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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning

Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative

This chapter covers four CGST Act themes: the compliance rating score (Section 149), the duty to pass on tax cuts and input tax credit benefit through lower prices (Section 171), GST practitioners (Section 48) and who can appear as an authorised representative (Section 116). Learn each rule, its conditions, and apply it to the facts given.

What this chapter covers

This chapter groups four provisions that deal with how a registered person is monitored, how price benefits must reach buyers, and who may act on the taxpayer's behalf. They are short sections, but each has precise conditions that case questions test.

Compliance rating (Section 149) lets the Government assign a score to a registered person based on compliance record. Anti-profiteering (Section 171) requires that a rate cut or the benefit of input tax credit be passed on to the recipient by a commensurate price reduction. GST practitioners (Section 48) and the authorised representative (Section 116) deal with who can file returns or appear in proceedings for a taxpayer.

The chapter links to the rest of the paper. Returns and input tax credit give you the base for anti-profiteering. Appeals, advance ruling and notice service (Sections 98, 101C and 169) are the proceedings where an authorised representative appears. Treat this chapter as the place where procedure meets people.

GST is the larger part of this elective, and the paper is written and case-based, so you must state the provision, apply it to the facts and conclude. This chapter is compact and rule-driven, which makes it a good place to score full marks: the conditions are listed in the Act, and a precise answer beats a long one. As a CS, you also act as an authorised representative, so this is your own professional territory.

Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative: topics in the order to study them

  1. 1GST Compliance Rating (Section 149)It is the shortest section, so you build confidence and learn the vocabulary of score, parameters and public domain first.
  2. 2Anti-Profiteering Measure (Section 171)This is the core rule of the chapter; you need it before studying who enforces it.
  3. 3Anti-Profiteering Authority and EnforcementOnce you know the duty, learn who examines it, the penalty and the time to avoid it.
  4. 4GST PractitionersYou move to the people side, starting with what a practitioner can do and who remains responsible.
  5. 5Authorised Representative (Section 116)It is the longest list of conditions, and it builds on the practitioner as one category of representative.

How to prepare Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative

The sections are short, so your aim is exact wording of conditions and the ability to apply them to a fact pattern.

  1. Read each section from the Act once, slowly, and underline words like 'may', 'shall' and 'commensurate'.
  2. Make a one-page note for Section 171: duty, Authority, penalty of ten per cent of the profiteered amount, the thirty-day deposit exception, and the meaning of 'profiteered'.
  3. Make a list for Section 116: the five categories of authorised representative, the one-year bar for a retired officer, and the disqualifications in sub-section (3).
  4. Note the link between Section 48 and Section 116: a practitioner may file returns, but responsibility for correctness stays with the registered person.
  5. Write two or three case answers in the format provision, facts, conclusion, for example whether a seller who got a rate cut must cut the price.
  6. Revise by closing the book and writing the list of conditions from memory, then check against the Act.

Common mistakes in Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative

  • Saying the compliance rating is compulsory and fixed for every taxpayer.

    Fix: Use the Act's words: the score 'may' be assigned and 'may' be updated, on prescribed parameters.

  • Writing that profiteering means any price increase.

    Fix: Define it as the amount from not passing on the rate cut or input tax credit benefit by a commensurate price reduction.

  • Stating the penalty without the exception.

    Fix: Add that no penalty applies if the profiteered amount is deposited within thirty days of the order.

  • Thinking the GST practitioner takes over legal liability for the return.

    Fix: Quote Section 48(3): responsibility for correctness remains with the registered person.

  • Listing authorised representatives incompletely or forgetting the conditions.

    Fix: Remember each category with its condition: certificate of practice, not debarred, and the one-year bar for retired officers.

  • Ignoring the disqualifications in Section 116(3).

    Fix: Learn the four disqualified groups: dismissed or removed from Government service, convicted, found guilty of misconduct, and adjudged insolvent, with the period of disqualification for each.

Last-day revision: Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative

  • Section 149: the Government may assign a compliance rating score to a registered person based on compliance record.
  • The score may be determined on prescribed parameters and updated at periodic intervals.
  • The score is intimated to the registered person and placed in the public domain as prescribed.
  • Section 171(1): a rate cut or the benefit of input tax credit must be passed on by a commensurate reduction in prices.
  • The Central Government, on the Council's recommendation, may constitute or empower an Authority to examine this.
  • Penalty for profiteering is ten per cent of the profiteered amount.
  • No penalty if the profiteered amount is deposited within thirty days of the Authority's order.
  • For Section 171, 'Authority' includes the Appellate Tribunal.
  • Section 48(3): responsibility for correctness of returns filed by a practitioner stays with the registered person.
  • Section 116: representation is by a relative or regular employee, an advocate, a CA, CMA or CS with a certificate of practice, a qualifying retired officer, or a GST practitioner.
  • A retired officer cannot appear for one year from retirement or resignation.
  • A person who is required to appear personally for examination on oath or affirmation cannot send a representative.

Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative practice questions

Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative: frequently asked questions

What is the GST compliance rating?

It is a score the Government may assign to a registered person based on their record of compliance with the CGST Act. It is determined on prescribed parameters, updated periodically, and placed in the public domain as prescribed.

What happens if a business does not pass on the benefit of a GST rate cut?

It may be examined by the Authority under Section 171 and held to have profiteered. A penalty of ten per cent of the profiteered amount applies, unless the amount is deposited within thirty days of the order.

Can a company secretary appear before GST authorities?

Yes. Under Section 116, a company secretary who holds a certificate of practice and has not been debarred from practice can be an authorised representative.

Is the registered person still responsible if a GST practitioner files the return?

Yes. Under Section 48(3), responsibility for the correctness of particulars in returns or other details filed by the practitioner continues to rest with the registered person.