Section 116 of CGST Act, 2017 : Section 116: Appearance By Authorised Representative

Explanation using Example

Imagine a small business owner, Mr. Sharma, who is undergoing a GST audit for his electronics shop. During the audit, the GST officer requires Mr. Sharma to appear before him to explain some discrepancies in his tax filings. Mr. Sharma is not well-versed in tax laws and is nervous about facing the officer alone. He decides to seek professional assistance.

Under Section 116 of The Central Goods and Services Tax Act, 2017, Mr. Sharma is allowed to appoint an authorised representative to appear on his behalf. He chooses to engage Ms. Gupta, a chartered accountant with a valid certificate of practice, to represent him during the GST proceedings. Ms. Gupta is well-qualified and has not been debarred from practice, making her an eligible authorised representative as per the Act.

Ms. Gupta prepares all the necessary documentation and accompanies Mr. Sharma to the audit. She effectively communicates with the GST officer, clarifying the issues and providing the required explanations. Thanks to her expertise, Mr. Sharma's audit is completed smoothly, and he avoids any potential penalties that could have arisen from miscommunication or misunderstanding of the tax laws.