind.
   • Not adjudicated as insolvent.
   • Not convicted by a competent court for an offense with imprisonment of not less than two years.
2. Professional Conditions (any one of the following):
   • A retired officer of the Commercial Tax Department of any State Government or of the Central Board of Indirect Taxes and Customs (CBIC), who held a post not lower than a Group-B gazetted officer for a minimum of two years.
   • Enrolled as a sales tax practitioner or tax return preparer under existing law for at least five years.
   • Possesses a graduate or postgraduate degree (or its equivalent) in Commerce, Law, Banking (including Higher Auditing), Business Administration, or Business Management from an Indian University or a recognized Foreign University.
   • Has passed the final examination of the Institute of Chartered Accountants of India, the Institute of Cost Accountants of India, or the Institute of Company Secretaries of India.

Enrolment Process (Rule 83(2) and Forms):

• FORM GST PCT-01: Application for Enrolment as Goods and Services Tax Practitioner: An eligible person applies electronically through the common portal. This form captures personal details, professional qualifications, and declarations.
• FORM GST PCT-02: Enrolment Certificate of Goods and Services Tax Practitioner: Upon successful scrutiny and inquiry, the authorized officer enrolls the applicant and issues this certificate.
• FORM GST PCT-04: Order of rejection of enrolment as GST Practitioner: If the application is rejected, this form is used to communicate the reasons for rejection.

Validity of Enrolment and Examination (Rule 83(3)):

1. Enrolment is generally valid until cancelled.
2. However, specific categories of GSTPs (e.g., those enrolled as sales tax practitioners or tax return preparers) are required to pass an examination within a prescribed period (currently, it was 30 months from the appointed date for those enrolled before July 1, 2018).

Disqualification and Removal (Rule 83(4) and (5)):

FORM GST PCT-03: Show Cause Notice for disqualification: If a GSTP is found guilty of misconduct, a show cause notice is issued.

After an opportunity of being heard, the authorized officer may, by order in FORM GST PCT-04, disqualify the GSTP from functioning.

An appeal against such an order can be made to the Commissioner within thirty days.

Duties and Obligations (Rule 83(7) and (8)):

When a GSTP furnishes a statement on behalf of a registered person, a confirmation (via email or SMS) is sought from the registered person. The statement is processed only after the registered person provides consent.

Activities a GSTP can undertake (Rule 83(8)):

• Furnish details of outward supplies (GSTR-1).
• Furnish monthly, quarterly, annual, or final returns (GSTR-3B, GSTR-9, GSTR-10).
• Make deposits for credit into the electronic cash ledger.
• File claims for refund.
• File applications for amendment or cancellation of registration.
• Furnish information for generation of e-way bills.
• Furnish details of challans in FORM GST ITC-04.
• File applications for amendment or cancellation of enrolment under Rule 58.
• File intimations to pay tax under the composition scheme or withdraw from it.

Crucially, for refund claims, amendment/cancellation of registration applications, or composition scheme intimations submitted by a GSTP, the registered person’s confirmation is mandatory before further processing.

Rule 83A: Examination of Goods and Services Tax Practitioners

This rule delves into the specifics of the examination for GSTPs, often conducted by the National Academy of Customs, Indirect Taxes & Narcotics (NACIN). Key aspects include:

• The examination is conducted periodically (typically twice a year).
• It is mandatory for certain categories of GSTPs to pass this exam to continue their enrolment.
• Details regarding the syllabus, examination fees, and registration procedures are notified by NACIN.

Rule 83B: Surrender of Enrolment of Goods and Services Tax Practitioner

This rule provides the mechanism for a GSTP to voluntarily surrender their enrolment.

• FORM GST PCT-06: Application for Cancellation of Enrolment as Goods and Services Tax Practitioner: A GSTP seeking to surrender their enrolment submits this application electronically.
• FORM GST PCT-07: Order of Cancellation of Enrolment as Goods and Services Tax Practitioner: After inquiry, the Commissioner or authorized officer may cancel the enrolment.

Rule 84: Conditions for Purposes of Appearance

Rule 84 stipulates the conditions under which a GSTP can represent a registered or unregistered person before any GST authority.

• A person must be enrolled under Rule 83 to attend proceedings as a GSTP.
• When appearing, the GSTP must produce a copy of the authorization given by the person they are representing in FORM GST PCT-05: Authorisation / withdrawal of authorisation for Goods and Services Tax Practitioner. This form is crucial for formalizing the relationship between the registered person and their GSTP.

Conclusion

Section 48 of the CGST Act, along with Rules 83, 83A, 83B, and 84, and the associated PCT forms, creates a robust framework for Goods and Services Tax Practitioners in India. These provisions ensure that only qualified individuals can act as GSTPs, empowering them to assist taxpayers with various compliance functions while firmly placing the ultimate responsibility for accuracy on the registered person.

The continuous evolution of the GST law, as seen with the amendment to Section 48(2), highlights the dynamic nature of this framework and the need for GSTPs to stay updated to effectively serve their clients.

FAQs on Section 48 of CGST Act

What is Section 48 of the CGST Act, 2017?
Section 48 empowers the government to prescribe the manner and conditions for the approval, duties, and removal of Goods and Services Tax Practitioners (GSTPs).

Who is a GST Practitioner under GST law?
A GST Practitioner (GSTP) is a tax professional authorized to assist taxpayers in GST compliance activities like filing returns, making payments, and submitting applications.

When was Section 48 of the CGST Act made effective?
Section 48 came into effect on July 1, 2017, through Notification No. 9/2017-Central Tax.

What are the eligibility conditions for becoming a GST Practitioner?
The applicant must be a citizen of India, of sound mind, not adjudged insolvent, and not convicted for offenses with imprisonment of two years or more. They must also meet one of the prescribed professional qualifications.

What professional qualifications are required to become a GST Practitioner?
The applicant must be a retired tax officer, a former sales tax practitioner/tax return preparer with at least five years of experience, or possess a degree in Commerce, Law, Banking, or Management. Alternatively, they may have passed the final exam of ICAI, ICSI, or ICMAI.

Which form is used to apply for enrolment as a GST Practitioner?
FORM GST PCT-01 is used to apply online for enrolment as a GST Practitioner.

What is FORM GST PCT-02?
FORM GST PCT-02 is the Enrolment Certificate issued to a person who qualifies and is approved as a GST Practitioner.

Can a GST Practitioner be disqualified?
Yes, if found guilty of misconduct, a GSTP may be disqualified after being issued a show cause notice in FORM GST PCT-03 and an order in FORM GST PCT-04.

Can a GST Practitioner surrender their enrolment voluntarily?
Yes, a GSTP can surrender their enrolment by submitting FORM GST PCT-06. Upon approval, cancellation is issued through FORM GST PCT-07.

What functions can a GST Practitioner perform?
GSTPs can file GSTR-1, GSTR-3B, GSTR-9, GSTR-10, claim refunds, pay tax, file registration amendments, submit composition scheme forms, generate e-way bills, and file challan details.

Is furnishing inward supply details still part of GSTP functions?
No, this function was removed from Section 48(2) effective October 1, 2022, through the Finance Act, 2022.

Does the taxpayer remain responsible for filings done by the GST Practitioner?
Yes, the taxpayer holds ultimate responsibility for the accuracy of all details and returns submitted, even if filed by a GSTP.

Is there an exam for GST Practitioners?
Yes, certain categories of GSTPs are required to pass an exam conducted by NACIN to continue their enrolment.

Who conducts the GST Practitioner examination?
The National Academy of Customs, Indirect Taxes and Narcotics (NACIN) conducts the GSTP exam.

What happens if a GST Practitioner fails the exam?
If a required GSTP does not pass the exam within the prescribed time (initially 30 months), their enrolment becomes invalid.

Can a GST Practitioner represent a taxpayer before GST authorities?
Yes, provided they are authorized through FORM GST PCT-05, they can appear before GST officers or authorities on behalf of a taxpayer.

How does a registered person authorize a GST Practitioner?
A registered person must submit FORM GST PCT-05 to formally authorize or withdraw authorization of a GSTP.

Is confirmation required for actions taken by a GSTP?
Yes, the system sends a confirmation request via email or SMS to the registered person, and the action is processed only upon their consent.

Can a GST Practitioner amend or cancel GST registration on behalf of a taxpayer?
Yes, GSTPs can file for amendment or cancellation of registration, but the taxpayer’s confirmation is mandatory.

What is the role of Rule 83 under CGST Rules?
Rule 83 provides the detailed framework for enrolment, functions, disqualification, and duties of GST Practitioners.

What is Rule 83A related to?
Rule 83A governs the examination for GST Practitioners, laying down the process, authority, and requirements for passing the exam.

What is Rule 83B about?
Rule 83B outlines the procedure for voluntary surrender of GSTP enrolment.

What is Rule 84 under CGST Rules?
Rule 84 specifies the conditions for a GSTP to appear before GST authorities on behalf of a client.

How long is a GST Practitioner’s enrolment valid?
Enrolment remains valid until it is cancelled or surrendered, subject to compliance with examination and conduct requirements.

Can a GST Practitioner assist both registered and unregistered persons?
Yes, a GSTP may assist any person, but authorization is essential to act on behalf of a registered taxpayer.

Is there any fee for enrolling as a GST Practitioner?
Currently, there is no government fee for enrolment, but exam fees and other service charges may apply as notified.