GST Course

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Accounts and Other Records

Every registered person is required to keep and maintain all records at his principal place of business.

Who must maintain accounts under GST?

It is the responsibility of the following persons to maintain specified records-

  • The owner
  • Operator of warehouse or godown or any other place used for storage of goods
  • Every transporter

Every registered person whose turnover during a financial year exceeds the prescribed limit

(2 crore) will get his accounts audited by a chartered accountant or a cost accountant.

What records must be maintained under GST?

Every registered person must maintain records of-

  • Production or manufacture of goods
  • Inward and outward supply of goods or services or both (Purchase and Sales Register)
  • Stock of goods (Inventory Register)
  • Input tax credit availed (Electronic Credit Ledger)
  • Output tax payable and paid and (Electronic Liability and Electronic Cash Ledger)
  • Other particulars as may be prescribed

Records

Information Required

By Whom?

Register of Goods Produced

Account should contain detail of goods manufactured in a factory or production house

Every Assessee carrying out manufacturing activity

Purchase Register

All the purchases made within a tax period for manufacturing of goods or provision of services

All Assessee

Sales Register

Account of all the sales made within a tax period must be maintained

All Assessee

Stock Register

This register should contain a correct stock of inventory available at any given point of time

All Assessee

Input Tax Credit Availed

This register should maintain the details of Input Tax Credit availed for a given tax period

All Assessee

Output Tax Liability 

This register should maintain the details of GST liability outstanding to be adjusted against input credit or paid out directly

All Assessee

Output Tax Paid

This register should maintain the details of GST paid for a particular tax period

All Assessee

Other Records Specified

Government can further specify by way of a notification, additional records and accounts to be maintained

Specific Businesses as notified by the government


Electronic Cash and Credit Ledger

Every registered taxpayer will have 3 ledgers under GST which will be generated automatically at the time of registration and will be maintained electronically.

Electronic Cash Ledger- This ledger will serve as an electronic wallet.  The taxpayer will have to deposit money into his cash ledger (add money to the wallet). The money will be utilized to make the payment.

Electronic Credit Ledger- The input tax credit on purchases will be reflected here under three categories i.e IGST, CGST & SGST. The taxpayer will be able to utilize the balance shown in this account only for payment of tax (not for interest, penalty etc.)

E-Liability Ledger: This ledger will show the total tax liability of a taxpayer after netting off for the month. This ledger will be auto-populated.

Period for Retention of Accounts under GST

As per the GST Act, every registered taxable person must maintain the accounts books and records for at least 72 months (6 years). The period will be counted from the last date of filing of Annual Return for that year.

The last date of filing the Annual return is 31st December of the following year.

For example:

For the year 2017-2018, the due date of filing the annual return is 31.12.2018. The books & records of 2017-2018 must be maintained for 6 years, i.e., 31.12.2023

If the taxpayer is a part of any proceedings before any authority (First Appellate) or is under investigation, then he must maintain the books for 1 year after the order of such proceedings/appeal has been passed.

Consequences of Not Maintaining Proper Records

If the taxpayer fails to maintain proper records in respect of goods/services, then the proper officer shall treat such unaccounted goods/services as if the taxpayer had supplied them. The officer will determine the tax liability on such unaccounted goods.

The taxable person will be required to pay the tax liability calculated along with penalty.

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice. Neither the authors accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.


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Category GST, Other Articles by - DHARMESH BABUBHAI MISTRY 



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