The appropriate professional will be identified based on the nature of your GST problem.
For routine GST compliance, return filing, reconciliations, registrations, bookkeeping support, or even some refund-related documentation, a GST consultant can be really helpful. A GST lawyer might be needed, if the issue includes a GST notice, show- cause notice, a disputed tax demand, an Input Tax Credit (ITC) dispute, a matter under adjudication, appeal, litigation, or it is a question of law interpretation that is really complex.
For illustration:
- Normal GST return or reconciliation: Possibly GST consultant/CAt.
- GST show-cause notice regarding refund and ITC disputed tax: GST lawyer or an experienced tax professional in litigation areas.
GST Lawyer vs. GST Consultant FAQs in Delhi
1. What sets a GST law firm practitioner apart from a GST tax advisor?
A GST consultant generally provides services related to the GST compliance, accounts coordination, returns filing & reconciliation, registrations, and other tax functions on a regular basis.
On the other hand, a GST lawyer will be better suited to deal with the matters involving the issuance of notices (e.g. a GST notice), the dispute of tax, the dispute over refund, the issue of fraudulent claims, or the matter of law interpretation that requires legal representation as well as adjudication, appeal and litigation. A lawyer will also be useful in giving an opinion where a complex aspect of the GST law is to be interpreted or dealt with.
2. Who shall respond to a GST notice?
It depends on type of notice. A standard compliance-related concern can be addressed/clarified with the assistance of a GST consultant or a CA.
Meanwhile, notices that contain disputing the tax, disputing the refund, ITC/claim dispute, raising claims, penalties, etc, or involve complicated legal questions probably need a GST lawyer!
3. Who can manage a GST appeal?
Appeal can be managed only by persons well versed in the process of GST appellate proceedings. The procedure under the GST law for making an appeal includes fixed format, deadline, and submission of documents and hence, these must be dealt with great seriousness.
4. Can a GST consultant be able to prepare a GST refund claim?
Both GST consultants and CA can prepare routine GST refund claim with all the necessary supporting documents and files. However, a GST lawyer will be very helpful where the GST refund is disputed, rejected, or withheld by the officer or involves complicated legal issue.
| GST Issue | GST Consultant | GST Lawyer |
|---|
| GST registration | Usually suitable | May assist where legal complications exist |
| GSTR-1/GSTR-3B compliance | Usually suitable | Usually unnecessary for routine work |
| GST reconciliation | Suitable | Can review where dispute exists |
| Routine refund filing | Suitable | May assist if legally complex |
| GST notice | Depends on complexity | Useful for disputed/legal matters |
| ITC dispute | Can assist with reconciliation | Useful for legal defence |
| Show-cause notice | May assist with records | Particularly relevant for legal response |
| GST appeal | May assist with technical data | Relevant for legal grounds and representation |
| Complex litigation | Limited role | Appropriate specialist |
| Fraud/suppression allegation | Requires specialist review | Legal representation may be important |
When a GST Consultant May Be Enough
It is not necessary to look for litigation-oriented legal assistance regarding all the GST issues.
A GST consultant, for instance, should be good enough to take care of some of the regular activities such as:
1. GST Registration
A new Delhi company will be happy to work with a consultant when the requirement is to get a GST certificate and learn about the basic compliances to fulfill.
2. GST Return Filing
Business organizations can hire specialists to handle the drafting work, file the GST returns on a regular basis besides comparing the outward and inward supplies.
3. ITCS Reconciliation
A professional will help you verify input VAT against GST return details and spot the mismatch issues.
4. Routine Refund Preparation
GST refund applications must comply with certain norms and requirements. A good example of this is that refund applications are normally done online in the prescribed tax refund forms GST RFD-01 through the GST website as per rules.
When You Might Benefit from the Services of a GST Lawyer
If you are stuck beyond the basic tax compliance, a good lawyer will make a huge difference.
1. The issue is regarding your GST Show-Cause Notice
A show-cause notice is issued by the tax department and the main reason behind the issuance is that the taxpayer’s conduct is under a cloud. The taxpayer is given certain reasons and the show-cause notice may contain the following items:
Items such as tax owed, interest, and penalty may be raised under a show-cause notice as well as your ITC may be reversed.
2. You Have an Input Tax Credit That Is Under Challenge
It is a fact that ITC disputes are not always just about ITC reversal but also about issues that affect eligibility of ITC or the taxpayer being challenged over the correctness of documentation supporting ITC.
In fact, a dispute over input taxcredit can throw up issues such as:
- Qualification
- Documentation
- Suppliers’ reporting
- Invoice discrepancies
- Goods or services receipt
3. You Have Received a Substantial GST Demand
Befittingly a hefty demand needs a thorough checking of the entire matter before opting for any of the payment/appel decisions.
A GST professional can analyze the following for instance:
- The notice that is the starting point of the demand
- How the tax department made their calculation
- Taxpayer’s books and records that were examined by the department
- Which legislation(s) did the department rely on to raise the demand
- Interest charges calculation
4. You Need to Make a Tax Appeal on GST
The submission of an appeal in general does not belong to the sphere of ordinary taxpayer compliance.
Normally the filing of an appeal involves the preparation of
- Reasons for appealing
- Facts of the case
- Notice that has already caused the issue
- Supportive documents
- Legal contentions
- Papers that are to be filed
How a GST Lawyer Handles a Notice
It is very likely a GST lawyer will follow the process outlined below:
Step 1: Understanding the Notice
He or she would first make a note of the tax period, amount involved, allegations made, statutory provisions, and the date before which one is expected to respond.
Step 2: Checking the Documents
Making sure one has all the tax returns and documents including GST invoices, other invoices, ledgers, bank statements and related business papers for review.
Step 3: Cross Verifying Figures
The department’s calculation is matched against the books of accounts & GST records of the concerned taxpayer.
Step 4: Pinpointing Legal Issues
It must also be checked whether the department’s reasoning is legal & aligned to the facts if it’s not the matter has to be challenged.
Step 5: Writing of the Respond Letter
Picking up each point one-by-one and providing reasons for it on the basis of relevant documents and also stating the legal argument for the rejection.
Step 6: Attending Personal Hearing
Where the department demands that the case be discussed before a hearing panel, lawyer acts as a representative of the taxpayer and answers questions from the department representatives.
Step 7: Evaluating the Result of the Case
After getting an adverse order, decide whether a review petition, appeal, or any other remedy has to be used according to law.
How a GST Consultant Is of Help to a Lawyer
A simple lawyer vs consultant scenario is not always what’s best to go with the problem at hand. They may also complement each other in the cases of complex GST problems.
E.g.:
GST Consultant / Taxation Professional:
- Taking up the issue of mismatch with GST information from the books of accounts
- Doing a review of the books of account
- Developing financial schedules
GST Lawyer / Legl Advisor:
- Investigating the legal aspect of tax regulations
- Raising the legal argument in reply of department’s notice
How to hire a good GST lawyer in Delhi/India?
Before getting into a deal with the professional, one may put these queries to him/her:
- Have you been into the type GST notice which I have?
- Are you familiar with cases on ITC issues?
- Would you handle GST appeals on behalf of the taxpayer?
- Can you represent the taxpayer in person hearing?
- Will you go through all the underlying documents?
Taking Decision Between GST Lawyer & Consultant: Some Points to Consider
Situation Where a Consultant/CA Must be the Professional:
- Monthly return filing
- GST registration
- Regular reconciliation
If it is a matter of dispute with department then a lawyer might be the right person:
- Responding to a GST show-cause notice
- Contesting the ITC claim
- Dispute over the imposition of the tax for a huge amount
- Complaining against the amount of penalty imposed
Both Should Be a Good Team When Deal With:
- GST related corporate cases of major size
- A major ITC reconciliation
- Sale transactions across the boundaries of states