How GST affects the CAs and tax officers?
The implementation of the Goods and Services Tax (GST) in India has significantly impacted the roles, responsibilities, and opportunities for Chartered Accountants (CAs) and tax officers. Here are some key ways in which GST has affected them:
Increased Demand for Services
GST has expanded the role of CA professionals by increasing the demand for services such as GST registration, filing, compliance, audits, and tax advisory. CAs are now at the forefront of helping businesses navigate complex GST regulations, ensuring compliance, and optimizing tax liabilities4.
New Areas of Specialization and Opportunities
The introduction of GST has created new avenues for consultancy, advisory services, and tax planning. CAs who master GST are better positioned to provide valuable services to their clients, which has opened up new opportunities for career advancement. The merging of central and state-level taxes has also made it necessary for businesses to have only one consultant for GST, rather than separate consultants for excise and VAT34.
Changes in Work Scenario
Under GST, the work process has become more streamlined and efficient. Previously, under the VAT system, a lot of work was done manually, resulting in significant time waste. GST has shifted most of the work to an online platform, making it easier and saving time. Additionally, the uniform return format across the nation has expanded the working area for CAs, allowing them to operate beyond state boundaries1.
Professional Fees
The implementation of GST has led to a significant increase in professional fees for CAs. The monthly filing procedures under GST, as opposed to the previous quarterly filings, have increased the workload for CAs, resulting in higher fees. The fee structure for CAs has risen substantially, from around INR 2000 to INR 5000 per client to approximately INR 25,000 per client1.
Compliance and Filing
GST has introduced stringent compliance requirements, including the mandatory filing of Form GSTR-1 before Form GSTR-3B, and the need to reconcile credits with Form GSTR-2B. CAs must ensure that their clients comply with these requirements to avoid penalties and prosecution for fraudulent input tax credits (ITC)2.
Input Tax Credits (ITC)
CAs need to manage ITC effectively, as the credit pool is state-specific and cannot be used to offset output tax liabilities in another state. They must also ensure that credits are availed only if they reconcile with Form GSTR-2B to avoid any discrepancies and potential penalties2.
Continuous Updates and Training
GST laws and regulations are frequently updated, making it essential for CAs to stay well-informed to provide valuable services to their clients. This continuous need for updates and training has become a critical aspect of their professional development4.
In summary, GST has transformed the role of CAs by increasing their workload, expanding their service offerings, and requiring them to stay updated with frequent changes in GST laws and regulations. This has created both opportunities and challenges for CAs and tax officers in ensuring compliance and optimizing tax liabilities for their clients.