Under the GST (Goods and Service Tax) law, every taxpayer needs to retain certain set of accounts, records or documents in areas of trading, services or manufacturing.
We will be discussing here all aspects of such records and books to be kept under GST in this article.
Accounts & Records Required under the GST
Section 35 of CGST Act deals with Accounts and Records. All records should maintain by registered person at his principal place of business.
Any registered taxpayer is expected to keep & maintain certain accounts & records. These are:
|Outward Supply||All details related to outward supply (of goods and services) during tax period. Should include name & buyer’s complete address|
|Inward Supply||All details related to inward supply (of goods and services) during tax period. Should include name & supplier’s complete address|
|Stock (Goods received & Supplied)||Receipt, supply, opening balance, goods lost, destroyed, stolen, disposed or written off via free samples or gift. Stock closing information including finished goods, raw materials, scrap & wastage thereof|
|Production||All details related to goods produced or manufactured by taxpayer|
|Input-tax credit||All details availed on goods & service inward supplies|
|Output-tax credit||All details availed on goods & service inward supplies|
|Tax paid||Details of the tax payable & tax paid by input credit utilization|
|Import||All details related to the Goods/ services imported|
|Export||All details related to the Goods/ services exported|
|Outward Supplies||All details related to outward supplies|
|Inward Supplies||All details related to inward supplies|
|Advanced received||All details related to advanced received & adjustments made|
|Advances paid||All details related to advances paid & adjustments made|
Below are the records and accounts that any taxpayer is expected to maintain as well as follows:
Account Books & Records to be kept by any Agent:
- Authorization particulars received by the agent from every principal for supply or receipt of goods/ services on such principal’s behalf;
- Particulars including value, description & quantity of the goods/services supplied on the principal’s behalf;
- Particulars including value, description & quantity of the goods/services received on the principal’s behalf;
- Account details handed over to each principal as well as taxes paid on supply or receipt of goods/services effects on principal’s behalf
Account Books & Records to be kept by any Contractor:
- Name & address of individual on behalf of whom contract is carried out;
- Description, quality and value of the goods/services received for executing work as per the contract;
- Description, quality and value of the goods/services utilised for executing work as per the contract;
- Payment details with respect to every work contract executed and names/ address of all suppliers who have supplied these goods/services.
Account Books & Records to be kept by operator or owner of warehouse or Godown:
- Account books should be maintained for the time period of goods kept in the godown or warehouse;
- All details related to movement, receipt, dispatch & disposal of goods;
- Goods should be stored in a manner which would help in identification owner wise and item wise and should ensure smooth physical verification process anytime
Account Books & Records to be kept by Transporter:
- Any individual engaged in transporting business (goods) should maintain all records of the goods transported, supplied, delivered as well as stored.
Below are other critical points attached to Accounts & Records maintenance for GST:
Relevant Documents: It is essential for every taxpayer to keep & maintain documents such as supply bills, invoices, credit notes, delivery challans, receipt vouchers, debit notes, refund vouchers, payment vouchers & e-way bills
Area of Maintenance: Taxpayers are required to keep their account books & records at principal business place. If there are multiple business locations, it should be specified during GST registration.
Retention Period: Any registered taxpayer is allowed to retain the books & records till the expiry period which is six years from Annual Return filing.
Maintenance in Electronic Channels: All records kept across electronic channels should be authenticated via digital signature.
Rectification of incorrect entries: Incorrect entries in the records, accounts or documents should not be overwritten, effaced or erased. After attestation, correct entries will be recorded.