ACCOUNTS AND RECORDS IN GST

[R.S. Mangal]

The GST regime has just been implemented, hence it is upmost necessary to understand the provisions related to accounts and records by every registered persons. The relevant provisions of law in GST regarding Accounts and Records are detailed in Section 35 and Section 36 of Central Goods and Service Tax Act, 2017 read with Rule 56 to 58 of Central Goods and Service Tax Rules, 2017. . These provisions are discussed below-

The registered person shall keep and maintain Books of accounts at his principal place of business and if having more than one place of business then accounts related to such additional place at such places keeping a true and correct account of–

1. Production of Goods i.e. monthly production accounts showing 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;

Services like the accounts showing quantitative details of goods used in the provision of services, details of input services utilised and the services supplied

(b) Supply both inward and outward of goods or services or both;

(c) Accounts of stock of  each commodity of goods including (i)raw materials,(ii) finished goods,(iii) scrap and (iv)wastage    like-   Opening Balance, receipt, supply,  goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and the closing  stock. ( Not applicable on person under Composition scheme).

(d) ITC Availed;

(e) Record of output  tax payable, tax payable on RCM, TDS Collected and paid. ( Not applicable on person under Composition scheme).

           (f) the goods or services imported or exported

          (g) RCM Supplies , supplies attracting payment of tax on reverse charge

        (h) a separate account of advances received, paid and adjustments made thereto

       (i)  Documents like invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers and refund vouchers also a register of tax invoice, credit notes, debit notes, delivery challan issued or received during any tax period.

(j) names and complete addresses of suppliers from whom he has received the goods or services chargeable to tax under the Act;

(k) names and complete addresses of the persons to whom he has supplied goods or services, where required under the provisions of GST Rules;

(l) the complete address of the premises where goods are stored by him, including goods stored during transit .

 (m) Special record for  works contract showing -

(i) the names and addresses of the persons on whose behalf the works contract is executed;

(ii) description, value and quantity (wherever applicable) of goods or services received for the execution of works contract;

(iii) description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract;

(iv) the details of payment received in respect of each works contract; and

(v) the names and addresses of suppliers from whom he received goods or services.

(n)  In case of  agent, he shall maintain accounts depicting the,-

(i) particulars of authorisation received by him from each principal to receive or supply goods or services on behalf of such principal separately;

(ii) particulars including description, value and quantity (wherever applicable) of goods or services received on behalf of every principal;

(iii) particulars including description, value and quantity (wherever applicable) of goods or services supplied on behalf of every principal;

(iv) details of accounts furnished to every principal; and

(v) tax paid on receipts or on supply of goods or services effected on behalf of every principal.

(o)   A carrier or a clearing and forwarding agent shall maintain true and correct records in respect of such goods handled by him on behalf of such registered person

(p)  Owner or operator of warehouse or godown and every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods

        Special provisions for such persons –

1. Such person, if unregistered, shall get unique enrolment number  through the common portal by filing FORM GST ENR-01
2. The person enrolled under sub-rule (1) as aforesaid in any other State or Union territory shall be deemed to be enrolled in the State or Union territory.
3. Transporters shall maintain records of goods transported, delivered and goods stored in transit by him along-with the Goods and Services Tax Identification Number of the registered consigner and consignee for each of his branches.
4. 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.
5. 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.

Other provisions

1. GST Audit for registered person having turnover exceeding ₹ 2 crore, by CA or ICWA.
2. Retention of books and accounts until the expiry of seventy-two months from the due date of furnishing of annual return for the year pertaining to such accounts and records. But in case of litigation then for a period of one year after final disposal or 72 months as above whichever is later.
3. Any entry in registers, accounts and documents shall not be erased, effaced or overwritten, and all incorrect entries, otherwise than those of clerical nature, shall be scored out under attestation and thereafter, the correct entry shall be recorded and where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained.
4. Electronic Records can be kept , requirement are (i) proper electronic back-up of records, (ii) such records to be authenticated by means of a digital signature, (iii) required to be produced when demanded by proper officer.
5. Every Volume of books of accounts maintained shall be serially numbered.