Role of CMAs in GST, Role of Cost Management Accountant in GST. Check What is the Role of CMA in GST in India. Role of CMA in Goods and Service Tax India. The introduction of Goods and Services Tax (GST) would be a very significant step in the Indian arena of indirect tax reforms. By integrating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation effect in a major way and pave the way for a common national market. CMA with his academic knowledge and professional expertise can play a crucial role as a consultant and a catalyst for due compliances of law relating to goods and services tax to the general business community and spread tax-literacy and GST awareness. now check more details about ”
Central Government appreciated the role of Cost Accountant in the era of Economic reform to GST. In accordance with GST Act, role of cost accountant has been given in various Sections of rules:
Role of CMAs in GST (Goods and Services Tax) in India
Role Of Cost Accountant:
GST has been touted as the ‘single most important tax reform after 1947’by the Hon’ble Finance Minister, Mr. Arun Jaitley. The entire framework of indirect taxation will change ranging from the nature of levy, rate of taxes and administration of the taxes. Introduction of GST should rationalize the tax content in product price, enhance the ability of business entities to compete globally, and possibly trickle down to benefit the ultimate consumer. GST will have a crippling effect on the prices of all the goods and services in India. Amid this huge impact, lies an enormous opportunity for the Cost accountant. Here’s an opportunity for the tax professionals to foresee an opportunity, get acclimatized and be well equipped at the right time.
The role of a cost accounting post GST has been underlined by various provisions made in CGST/ SGST law as well as various rules. Summary of such provisions has been reproduced below.
Business Advisory services:
Managing a business in today’s world is very complex and presents many confrontations to the corporate houses. CMAs are qualified, proficient and knowledgeable professionals, who can interpret the proposed GST law and may provide required guidance and advisory services to eradicate bottlenecks in finance, production, taxation, administration, supply chain management, etc.GST would require proper record keeping and accounting. Systematic records of credit of input/output service and its proper utilization is necessary for the success of GST. CMAs are well equipped to perform such tasks too.
Assessing impact on business with the introduction of GST, crafting business plans in the changed environment, Contract review for Cost Reduction /Price Revisions, transaction Structuring by mapping existing business model. Providing Opinion and other advisory services w.r.t. application of various provisions of law like Input tax Credit, Valuation, assessment of taxability, determining place of supply, maintenance of records, consultancy w.r.t. inter-state supply etc. With a new law, comes a new set of tax / procedural issues and hence the professionals also need to evolve and devise new tax planning strategies. As an advisory carve out strategies to avoid the bottlenecks. Any planning which mitigates tax cost would be most appreciated by clients.
GST – Procedural Compliances:
Offering help in acquiring enrollment, making change in enlistment, offering help in upkeep of records and records, aiding installment of duty, offering help in documenting of profits. The compelling administration of roundabout duties is essential in the present worldwide commercial center. Aberrant charges must be effectively overseen all through the business on the off chance that they are to work with the surrounded vital motivation. Like present expense law, citizen would be required to do GST Registration, Return Filing, Tax Payment, Tax Assessment, and so on under the proposed GST law. A CMA is very much prepared to help the business substances in giving help towards GST Registration, Claiming charge credits, guaranteeing all the essential lawful compliances, procedural customs and other authoritative subsequent meet-ups.
There would be various transitional issues going into the new law, for example, treatment of existing stock and credit issues. Administrations will likewise be required in getting ready Standard Operating Process (‘SOP’) for organizations under the new administration. Survey of existing cenvat credit and set – off parities to be conveyed forward, investigation of stock lying at various areas on the usage day, Cenvat Refund/VAT Refund/Rebates/Drawbacks as of now recorded or to be documented, extends close by/WIP – ordinary plan of action and works contract display, review under Old Regime and New Regime, de – enrollment, enlistment and Compliances under existing Laws, Pending mediations &litigations.
Representations under Dispute resolution post GST:
In GST administration, there could be different differences between the Center and the States by virtue of different issues with reference to cross-fringe exchanges, issues emerge in regard of demand and directing of Destination State’s offer of income, managing between state development of products and enterprises. Thus, for the determination of the different issues in GST administration, there is a need debate settlement system with a specific end goal to have smooth stream of structure. CMAs are perceived to make portrayals before the Appellate Tribunals under the Indirect Taxation statutes in India. They would keep on representing even in post-execution of GST for Dispute Resolution.
Audit and Assurance
Different review capacities can be embraced post GST like survey of record and procedural viewpoints, proposing changes in enrollments, check of profits, compromise between entries to different experts, examination of advantages and motivators, statutory compliances and review, Internal Audit and System change.
Systems Audit and systems development to be GST compliant:
A frameworks review includes a point by point investigation and assessment of an entire framework, frequently the records payable or records receivable framework. There would be an ocean change required in the ERP or Accounting frameworks built up. Those frameworks are to be made GST-consistent. CMAs would be the facilitator to direct the frameworks review thoroughly and control in frameworks advancement.
Bookkeeping and IT framework
The present organizations include uncontrolled utilization of programming (ERP, SAP, Tally) both by the business and administration giving assessment experts. With the appearance of GST, uncommon redoing of existing IT framework would be required. Further, the whole current bookkeeping codes/treatment may experience a change under the new enactment. With the information of GST, cost bookkeeper would be most appropriate to help experts in planning the product modules.
Acquaintance of GST will lead with ascend in preparing requirements– (a) for the business (b) for impose experts. A three-overlap preparing structure can be embraced i.e. preparing to (1) top administration of firms/entrepreneurs, (2) process proprietors and (3) tax assessment/bookkeeping group. Preparing would be required in first teaching the entrepreneurs and higher administration on the probable effect of GST on their business and from that point refreshing the organization staff with subtleties of GST alongside normal refresh sessions.
The new law-new GST time opens various chances to cost bookkeeper in the field of aberrant tax assessment. To grab the open door, one should be very much arranged and prepared.