Guide to CA Certificates in GST - Amazon Web Services

1 Guide to CA Certificates in GST. The Institute of Chartered Accountants of India (Set up by an Act of Parliament). New Delhi The Institute of Chartered Accountants of India All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior permission, in writing, from the publisher. DISCLAIMER: The views expressed in this book are of the author(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the author(s). The information contained in this book has been drawn from various sources. While every effort has been made to keep the information in this book error free, the Institute or any officer of the same does not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this book.

2 Edition : February, 2020. Committee/Department : GST & Indirect Taxes Committee E-mail : Website : ; Price : ` 150/- ISBN : Published by : The Publication Department on behalf of the Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi - 110 002. Foreword GST, a paradigm shift from origin based tax to destination based tax, has been introduced in India with one of the objectives to provide an uninterrupted and seamless flow of input tax credit, and a mechanism to avoid cascading of taxes. Thus, to ensure this smooth flow of credit and also authencity of credit claimed by the tax payers, in some cases they are required to make declarations in Form GST ITC-01, Form GST ITC-02 etc. Government has given the responsibility of certifying aforesaid declarations to Chartered Accountants, which I am sure will be taken care by our members with utmost care and dedication.

3 In order to facilitate members and other stakeholders in understanding the requisite contents of Certificates , supporting documents so as to assiduously discharge duties and responsibilities casted on them, GST & Indirect Taxes Committee of ICAI has come out with this Guide to GST Certificates . In the Guide , an attempt has been made to cover each and every area in GST Law requiring furnishing of CA Certificate. Further, check points have been included for each Certificate which may be referred by the members before certifying the credential provided by the tax payers. I request my professional colleagues to equip themselves and exercise due care while certifying the credentials. I appreciate the efforts put in by CA. Sushil Kumar Goyal, Chairman;. CA. Rajendra Kumar P, Vice-Chairman, GST & Indirect Taxes Committee and other members of the Committee for undertaking this tedious task and coming out with this comprehensive Guide .

4 I wish the readers a fruitful and knowledge enriching experience. Date: CA. Prafulla P. Chhajed Place: New Delhi President, ICAI. Preface Smooth GST implementation is an epitome for economic growth in India. This calls for in- depth understanding and comprehension of GST law both theoretically and practically. One of the practical aspects of considerable importance to our fraternity is the requirement of Chartered Accountant Certificate under various provisions in GST law like availability of ITC in certain special circumstances, refund claim exceeding Rs. 2 crore, disbursal of budgetary support under GST regime to the units located in States of J&K, Uttarakhand, Himachal Pradesh and North East etc. Considering the above facts, the GST & Indirect Taxes Committee has come up with this publication titled Guide to CA Certificates in GST which contains various Certificates required under GST regime to be issued by Chartered Accountants along with corresponding check list.

5 Format of Certificates are purely recommendatory in nature, to facilitate members and stakeholders to discharge their duties and responsibilities proficiently. The Certificates discussed have not only given illustrative guidance but also explicitly state the responsibility cast on Management and Practitioner in terms of the provisions requiring such Certificates . Although an attempt has been made in this Guide to cover all the areas under GST requiring certification from Chartered Accountant, in case any certificate not covered, then members are requested to apply their mind judiciously, keeping in view the intent behind the law, principles and policies. We thank CA. Prafulla Chhajed, President and CA. Atul Kumar Gupta, Vice-President, ICAI for providing support for this initiative. We are happy to acknowledge the support of CA. S. Venkatramani, CA. A. Jatin Christopher, CA. Raaja Jindal, CA. Ashu Dalmia, CA Yash Daddha, CA.

6 Venu Gopal Gella, CA Kapil Vaish, CA Rohini Aggarwal, CA Naresh Seth and others members of the GST & Indirect Taxes Committee and also the members of Auditing &. Assurance Standards Board for reviewing all the Certificates . I also appreciate the dedicated efforts of the entire Secretariat of GST & Indirect Taxes Committee. Readers are welcome to provide suggestions for the improvement of this Guide at CA. Rajendra Kumar P CA. Sushil Kumar Goyal Vice- Chairman Chairman GST & Indirect Taxes Committee GST & Indirect Taxes Committee Place: Delhi Date: Table of Contents Ch. No. Subject Page No. I. Certificate under Section 18(1)(a) of the CGST Act 1 5. II. Certificate under Section 18(1)(b) of the CGST Act 6 10. III. Certificate under Section 18(1)(c) of the CGST Act 11 16. IV. Certificate under Section 18(1)(d) of the CGST Act 17 22. V. Certificate under Section 18(3) of the CGST Act 23 26. VI. Certificate under Section 54 of the CGST Act 27 30.

7 VII. Certificate under Section 29(5) of the CGST Act 31 36. VIII. Certificate under Section 18(4) of the CGST Act- Composite Tax Payer 37 42. IX. Certificate under Section 18(4) of the CGST Act-Taxable supplies by registered person become wholly exempt 43 48. X. Certificate under Notification dated 5-10-2017- Eligible unit has not received any inputs from another business premises 49-53. XI. Certificate under Notification dated 5-10-2017- Eligible unit received any inputs from another business premises 54-57. Chapter I. Certificate under Section 18(1)(a) of the CGST Act Independent Practitioner's Certificate under the State Goods and Services Tax Act, 2017. (in short SGST Act ) and the Central Goods and Services Tax Act, 2017 (in short CGST Act ) in terms of Section 18(1)(a) of the said Acts and Rule 40(1)(d) of the rules issued under such Acts Appropriate Addressee Name and Address of the Applicant 1.

8 This Certificate is issued in accordance with the terms of our agreement dated . 2. M/s. _____ (hereinafter referred to as the Applicant') is a registered person vide GSTIN and is having its principal place of business at _____ in the State of _____. The Applicant has the following additional places of business in the State/s of _____. (a) _____. (b) _____. The Registration of the principal place of business and the other places of business in the State of _____ is applied on _____ within the stipulated time of 30 days from the date of becoming liable to obtain registration. 3. In terms of Section 18(1) (a) of the CGST and SGST Acts, a person who has applied for registration under this Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take Input Tax Credit in respect of inputs held in stock and inputs contained in semi- finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the SGST / CGST Act, 2017 by declaring the same, electronically, on the common portal in Form GST ITC-01.

9 (Hereinafter referred to as the Statement) The details furnished in the above statement shall be duly certified by a practicing chartered accountant or a cost accountant where the aggregate claim exceeds Rs. 2 Lakhs. Management's responsibility for the Statement: 4. The preparation of the statement and declarations in relation to the stock required in terms of the CGST and SGST Acts and Rules issued under the said Acts, is the responsibility of the Management [Name of the Applicant]. including the preparation and maintenance of all accounting and other relevant Guide to CA Certificates in GST. supporting records and documents. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the statements and declaration (including physical verification of stock). and applying an appropriate basis of preparation; and making estimates that are reasonable in the circumstances.

10 Management is also responsible for ensuring that the Applicant complies with the requirements of CGST / SGST Act and CGST /SGST Rules. Practitioner's responsibility: 5. Pursuant to the requirements of Section 18(1)(a) of the SGST / CGST Act read with Rule 40(1)(d) of the CGST / SGST Rules, 2017,it is our responsibility to examine the books of accounts and other relevant documents / records of the Applicant and to provide a reasonable assurance that the amounts declared in Form GST ITC-01 have been accurately drawn from the books of accounts and other relevant documents /. records of the Applicant and is claimed as input tax credit;. We conducted our examination of the Statement in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by the Institute of Chartered Accountants of India. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India.