The Introduction of GST has reduced the compliance burden of the assessees who had registered with Excise/VAT/Service tax and the record maintenance requirement for these statutes were different. After introduction of GST, the requirement of maintenance of Accounts and records have been notified by the Act making it simpler for the tax payers to comply with the same. In this article we have tried to summarise the various requirements under GST with regard to Accounts and Records.
Who are required to maintain Accounts and records in GST?
As per Section 35 of the CGST Act, every registered person shall keep and maintain Accounts and records.
Where should the Accounts and records be maintained?
A true and correct account shall be maintained at the principal place of business, as mentioned in the certificate of registration.
What if there are more than one place in the Registration Certificate ?
In case, more than one place of business is mentioned in the Certificate of Registration, the accounts of each of the place of businesses shall be maintained at such places of business.
In what form the accounts be maintained?
The tax payer can maintain accounts and records either in Manual form or electronic form. However each volume of books of account maintained manually by the registered person shall be serially numbered
What are the accounts and records to be maintained ?
Every registered person shall maintain the following accounts and records :-
(a) accounts of stock in respect of goods received and supplied; and such account shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and balance of stock including raw materials, finished goods, scrap and wastage thereof
(b) a separate account of advances received, paid and adjustments made thereto
(c) an account containing the details of tax payable, tax collected and paid, input tax, input tax credit claimed together with a register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period
(d) names and complete addresses of suppliers from whom goods or services chargeable to tax under the Act, have been received
(e) names and complete addresses of the persons to whom supplies have been made
(f) the complete addresses of the premises where the goods are stored including goods stored during transit along with the particulars of the stock stored therein
(g) monthly production accounts showing the quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof
(h) accounts showing the quantitative details of goods used in the provision of services, details of input services utilised and the services supplied
(i) separate accounts for works contract showing –
• the names and addresses of the persons on whose behalf the works contract is executed
• description, value and quantity (wherever applicable) of goods or services received for the execution of works contract
• description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract
• the details of payment received in respect of each works contract and
• the names and addresses of suppliers from whom he has received goods or services
CAN WE CORRECT THE ENTRIES IN THE ACCOUNTS AND RECORDS ?
Any entry in registers, accounts and documents shall not be erased, effaced or overwritten and all incorrect entries, other than those of clerical nature, shall be scored out under attestation and thereafter the correct entry shall be recorded
WHAT ABOUT CORRECTION OF ACCOUNTS AND RECORDS IN ELECTRONIC FORM?
where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained.
WHATS THE PERIOD FOR PRESERVATION OF ACCOUNTS ?
All accounts maintained together with all invoices, bills of supply, credit and debit notes, and delivery challans relating to stocks, deliveries, inward supply and outward supply shall be preserved for seventy two months (six years) from the due date of furnishing of annual return for the year pertaining to such accounts and records and shall be kept at every related place of business mentioned in the certificate of registration.
IS THERE ANY SPECIAL REQUIREMENT FOR ELECTRONIC MAINTENANCE OF ACCOUNTS ?
The following requirements have been prescribed for maintenance of records in electronic form.
• Proper electronic back-up of records
• Produce, on demand, the relevant records or documents, duly authenticated, in hard copy or in any electronically readable format
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