GST Accounts & Records

GST Accounts & Records: Introduction of GST as a new indirect taxation regime would be advantageous to the entire community including citizens, Government as well as the trade bodies. With the implementation of GST, the tax system would become much simpler due to the elimination of cascading effect and transparency in taxation system, resulting in almost uniform prices across the country. GST would herald an era of cooperative federalism and would bring efficiency and transparency in tax administration. Now check more details about “GST Accounts & Records” from below…

Applicable Provisions

Section 35 and 36 of the CGST Act
Draft Accounts & Records Rules as notified on April 19, 2017.

Applicable on

All registered persons.
Unregistered persons being owner or operator of warehouse/godown/any other place used for storage of goods.

Specified Books of Accounts

Inward/Outward supply of goods and/or services
Names & complete addresses of the inward/outward suppliers
Stock of goods wrt each commodity received/ supplied
Particulars of good lost, stolen, destroyed, written off or disposed of by way of gift or free samples
Stock of scrap and wastage.
Input tax credit availed
Output tax payable and paid
Goods or services imported or exported
Supplies attracting tax on reverse charge
Advances received and paid and adjustments relating thereto

The aforesaid accounts shall be maintained separately for every activity undertaken such as manufacturing, trading, provisions of service etc

The Commissioner or Chief Commissioner may add more records to be maintained.

Further owner or operator of a place of storage of goods, to maintain –

Details of consignor, consignee
Other prescribed details such as receipt, movement and disposal of goods.

The stock of goods to be maintained in such a manner as identifiable item-wise and owner wise.

If not registered to submit details of business in Form GST ENR-01 for deeming regn. under these rules.

Relevant Documents

The taxpayer should keep and maintain all the important documents including

Invoices
Bills of supply and delivery challans,
Credit and Debit notes,
Receipt and payment vouchers,
Refund vouchers and
E-way bills.

Place of Maintenance

At the principal place of business as specified in registration certificate.
If multiple places of business specified in the certificate of GST registration, then to be kept at the related business places.

Maintenance of Records in Electronic Form

Allowed to maintain accounts in electronic form in manner to be prescribed
Proper backup of electronic records to be kept.
On demand produce duly authenticated copies of records stored electronically as hard copy or in electronically readable format

How to Rectify Incorrect Entries in Accounts

No entries to be erased effaced or overwritten.
Incorrect entries to be scored out under attestation and thereafter correct entry be recorded.
Log of every entry edited or deleted to be kept where electronic records maintained.

Additional accounts required to be maintained by the following class of suppliers:-

Manufacturer

Monthly production accounts with quantitative details-

Raw materials or services used in the manufacture of goods manufactured including waste & by products thereof.
(Similar to excise records maintained under the current regime.)

Service Provider

Accounts showing the

Quantitative details of goods used in the provision of each service
Details of input services utilised and the services supplied.

Agent

On behalf of each Principal the following particulars need to be maintained in respect of goods & services received or supplied

Authorization received.
Description, Value & Qty of goods/services received on behalf of principal and tax paid on supply thereof.
Details of accounts furnished to principal

Works Contractor

For each works contract received

The names & addresses of the contractee.
Details of payment received
Description, Value & Qty received/utilized of goods/services for each works contract
The names & addresses of suppliers from whom received.
Payments made wrt each works contract.

ACCOUNTS & RECORDS – AGENT

Section 2(5) to the CGST Act,2017 sums up agent as meaning a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another

Chapter VII of CGST Rules, 2017 deals with Accounts & Records Rules and Rule 56 specifies the records to be maintained by an agent. Rule 56(11) states that every agent referred to in clause (5) of section 2 shall maintain accounts depicting the following:

particulars of authorisation received by him from each principal to receive or supply goods or services on behalf of such principal separately
particulars including description, value and quantity (wherever applicable) of goods or services received on behalf of every principal
particulars including description, value and quantity (wherever applicable) of goods or services supplied on behalf of every principal
details of accounts furnished to every principal; and (e) tax paid on receipts or on supply of goods or services effected on behalf of every principal

Requirement of Audit – If turnover > Rs.2 Crore

By Chartered/Cost Accountant.
Copy of audited annual accounts and reconciliation statement to be submitted in form GSTR 9B while filing the annual return in Form GSTR-9.
In Reconciliation statement, Chartered Accountant to certify that values declared in GST return reconciles with the audited accounts.

Period of Retention

Seventy-two months (6 Years) from the last date of filing of Annual Return for the relevant year.
Records being subject matter of litigation to be retained
- 1 year from the date of final disposal of proceeding, or
- until the expiry of 6 years from the due date of the annual return.

Whichever is later

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