Some important questions regarding Accounts and Records Under GST

Q 1. Where should we maintain the Records?

Section 35 of the CGST Act and “Accounts and Records”

 Every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration.

Provided that 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:

Provided further that the registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed.

Where the Commissioner considers that any class of taxable person 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.

Q 2. What Records should be maintained?

(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; and

(f) such other particulars as may be prescribed:

In addition, the rules also provide that the registered person shall keep and maintain records o

fa) goods or services imported or exported; or

b) supplies attracting payment of tax on reverse charge

along with relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills.

Q 3. Who is responsible for maintain the records and account?

1. The Owner
2. Operator of warehouse or godown or any other place for storage of goods.
3. Every transporter

Irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.

where the registered person fails to account for the goods or services or both in accordance with the provisions of sub-section (1), the proper officer shall determine the amount of tax payable on the goods or services or both that are not accounted for, as if such goods or services or both had been supplied by such person and the provisions of section 73 or section 74, as the case may be, shall, mutatis mutandis, apply for determination of such tax.

Q 4. Period of retention of accounts. –

Every registered person required to keep and maintain books of account or other records in accordance with the provisions of sub-section (1) of section 35 shall retain them until the expiry of seventy-two months from the due date of furnishing of annual return for the year pertaining to such accounts and records:

Provided that a registered person, who is a 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, or for the period specified above, whichever is later.

Few Examples

For more clarity on the maintenance of the records, the below section will explain the need for specific sectors:

Manufacturers

• The quantitative details of raw materials or services used
• Quantitative details regarding goods manufactured during the specific period
• Quantitative details related to the by-products and waste generated during the specific period of time.

Warehouse

Books of accounts in reference to a period for which the taxpayer recorded the details particular goods. Any record that relates to:

• Dispatching movement
• Receipt
• Disposal of such goods

Transporters

Transporters must maintain records of goods transported, delivered and stored in transit including GSTIN of the registered consignee, wherever applicable. In addition to the above, transporters would also require e-way bill registration for carrying on the business of transporters.

Clearing and Forwarding Agents

In addition to the book of accounts, all clearing and forwarding agents must maintain all the details of delivery/dispatch of goods and record of goods handled.

Service Providers

All service providers should maintain the details of goods used for providing services, input services used during the period and services provided during the tax period.

In the case of workforce providers, the following details must also be maintained:

• Names and addresses of persons contracted as workers, description, value, and quantity of goods and services received for the execution of work
• Name and address of the suppliers and details of payment received in respect of each contract.

Agencies

Agencies should maintain the below following details under GST:

• Particulars of authorization received by him from each principal
• Particulars including description, value, and quantity of goods and services received and supplied on behalf of every principal.
• Details of accounts furnished to every principal.
• Tax paid on receipts or the supply of goods or services effected on behalf of every principal.

Agents, Brokers, Real Estate Brokers and Stock Brokers

The word Agent means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another. All agents or brokers, including real estate agents and brokers, should maintain the following additional records:

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

Works Contract

• The names and addresses of the persons on whose behalf the works contract is executed;
• Description, value and quantity (wherever applicable) of goods or services received for the execution of works contract;
• Description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract;
• Details of payment received in respect of each work contract; and
• The names and addresses of suppliers from whom he received goods or services.