Maintenance of Accounts and Records under GST By Rohit Kumar (CA/CS/CMA)


Update Category
Maintenance of Accounts and Records under GST Regime
Update Source
GST Laws and Rules
Release No.
TM/GST/071 dated 17th May 2020
 
Accounts and Records under GST –

In recent times, Government has enhanced its vigilance to curb the menace of excess claim of ITC or fake invoicing. Department has stepped up investigation against such activities and in many cases genuine taxpayers also face the heat of notices for reversal of Input Tax Credit or payment of tax for fake invoicing.

During detailed investigation the taxpayer at time fail to furnish proper documents or records which is required to be maintained as per GST provisions and hence they engage in protracted litigation resulting in further agony and imposition of penalty.

GST Law prescribes detailed procedure for maintenance of books of accounts and records for goods or services or both. In the note below we have covered all such provisions for the ease of taxpayers. “Document” as defined under CGST Act, 2017 to include written or printed record of any sort and electronic record as defined in IT Act, 2000.

Chapter VIII of CGST Act, 2017 and Chapter VII of the CGST Rules, 2017 provides for maintenance of Accounts and Records. The detailed provisions governing said record keeping is outlined below -

A.     Place of maintenance of Accounts and Records –

Regd. Business Premises

Location of Records Retention

Single place of business

Principal Place of Business mentioned in its GST Registration Certificate

More than one Place of Business

Accounts for each place of business shall be kept at such places of business

 
B.      Exhaustive list of Accounts and Records to be maintained –

Category

Records to be maintained

Goods and Services

Details of Production or Manufacture of Goods

Inward and Outward Supply of goods or Services or both

Stock details of goods

ITC Availed on Goods or Services or both

Output Tax Payable and Paid

Import and export of goods or Services or both

Supplies attracting Reverse Charge Mechanism or Services or both

Details of Relevant Documents including Invoices, bill of supply, delivery challans, Credit Notes, Debit Notes, Receipt Voucher, Payment Vouchers and Refund Vouchers related to Goods or Services or both

Such other details as required

Details of Manufacture of Goods

Monthly production accounts showing quantitative details of raw materials or services used in the manufacture

Quantitative details of goods manufactured including the waste and by-products thereof

Details of supply of Service

Quantitative details of goods used in the provision of services

Details of input services utilized; and

Details of services supplied.

Stock Details

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

Advances

Details of advance received, paid and adjustments made thereto

Supplier Details

Names and complete addresses of suppliers from whom he has received taxable goods or services

Customer Details

Names and complete addresses of the persons to whom he has supplied goods or services (Exception – If the customer is unregistered and value of supply is more than Rs 50,000 then name and address of recipient and address of delivery along with State Name and State Code is required)

If the Value of supply to an Unregistered Recipient is less than Rs 50,000, above details may be mentioned on tax invoice on request of such buyer.

Details of Storage of Goods

Complete address of the premises where goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein

Note - If any taxable goods are found at any place(s) other than those declared above without any valid documents, Officer may determine tax payable on such goods, as if such goods have been supplied by the registered person.

 
C.      Accounts and Records to be maintained by Transporters and Operator of Warehouse or Godown –

Transporter

Warehouse or Godown Operator

Goods transported, delivered and goods stored in transit by him

GSTIN of the registered consigner and consignee for each of his branches

Records with respect to the period for which particular goods remain in the warehouse

Also particulars relating to dispatch, movement, receipt and disposal of such goods.

 

To store the goods in such manner that they can be identified item-wise and owner-wise

Facilitate any physical verification or inspection by the proper officer on demand.


D.     Manner of maintenance of Accounts and Records -

Heading

Details

Place for keeping books of Accounts

Books of accounts to be kept at principal place of business and books of account relating to additional place of business mentioned in his GST registration certificate

Books of account shall include any electronic form of data stored on any electronic device

Manner of Entry and correction thereof (Manual)

Any entry in registers, accounts and documents  - Not to be erased, effaced or overwritten

Any incorrect entries – (other than clerical nature) - to be scored out under attestation and there-after the correct entry shall be recorded

Each volume of books of account maintained manually shall be serially numbered

Manner of Entry and correction thereof (Electronic)

A log of every entry edited or deleted shall be maintained

The records may be maintained in electronic form and shall be authenticated by means of a digital signature

If books are found at a place other than the place mentioned in GST Registered Certificate

It shall be assumed that the Registered Person is maintaining the records at that place

Production on Demand

The books of accounts which he is required to maintained shall have be produced on demand

 
E.      Special provisions for Electronic Records  –

Electronic Records

Details

Back up of Electronic Records and restoration thereof

Proper electronic back-up of records shall be maintained and preserved so that in the event of destruction due to accidents or natural causes, it can be restored within a reasonable period of time

Production of Electronic Records

The duly authenticated relevant records or documents may be produced on demand,

Same may be produced either, in hard copy, or in any electronically readable format.

Details of such files, passwords of such files and explanation for codes used, where necessary, for access and any other information which is required for such access along with a sample copy in print form of the information stored in such files is to be produced on demand


F.       Period of retention of books of Accounts –

Situation

Period for which Books of Accounts to be retained

Period of retention (Other wise than in appeal or revision or proceedings pending)

72 (seventy-two) months from the due date of furnishing of annual return for the year pertaining to such accounts and records

Example – Books of Accounts for 2017-18 is to be preserved till 31st January 2026 (Since the due date for furnishing Annual Return for 2017-18 was 31st January, 2020)

For any ongoing appeal or revision or any other proceedings

Accounts to be preserved for a period later of the two –

72 (seventy-two) months from the due date of furnishing of annual return for the year pertaining to such accounts and records; or

A period of one year after final disposal of such appeal or revision or proceedings or investigation

 

Click here to read the disclaimer


Write a Comment