The Institute of Chartered Accountants in India (ICAI) issued a set of Frequently Asked questions (FAQs) wherein the ethical issues relating to the newly implemented Goods and Services Tax (GST) were discussed.
The latest announcement clarifies that the Chartered Accountants can practice can engage as GST practitioner , under the CGST Act, 2017 read with CGST Rules, 2017 and there is no ethical problems in this since the practice is within the purview of Chartered Accountants Act and Regulations.
It further clarified that a CA who is enrolled as a GST practitioner can inter alia undertake the assignment of filing returns under the CGST Act, 2017.
Also, a member holding CoP, who is an employee in a CA Firm, can be enrolled as GST practitioner subject to contractual obligation with the employer. This is also applicable to member holding CoP on part time basis and working as an employee in an entity other than a CA Firm.
It was clarified that “a member/Firm can conduct training through seminars etc. on GST. However, the member /Firm may only invite its existing clients to such training programmes. Inviting individuals or entities other than existing clients may amount to solicitation , which is prohibited under Clause (6) of Part-I of First Schedule to The Chartered Accountants Act, 1949.”
Further, he can send presentation on GST /write-up on GST only to existing clients, and to a proposed client if an enquiry was received from the proposed client with regard to the same.
Regarding a question “Whether it is permissible for a member to mention himself as “GST Consultant”?”, the apex body answered in negative and said that it is not permissible in terms of provisions of Clause (7) of Part-I of First Schedule to The Chartered Accountants Act, 1949.
Restricting CAs active role in social networking sites, it was said that “A member can share GST updates, mentioning himself as “CA” with individual name, provided the communication is limited to providing updates. Mention of Firm name is not allowed.”
The FAQ further stated that GST services are part of professional services provided by a chartered accountant, and accordingly, its advertisement has to be in terms with the ICAI Advertisement Guidelines, 2008 only. ‘He cannot mention the fees/charges, as it is not allowed in the Advertisement Guidelines,” it said.
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