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ACCOUNTS AND RECORDS TO BE MAINTAINED UNDER GST LAWS

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ACCOUNTS AND RECORDS TO BE MAINTAINED UNDER GST LAWS
By: Mr.M. GOVINDARAJAN
October 9, 2019
All Articles by: Mr.M. GOVINDARAJAN       View Profile
  • Contents

Accounts to be maintained

  • Section 35(1) requires that every registered person shall keep and maintain a true and correct account of the following at his principal place of business-
  •  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.
  • Rule 56 provides that in addition to the information contained in section 35(1), a true and correct account of-
  • the goods or services imported or exported; or
  • of supplies attracting payment of tax on reverse charge

along with the relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers and refund vouchers.

  •  Where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business.
  •  Every registered person shall keep and maintain a separate account of advances received, paid and adjustments made thereto.
  •  Every registered person shall keep the books of account at the principal place of business and books of account relating to additional place of business mentioned in his certificate of registration and such books of account shall include any electronic form of data stored on any electronic device.
  •  Each volume of books of account maintained manually by the registered person shall be serially numbered.
  •  The Commissioner may notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified therein.
  • If the Commissioner considers that any class of taxable person is not in a position to keep and maintain accounts, he may, for reasons to be recorded in writing, permit such class of taxable persons to maintain accounts in such manner as may be prescribed.
  • 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.

Composition dealer

  • The composition dealer shall maintain the accounts of stock in respect of goods received and supplied by him, and such accounts shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and the balance of stock including raw materials, finished goods, scrap and wastage thereof.
  • The composition dealer shall keep and maintain an account, containing the details of-
  • tax payable (including tax payable on reverse charge basis),
  • tax collected and paid,
  • input tax,
  • input tax credit claimed,

together with a register of tax invoice, credit notes, debit notes, delivery challan issued or received during any tax period.

Period of retention of accounts

  • Section 36 provides that every registered person required keeping and maintaining books of account or other records shall retain them until the expiry of 72 months from the due date of furnishing of annual return for the year pertaining to such accounts and records.
  • A registered person, who is a party to an appeal or revision or any other proceedings before any Appellate Authority or Revisional Authority or Appellate Tribunal or court, whether filed by him or by the Commissioner, or is under investigation for an offence under Chapter XIX, shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of 1 year after final disposal of such appeal or revision or proceedings or investigation, or for the period specified above, whichever is later. 
  • Accounts maintained by the registered person together with all the invoices, bills of supply, credit and debit notes, and delivery challans relating to stocks, deliveries, inward supply and outward supply shall be preserved for the period of 72 months.
  • Where such accounts and documents are maintained manually, the same shall be kept at every related place of business mentioned in the certificate of registration and shall be accessible at every related place of business where such accounts and documents are maintained digitally.

Details of supplier

  • Every registered person shall keep the particulars of –
  •  names and complete addresses of suppliers from whom he has received the goods or services chargeable to tax under the Act;
  • names and complete addresses of the persons to whom he has supplied goods or services, where required under the provisions of  Chapter VII;
  • the 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.

Documents to be maintained by an agent

  • Every agent shall maintain accounts depicting the-
  •  particulars of authorization 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
  • tax paid on receipts or on supply of goods or services effected on behalf of every principal.

Documents to be maintained by Clearing and forwarding agent

  • Any person having custody over the goods in the capacity of a carrier or a clearing and forwarding agent for delivery or dispatch thereof to a recipient on behalf of any registered person shall maintain true and correct records in respect of such goods handled by him on behalf of such registered person and shall produce the details thereof as and when required by the proper officer.

Documents for manufacturing goods

  •  Every registered person manufacturing goods shall maintain 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 thereof.

Documents for supply of services

  • Every registered person supplying services shall maintain the accounts showing quantitative details of goods used in the provision of services, details of input services utilized and the services supplied.

Documents for works contract

Every registered person executing works contract shall keep separate accounts for works contract showing-

  • the names and addresses of the persons on whose behalf the works contract is executed;
  •  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;
  • the details of payment received in respect of each works contract; and
  • the names and addresses of suppliers from whom he received goods or services.

Production of documents

  • Every registered person shall, on demand, produce the books of accounts which he is required to maintain under any law for the time being in force.

Presumption

  • Unless proved otherwise, if any documents, registers, or any books of account belonging to a registered person are found at any premises other than those mentioned in the certificate of registration, they shall be presumed to be maintained by the said registered person.

 

By: Mr.M. GOVINDARAJAN - October 9, 2019

 

Discussions to this article

 

Nice article Sir. This is the third financial year since the introduction of GST. The tax payer might not have considered all the reports required under gst and maintained it. This is now expected by the government that now onward all the required compliances should be correcty and appropriately done by the tax payer. Issue of proper invoice, record keeping, paying tax, filing return, self invoicing, payment voucher etc.should be correct. Thanks for reminding the readers.

By: Ganeshan Kalyani
Dated: 10/10/2019

 

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