Accounts and Records to be maintained under GST

1. Requirements Regarding Maintenance of Accounts
2. Additional Requirements for an Agent
3. Additional Requirements for Work Contractor
4. Person operating a warehouse and transporter
5. Commissioner’s Power regarding Accounts Maintenance Rules
6. Retention of accounts and records

Requirements Regarding Maintenance of Accounts

1. Every registered person is required to maintain at his principal place of business, account of

(a) Production or manufacture of goods
(b) Inward and outward supply of goods or services or both
(c) Stock of goods
(d) Input tax credit availed
(e) Output tax payable and paid
(f) Import or Export of Goods/Services
(g) Supplies on which tax is payable on reverse charge
(h) Invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills.
(i) Such other particulars as may be prescribed

2. The account or records specified above shall be maintained separately for each activity including manufacturing, trading and provision of services, etc.
3. Every registered person, other than a person paying tax under composition scheme, shall 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.
4. Every registered person shall keep and maintain a separate account of advances received, paid and adjustments made thereto.
5. Every registered persons shall keep the particulars of –

(a) names and complete addresses of suppliers from whom he has received the goods or services;
(b) names and complete addresses of the persons to whom he has supplied the goods or services;
(c) 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.

6. 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.
7. Such accounts and records can be maintained in electronic manner.
8. Every registered person manufacturing goods shall maintain monthly production accounts, showing the 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.
9. 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.
10. 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 there after 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.

Also Read – Invoicing under GST

Additional Requirements for an Agent

Following additional information is also required to be maintained by an agent

(a) Particulars of authorization received by him from each principal to receive or supply goods or services on behalf of such principal separately;
(b) Particulars including description, value and quantity (wherever applicable) of goods or services received on behalf of every principal;
(c) Particulars including description, value and quantity (wherever applicable) of goods or services supplied on behalf of every principal;
(d) Details of accounts furnished to every principal; and
(e) Tax paid on receipts or on supply of goods or services effected on behalf of every principal.

Additional Requirements for Work Contractor

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

(a) Names and addresses of the persons on whose behalf the works contract is executed;
(b) Description, value and quantity (wherever applicable) of goods or services received for the execution of works contract;
(c) Description, value and quantity (wherever applicable) of goods or services utilized in the execution of each works contract;
(d) Details of payment received in respect of each works contract; and
(e) Names and addresses of suppliers from whom he has received goods or services.

Person operating a warehouse and transporter

Every person required to maintain records and accounts in accordance with the provisions of sub-section (2) of section 35, if not already registered under the Act, shall submit the details regarding his business electronically on the Common Portal in FORM GST ENR-01, a unique enrollment number shall be generated and communicated to the said person.

The person enrolled in any other State or Union territory shall be deemed to be enrolled in the State or Union territory.

Any person engaged in the business of transporting goods shall maintain records of goods transported, delivered and goods stored in transit by him along with GSTIN of the registered consignor and consignee for each of his branches.

Every owner or operator of a warehouse or godown shall maintain books of accounts with respect to the period for which particular goods remain in the warehouse, including the particulars relating to dispatch, movement, receipt, and disposal of such goods.

The owner or the operator of the godown shall store the goods in such manner that they can be identified item wise and owner wise and shall facilitate any physical verification or inspection by the proper officer on demand.

Commissioner’s Power regarding Accounts Maintenance Rules

Commissioner may notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified therein.

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.

Retention of accounts and records

Every person is required to retain such accounts and records with him until 6 years from the due date of furnishing annual return of the relevant year. Due date for filing annual return in 31st December of the next financial year. For eg. For the year 2017-18 the accounts are to be retained up to 31st December 2024.

A person who is 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 one year after final disposal of such appeal or revision or proceedings or investigation.