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Accounts and Records-IThis article is the first article of the series of articles on accounts and records to be maintained under GST based on GST Act and Accounts and Records Rules. This article does not cover special requirements for warehouse owners, transporters, works contract, agents, maintenance of records in electronic format, editing of records, consequences of non -compliance etc. which have been dealt in separate articles.

Every registered taxable person must keep and maintain at his principal place of business mentioned in certificate of registration True and correct account of

  1. Production or manufacture of goods.
  2. Inward and outward supply of goods/services.
  3. Stock of goods.
  4. Input credit availed.
  5. Output tax payable and paid.
  6. Goods or services imported or exported.
  7. Supplies attracting payment of tax on reverse charge.
  8. Separate account of advances received, paid and adjustments made thereto.
  9. Names and complete addresses of suppliers from whom he has received the goods or services.
  10. Names and complete addresses of the persons to whom he has supplied the goods or services.
  11. The complete addresses of the premises where the goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein.
  12. Invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers e-way bills and other relevant documents.

The account or records specified as aforesaid shall be maintained separately for each activity including manufacturing, trading and provision of services, etc. Further where more than place is specified in registration certificate, the accounts related to each place has to be kept as respective location. For example if we have 2 showrooms mentioned in RC than records has to be kept at both the showrooms. It is permissible to maintain records in electronic format.

Every registered person other than composition dealer is required to maintain accounts of stock in respect of each commodity received and supplied by him, and such account shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and balance of stock including raw materials, finished goods, scrap and wastage thereof.

Every registered person other than composition dealer is required to maintain accounts containing the details of tax payable including under reverse charge, tax collected and paid, input tax, input tax credit claimed, together with a register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period.

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

The commissioner is empowered to notify class of taxable persons who will be required to maintain additional records. Where the Commissioner considers that any class of taxable persons is not in a position to keep and maintain accounts in accordance with the provisions of this section, 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.

Every taxable person with turnover exceeding the prescribed limit has to get his accounts audited by a CA or a CMA and submit a copy of audited accounts to the proper officer, along with reconciliation and other prescribed documents.

The records have to be preserved for a period of 72 months from the due date for filing annual return in respect of the relevant financial year. For example if the due of filing annual return is 30.09.2018 than in that case return has to be preserved till 30.09.2024

In respect of cases pertaining to appeal, revision, investigation etc. the records has to preserved either till one year after the final disposal of the case or 72 months as above described whichever is later.

The purpose of this article is to create awareness about the soon to be implemented Goods and Service Tax in India.

ca rishabhkumarThe author is a fellow member of the Institute of Chartered Accountants of India and also a qualified Company Secretary. The author has also done DISA(ICAI), certificate on IFRS (ICAI), Certificate on Forex and Treasury Management (ICAI), Certificate on Forensic Accounting and Fraud Prevention (ICAI). The author practices as a Chartered Accountant under the name and style of Rishabh Kumar Barmecha and Associates and is an expert in auditing, financial investigation, direct and indirect taxation. The author can be reached at rishabhkumarbarmecha@gmail.com or 91 9007909221 or Twitter @CARKBarmecha.
CA Rishabh Kumar Barmecha

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