A primary signatory is a person who is authorized by a business to perform all necessary functions on the GST portal. He/she is the primary point of contact between the entity and the tax authorities and effectively discharges all the legal and regulatory functions necessary for a business. The entity shall appoint a Primary Authorised Signatory who shall have the legal authority and responsibility to legally represent the business entity in all matters related to GST and Indirect tax matters.
Importance of Primary Authorised Signatory in GST Portal
A primary authorized signatory is not just a symbolic representative of a business but the custodian of several crucial functions for a company. The business entity can issue a power of attorney in favour of the primary signatory to file returns, send replies to notices and official communications, assisting and verify compliance and audits.
GST Registration Process
The primary authorized signatory is responsible for the end-to-end registration and process of the entity. The process involves filling out requisite forms, making submissions, and providing documents to the regulatory authority through the GST Portal.
Filing of GST Returns
The primary signatory is responsible for filing GST Returns on behalf of the company. It should ensure that the returns are filed in a timely and accurate manner. The monthly, quarterly, and annual returns shall be properly prepared, recording all the financial transactions in the returns.
Coordination with GST Authorities
The primary authorized signatory is the official representative of the company and serves as the channel of contact between the CBIC, tax authorities, and the business. The primary signatory shall effectively respond to all notices, queries, clarifications, and assessments by the tax authorities, notices, and communications with GST Authorities.
Assistance in Audit and Assessment
The primary authorized signatory is responsible for assisting the business entity in periodic GST audits and assessments. Since they are legally authorized representatives of the business, they provide all the necessary documents, records, files, and clarifications to the authorities on behalf of the business.
Control and Access to Records
Since the primary authorized signatory is the legal representative of a business entity and is responsible for coordination with the tax and regulatory authorities, it is imperative that the primary statutory authority shall have access to all crucial records, details, and accounts of the business.
Legal Dispute Resolution
The Authorized representative is also responsible for representing any disputes or litigation related to disputes related to GST or Indirect Tax. The key responsibilities and powers include replying to notices, filing affidavits, rejoinders, and replies, and presenting evidences and files before the Tax Authorities and appellate authorities in the interest of the business entity.
Challenges Addressed by a Primary Authorised Signatory
The various challenges addressed by a primary authorised signatory are:
Coordination with GST Authorities
The primary authorised signatory acts as an effective communication and coordination link with the CBIC and other GST authorities. They produce necessary documents, records, and submissions on the GST Portal at the time of GST registration. The primary authorised signatory is also responsible and crucial in discharging various compliance functions such as filing of returns and records, audits, assessments, replying to notices, communications, and other GST-related responsibilities.
Effective Control and record-keeping
Primary authorised signatory in GST helps maintain effective control and management of the GST-related functions and responsibilities of the company. They have access and control to all the essential and compliance-related documents, records, and transactions that are integral and necessary for ensuring compliance with laws.
Avoidance of Penalty
As per the GST Act, 2017 is a person is an entity that does not register and obtain a GSTIN number, files periodic returns and records, or provides evidence, replies, documents, or proofs when required by the authorities, or indulges in any fraud or non-compliance activity is liable for several penal implications, as well as imprisonment for directors or key management personnel of the company. Primary authorised signatory helps avoid mistakes or mis-compliances that might result in heavy penalties for the company.
Conclusion
A primary authorised signatory in GST Registration is a nodal entity that helps a business facilitate compliance and communication with GST Authorities. The role of the primary authorised signatory in GST Registration is complex and essential for a company’s journey in legal and tax compliance. The Primary Signatory is a person or entity who is well-versed with GST and audit-related compliances, managing everything from daily filing operations to standing in for the business in intricate audits. Having a capable and knowledgeable Primary Authorised Signatory in GST Registration is essential for assuring smooth sailing through the complex waters of laws as businesses continue to navigate the business tax landscape of India.
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Frequently Asked Questions (FAQs)
What is a Primary Authorised Signatory?
A primary authorized signatory in GST Registration is a person who is authorized by a business to perform all necessary functions on the GST portal, such as GST Registration, periodic and annual filing, replying to communications and notices on behalf of the business entity as well as dispute resolution related to GST.
Why does the Primary Authorised Signatory have control and access to company records?
The primary authorized signatory in GST for a business has access and control to all the essential and compliance-related documents, records, and transactions that are integral and necessary for ensuring compliance with laws since they are required to deal with regulatory bodies and compliances effectively.
How a primary does an authorized signatory in GST aid in legal dispute resolution?
The authorized representative is also responsible for representing any disputes or litigation by replying to notices, filing affidavits, rejoinders, and replies, and presenting evidence and documents before the tax authorities and appellate authorities in the interest of the business entity.
How does the primary authorized signatory provide Assistance in Audit and GST Assessment?
The Primary Authorized is responsible for assisting the business entity in periodic GST audits and assessments. Since they are legally authorized representatives of the business, they provide all the necessary documents, records, files, and clarifications to the authorities on behalf of the entity.
What is the penalty for contravention of GST Regulation?
As per section 122 of the CGST Act, 2017section 122, contravention of the act, such as failure to obtain GST registration, fraudulently obtaining a refund of taxes, issuing false or incorrect invoices, committing or assisting in the commission of fraud, non-filing of GST Returns etc. they shall be liable for a fine of up to Rs. 10,000/- or the amount of tax evaded.
What challenges does a primary authorized signatory help businesses effectively address?
Primary authorized signatory helps businesses in addressing numerous operational challenges, such as coordination with GST Authorities, effective control and record-keeping of the accounts and transactions, integration with AI and technology, and risk management to avoid penalties and fines.
How does Corpbiz help my business find and appoint the right Primary Signatory in the GST Portal?
Corpbiz is a leading tax and audit services provider to corporations and businesses. Our team of tax experts and chartered accountants would help you seamlessly navigate GST compliance issues by providing seasoned professional services. To know more about our price bands, visit our website today!
What is the full form of GST?
The GST is the goods and service tax in India.
Does a primary signatory help in compliance with GST?
Yes, a primary signatory helps in GST compliance.
Is a primary signatory legally recognized?
Yes, a primary signatory is a legally recognized entity.
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