Under the Goods and Services Tax law, the taxpayer is required to maintain certain documents, accounts, and records in respect manufacturing, trading or provision of services. In this article, we will discuss all the aspects related to maintenance of Accounts and Record under GST.
Types of Accounts and Records Required GST
The registered taxpayer should keep and maintain following types of accounts and other records:
|Sale (Outward Supply)||All particulars of outward supply of goods and services during the tax period including the name and complete address of buyer|
|Purchase (Inward Supply)||All details of Inward Supply of Goods and Services made including the name and complete address of supplier.|
|Production||All the details of Goods Manufactured or Produced by the Taxpayer|
|Stock of Goods Received and Supplied.||Opening balance, receipt, supply, goods lost, stolen,|
destroyed, written off or disposed of by way of gift or free samples and closing balance of stock
including raw materials, finished goods, scrap and wastage thereof
|Input Tax Credit||Information of input tax credit availed on inward supplies of goods and services|
|Output Tax||Information of output tax payable on outward supply of goods and services|
|Tax Paid||Details of tax payable, tax paid by utilization of input credit and tax paid in cash during the period.|
|Import||All information related to Goods or Services Imported during the tax period|
|Export||All the details of Goods or Services Exported during tax period|
|Reverse Charge (Outward Supplies)||Details of outward supplies of goods or services on which tax is payable under reverse charge.|
|Reverse Charge (Inward Supplies)||Information of inward supplies attracting tax under reverse|
|Advances Received||Details of Advances received by the taxpayer and adjustments made thereto|
|Advances Paid||Information of advances paid and adjustments made thereto|
The taxpayer should keep and maintain all the important documents including Invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills.
Other Important Points Related to Maintenance of Accounts and Records
Place of Maintenance
The taxpayer shall keep the books of accounts and other records at the principal place of business. If multiple places of business are specified in the certificate of GST registration, then accounts and records shall be kept at the related business places.
Period For Retention
The registered taxpayer shall retain the accounts and other records until the expiry of seventy-two months (6 Years) from the last date of filing of Annual Return (GSTR-9) for the year related such accounts and records.
Example: Period of Retention for Accounts of Financial Year 2017-18 – If the annual return for the FY 2017-18 is filed on say 30.12.2018, then the books of account and other records are to be maintained till 30.12.2024.
Period of Retention, in Case of Pending Proceedings
If any proceeding (appeal, revision etc.) is pending before any GST Appellate Authority or Tribunal or Court, then the taxpayer shall retain the accounts related to the subject matter of such proceeding:
- (a)until the expiry of 1 year from the date of final disposal proceeding, or for the period specified records u/s 42(1), whichever is later or
- (b)until the expiry of 6 years from the due date of the annual return.
Whichever is later.
Maintenance of Records in Electronic Form
The taxpayer can also maintain accounts and other in electronic form. The records maintained in electronic form shall be authenticated through digital signature. The taxpayer shall produce authenticated hard copy of records and documents whenever demanded by the department.
Backup of Electronic Records
The taxpayer shall maintain a proper backup of electronic records so that information can be restored in the incident of destruction of records.
Requirement of Audit – If turnover exceeds Rs. 1 Crore
A taxpayer whose turnover is more than Rs. 1 crore in a financial year shall get his accounts audited by a Chartered Accountant or Cost Accountant. A copy of audited annual accounts and reconciliation statement is required to be submitted in form GSTR-9B while filing the annual return in Form GSTR-9.
In Reconciliation statement, the Chartered Accountant certifies that the values declared in GST return reconciles with the audited accounts.
How to Rectify Incorrect Entries in Accounts
Any incorrect entry in documents, accounts or records, shall no be erased, effaced or overwritten. The incorrect entries shall be scored out under attestation and thereafter correct entry shall be recorded.
In case the accounts are maintained electronically, the taxpayer shall maintain a log of every entry edited or deleted in electronic records.
If Accounts Books are found at other Premises
The taxpayer shall maintain the book of accounts and other documents at the relevant business places specified in the registration certificate. If any document, accounts or register belonging to the assessee, is found at any other than places then it shall be presumed that the books were maintained by said assessee.
Books of Accounts to be Maintained by an Agent
(a) particulars of authorization received by him from each principal to receive or supply goods or services on behalf of such principal separately;
(b) particulars including description, value and quantity(wherever applicable) of goods or services received on behalf of every principal;
(c) particulars including description, value and quantity(wherever applicable) of goods or services supplied on behalf of every principal;
(d) 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.
(e) tax paid on receipts or on supply of goods or services effected on behalf of every principal.
Books and Accounts to be Maintained by a Work Contractor
(a) the names and addresses of the persons on whose behalf the works contract is executed;
(b) description, value and quantity(wherever applicable) of goods or services received for the execution of works contract;
(c) description, value and quantity(wherever applicable) of goods or services utilised in the execution of each works contract;
(d) the details of payment received in respect of each works contract; and (e) the names and addresses of suppliers from whom he has received goods or services.
Records to be maintained by owner or operator of godown or warehouse
Every owner or operator of a warehouse or godown shall maintain books of accounts, with respect to the period for which particular goods remain in the warehouse, including the particulars relating to dispatch, movement, receipt, and disposal of such goods. The owner or the operator of the godown shall store the goods in such manner that they can be identified item wise and owner wise and shall facilitate any physical verification or inspection by the proper officer on demand.
Records to be Maintained by a Transporter
Any person engaged in the business of transporting goods shall maintain records of goods transported, delivered and goods stored in transit by him and for each of his branches.