A lot of chartered accountants in India have also started offering such specialized services and engaging any professional agency for guidance on matters related to the tax will be advantageous for a business owner. The most compelling reasons for doing so are being listed here apart from all relevant information about who qualifies to be a consultant in the new field.
It will be pertinent for a businessperson to possess all the relevant information about who can practice as a registered consultant so that the most appropriate person/agency can be hired for advice on matters related to the new tax. Let’s take a look at the criteria that need to be met by all GST consultants in India.
Who Qualifies As A GST Consultant?
Any person fulfilling the specified conditions and qualifications can register with the government and work as a GST practitioner. Let’s take a look at all the requirements that need to be fulfilled by anyone wishing to become a consultant in this new domain.
Conditions For Becoming A GST Consultant
Any person wishing to be a GST practitioner in India must fulfil the following conditions :
1. The person must be a resident of India.
2. Anyone intending to be a GST consultant must be in possession of sound mental faculties.
3. He/She should not have been declared as an insolvent.
4. The person should not have been convicted of any such legal offence that required imprisonment for a period of two years or more.
Necessary Qualifications For Becoming A GST Consultant
Anyone fulfilling the above conditions can become a GST practitioner if he/ she can be defined as a person belonging to either of the following categories :
1. Any retired officer of the Commercial Tax Department of any State Government or of the Central Board of Excise and Customs, who held a post not lower in rank than that of a Group-B gazetted officer, for a period of not less than two years.
2. A graduate or postgraduate degree holder in commerce, law, banking including higher auditing, or business administration or Business management from any Indian university or a recognized foreign university.
3. Anyone who has been registered for more than 5 years as a tax return preparer or a sales tax practitioner.
4. Any person qualified to work as a chartered accountant, company secretary or cost and management accountant.
Reasons For Hiring GST Practitioners
Some of the most important reasons for hiring GST consulting services in India are being listed below.
1. Prompt Filing Of GST Returns
One of the most important aspects of the new tax regime is filing of returns even if no significant business activity occurred in the period for which the returns are being submitted. A failure to pay on time will result in penalties which is not desired by any business and engaging professional services will be helpful in avoiding such problems. Professional agencies follow all the announcements made by the regulatory authorities and help their clients in completing the formalities before the due date. There are various monthly, quarterly and annual returns which need to be filed and it is difficult for entrepreneurs like small business owners to keep track of multiple dates and hiring professionals will provide relief.
2. Understanding The Complexities Of The New Regime
The new tax regime has some inherent complexities which necessitate the engagement of professionals who can be helpful in clearing the resultant confusion. There are multiple tax slabs which makes it necessary to understand in which category does a particular item falls. Another complexity that has confused a lot of business owners is the mandatory registration in certain cases, of companies whose aggregate turnover is well below the threshold limit. In order to understand the compliance requirements and remove all confusion, it is imperative that professional agencies are hired who will provide the requisite guidance.
3. Useful In Professional Tax Management
It is essential for an enterprise to invest in efficient systems and practices in order to be productive and taxation is one of the most vital aspects in this regard. Involving experts in matters related to GST compliance and payment will be useful in overall tax management of the company as professionals will help in devising a plan for all the necessary procedures and also a functional strategy which will assist in saving money while paying taxes. The tax planning has to be in complete synchronization with other activities of the company so that all the business goals are achieved in the shortest possible time.
4. Beneficial For The Future
The structure of the new tax regime is still evolving with the government incorporating changes after assessing the impact of the system. The GST Council, the constitutional body responsible for making recommendations related to every aspect of the tax, regularly takes note of developments and problems in order to make relevant changes. For instance, some time ago the council moved LPG for domestic consumption from 18% slab to 5%. Similar changes are made for compliance and payment regulations also and having professionals looking after GST requirements of a company will be beneficial for the future also as they will make the necessary adjustments in the organization quickly.
5. Helpful In Business Planning
GST has become an integral part of the corporate environment of the country and every enterprise has to make adjustments due to the impact of the tax. Having professional assistance for managing the tax requirements will inevitably be helpful in the overall planning of the business as well. The blueprint for growth is incomplete without a comprehensive strategy for managing taxes and once a professional agency is taking care of major taxation requirements, an efficient plan can be formulated with the relevant inputs provided by them.
The complex and evolving nature of the tax makes it compulsory for commercial organization to engage professional agencies like GST consulting services in India who can provide valuable and helpful advice on all aspects of the tax.