If you are recently take GST Registration and doesn’t know what Accounts and Records to be maintained under GST Laws and Rules thereunder. also if you already registered and want to make effective Tax Management by following all compliances related to GST then Definitely this article is for you.
If you are not Registered and wants to check eligibility you can refer GST Registration Requirements.
Every Registered Person under GST required to maintain some set of accounts and records for predefined Period.
We will discussed one by one for every type of registered person as well as for Special Cases.
Table of Contents
Place of Maintain of Accounts and Records under GST
As per Section 35(1) of CGST Act, 2017;
Books of Accounts to be kept and maintained at Principal Place of Business or Additional Place of Business where such business activity carried out.
Also, Books found at unregistered Premises deemed to belong to registered Person. (in case of Third Party Search or Surveys or Seizure etc.)
Maintain the Following Accounts
As per Section 35(1) of CGST Act, 2017;
- Production of Goods Registered
- Inward or Outward Supply of Goods or Services
- Stock of Goods or Inventory Register (Not Required in Composite Scheme)
- Output tax Payable/Paid (Not Required in Composite Scheme)
- ITC Availed
- Other Details like; Goods are kept other than declared location like, Consignment, Warehouse etc.
Maintain Records and Documents
As per CGST Rules;
- Tax Invoices, Delivery Challans, Credit Notes, Debit Notes and Vouchers Etc.
- Goods or Services Imported or Exported with Full Documentation.
- Supplies which is attract reverse Charge of Payment of Tax along with all details specified in Point 1
- Advances received or Paid or adjusted against any liability or supply.
- Keep Particulars of Name & Complete Address of Supplier, Recipient & Premises where goods are stored or transferred or Received.
Special Case for Accounts and Records to be Maintained
If you are in Following type of businesses than you are required to maintain following Accounts and Records along with the above mentioned Details.
Records to be Maintained by Agent
As per CGST Rule 56(11);
- Description value & Quantity of Goods are Services received on behalf of Every Principal Supplier.
- Description value & Quantity of Goods are Services supplied on behalf of Every Principal Supplier.
- Details of Authorization received from Every principal to receive or supply of Goods or Services.
- Details of Accounts/Ledgers Furnished by Every Principal Suppliers.
- Tax Paid on Receipts or Supply of Goods on behalf of Every Principal Suppliers.
Records to be Maintained by Manufacturer
As per CGST Rule 56(12);
- Monthly or Quarterly Production Accounts showing quantity of Raw Material or Service used in the manufacturing.
- Quantitative Details of Goods Manufactured, Scraped, By-Products Manufactured and waste Generated.
Records to be Maintained by Supplier of Services
As per CGST Rule 56(13);
- Quantitative Details of Goods used in Supply of Services
- Details of Input Services used in Supply of Services
- Details of Services Supplied
Records to be Maintained by Works Contractor
As per CGST Rule 56(14);
- Name and Address on behalf of Works Contract is executed.
- Description, value & Quantity of Goods or Services Received for Each Works Contract.
- Description, value & Quantity of Goods or Services Used for Each Works Contract.
- Details of Payment received for each Works Contract.
- Name and Address of Suppliers as well as Location Address where Work Contract Carried out.
Records to be Maintained by Clearing and Forwarding Agents
As per CGST Rule 56(17);
- Maintain True & Correct records of Goods handled on behalf of registered Person.
- Produce details as required by proper officer.
Procedures of Maintain of Accounts and Records
- Records to be maintain Physically or in electronic Mode or Both.
- Records to be produces to officer on demand along with Files and Passwords of Documents.
- No Entry to be erased or over written in Books or Documents.
- Manual Records must be serially numbered.
What if you fail to Maintain Accounts and Records
As per Section 35(6) of CGST Act, 2017;
If you are non maintain Accounts and Records then all non accounted Goods or Services regarded as Deemed Supply & Tax Payable on that deemed Supply.
Provision for Interest and Penalty under Section 73 and Section 74 Shall Apply and Required to pay Tax, Interest and Penalty.
Time Limit for Maintain and Retain the Accounts and Records
As per Section 36 of CGST Act, 2017;
Following Time Limit Applicable to Retention of Accounts and Records,
- 72 Months from due Date of Furnishing of Annual Return of Financial Year.
- If Subject matter is for Appeal or revision then Time limit to Retain Accounts and Records will be Later of Following:
- 1 Year from Final Disposal of Appel
- 72 Months from Due Date of Furnishing of Annual Return
Example: For Financial Year 2023-24
Annual Return Due Date is 31st December, 2024;
and Period counted is 72 Months from 31st December, 2024 which is 31st December, 2030.
it Means for All Records From 1st April, 2023 to 31st March, 2024 Required to retain till 31st December, 2030 Subject to other Laws time limit keep in mind.
Conclusive Summary
You Learned from this is an accounts and records that need to be maintained under GST laws and rules. It explains that registered persons under GST must keep books of accounts at their principal place of business or additional place of business.
And also lists the specific accounts and records that need to be maintained, such as production of goods registered, inward or outward supply of goods or services, stock of goods or inventory register, output tax payable/paid, ITC availed, and other details.
It further discusses the records that need to be maintained by agents, manufacturers, suppliers of services, works contractors, and clearing and forwarding agents. Also that records can be maintained physically or electronically, and they must be produced to the officer on demand.
Failure to maintain accounts and records can result in deemed supply and tax payable, along with interest and penalties. Also keep in mind a time limit for retaining accounts and records, which is 72 months from the due date of furnishing the annual return.
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