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What are the records must be maintained under GST?

Accounts and records in GST

Goods and Services Tax (GST) is a tax reform which eliminates India’s major indirect taxes like Excise, Service Tax, and VAT. Every taxpayer registered under GST requires to keep and maintain all records at his principal place of business. GST Law prescribes detailed procedure for maintenance of books of accounts and records for goods or services or both. The taxpayer can maintain the above records in electronic format or physical format. Very importantly, the record should be secured in a non-editable format. Without proper accounting its very difficult for a management to record and maintain these books of accounts.

Records must be maintained under GST

Section 35 of the CGST Act, 2017 provides that a registered person shall keep and maintain, at his principal place of business. It has cast the responsibility on the owner or operator of warehouse or godown or any other place used for storage of goods and on every transporter to maintain specified records. It also provides that every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant. Every registered person, as mentioned in the certificate of registration, must maintain a true and correct account of the following:
  • production or manufacture of goods;
  • inward and outward supply of goods or services or both;
  • stock of goods;
  • input tax credit availed;
  • output tax payable and paid; and
  • such other particulars as may be prescribed.

In addition, the rules also provide that the registered person shall keep and maintain records of

  • goods or services imported or exported; or
  • supplies attracting payment of tax on reverse charge

The registrant must also maintain other documents including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers, and electronic way (e-way) bills. Additionally, there must be separate records for each activity like, manufacturing, trading, and the provision of services. Records must be in serially-numbered account books and include the following information:

  • Names and complete addresses of suppliers
  • Names and complete addresses of customers
  • Address of all premises where the goods stores, including goods stores during transit, and descriptions of the stock stores

Period for retaining books of Accounts and other records

As per the GST Act, every registered taxable person must maintain the accounts books and records for at least 72 months (6 years). The period counts from the last date of filing of Annual Return for that year.
The last date of filing the Annual return is 31st December of the following year.
If the taxpayer is a part of any proceedings before any authority (First Appellate) or is under investigation then he must maintain the books for 1 year after the order of such proceedings/appeal has been passed.

Production of Books of Accounts

A registrant shall, on demand, produce the books of accounts which he is required to maintain under any law in force. The accounting records under these rules may be maintained in electronic form and the record so maintained shall be authenticated by means of a digital signature.

Records to be maintained by Manufacturers

  • Monthly production accounts showing quantitative details of raw materials or services used in the manufacture
  • Quantitative details of goods manufactured during the specific period
  • Quantitative details related to the by-products and waste generated during the specific period of time.
  • Stock Details of Goods: Account of Opening Balance, receipts, supplies, and closing balance of stock of raw materials, finished goods, scrap and wastage. Details of goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample to be kept
  • Details of advance received, paid and adjustments made thereto
  • Names and complete addresses of the persons to whom he has supplied goods or services
  • Names and complete addresses of suppliers from whom he has received taxable goods or services
  • Complete address of the premises where the goods stores

Accounts and Records to be maintained by Transporters

Transporters must maintain records of :

  • goods transported, delivered and stored in transit
  • GSTIN of the registered consignee.

In addition to the above, transporters would also require e-way bill registration for carrying on the business of transporters.

By Clearing and Forwarding Agents

In addition to the book of accounts, all clearing and forwarding agents must maintain:

  • all the details of delivery/dispatch of goods
  • record of goods handled.

 Service Providers

All service providers should maintain the details of:

  • goods used for providing services,
  • input services used during the period and services provided during the tax period.

In the case of workforce providers, the following details must also be maintained:

  • Names and addresses of persons contracted as workers, description, value, and quantity of goods and services received for the execution of work
  • Name and address of the suppliers and details of payment received in respect of each contract.

Agencies

Agencies should maintain the below following details under GST:

  • Particulars of authorization received by him from each principal
  • Particulars including description, value, and quantity of goods and services received and supplied on behalf of every principal.
  • Details of accounts furnished to every principal.
  • Tax paid on receipts or the supply of goods or services effected on behalf of every principal.

By person executing Works Contract

  • The names and addresses of the persons on whose behalf the works contract executes;
  • 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;
  • Details of payment received in respect of each work contract; and
  • The names and addresses of suppliers from whom he received goods or services.

Consequences of Not Maintaining Proper Records

If the taxpayer fails to maintain proper accounting records in respect of goods and services, then the proper officer shall treat such unaccounted goods and services as if the taxpayer had supplied them. The officer will determine the tax liability on such unaccounted goods. The taxable person requires to pay the tax liability calculated along with penalty.

HAAB Accounting is an experienced accounting services provider and the best bookkeeping firm in India and UAE. We can help you for preparing and maintaining the Accounting Books and records as per GST regulations. Contact us to get free consultation on maintaining proper books and records. You can also get in touch for accounting services, payroll services, virtual accounting services and other tax-related services in India.

HAAB Accounting Consultancy as one of the best GST/Accounting Consultancy & payroll services provider firm in Trivandrum have well experienced Accounting/Tax professionals . Surely they can advise you on all Tax related matters as well. Which enable you to take better decision also. Contact our GST consultants in Trivandrum, India

Mr Shabeer S (Senior Consultant -GST)

0091 9037334498

Our Trivandrum Office Address

Office No. 02, TC 31/260, Viswa Lekshmi Tower, Pipe Line Road
Bappuji Junction, Peroorkada, Thiruvananthapuram.
Kerala, India, PIN 695005