What are the ACCOUNTS & RECORDS that should be maintained by a REGISTERED PERSON?
Every registered person is required to maintain a true & correct account of the following at each place of business registered under GST :
- Production or manufacture of goods.
- Inward & outward supply of goods or services or both.
- Stock of goods
- Input tax credit availed.
- Output tax payable & paid.
- Any other necessary particulars.
- Goods or services imported or exported OR Supplies attracting payment of tax on reverse charge along with the relevant documents.
- A separate record of advances paid, received & adjustments made.
Every registered person other than the person who is paying tax under composition scheme, shall maintain the accounts of stock in respect of goods received & goods supplied by him, & such accounts shall contain the following particulars:
- Opening balance
- Goods stolen, lost, destroyed
- Written off or disposal by way of gifts or free sample
- Balance of stock including raw materials, finished goods, scrap & wastage.
- A separate record of tax payable, tax collected & paid, Input tax, Input tax credit claimed along with a register of tax invoices, credit notes, debit notes, delivery challans issued or received.
Note: any entry in registers, accounts & documents shall not be erased, erasing the marks, overwritten. All the incorrect entries, which are clerical mistakes shall be corrected by attestation & then the correct entry shall be recorded.
What are the PARTICULARS that should be maintained for SUPPLIERS?
Every registered person shall maintain the particulars,
- Of the names & complete addresses of suppliers from whom we have received goods or services chargeable to tax.
- Of the names & complete addresses of persons to whom we have supplied the goods or services.
- Complete address of the premises where the goods are stored, including the record of the stocks stored.
Where should the BOOKS OF ACCOUNTS BE KEPT BY A REGISTERED PERSON?
Every registered person shall keep the books of accounts including books of accounts of additional place of business mentioned in the certificate of registration at the principal place of business (Head office). Such books of accounts shall also be maintained in electronic form stored in a secured electronic device.
Note: a log of every entry edited or deleted in the electronic form shall be maintained.
IF Any documents, register, or books of accounts belonging to registered person is found in the place other than that is mentioned in the certificate of registration shall be presumed that it belongs to the registered person only, unless another can prove it is not.
What are the RECORDS that should be maintained by the person WORKING AS AN AGENT?
Anyone working as an agent should maintain the following:
- Particulars of authentication received by him from each principal to receive or supply goods or services on behalf of such principal.
- Particulars including description, value & quantity of all the goods & services received or supplied on behalf of every principal.
- Details of accounts are furnished to every principal.
- Tax paid on receipts or on supply of goods & services on behalf of principals.
What are the RECORDS that should be maintained by the person TAKING WORKS CONTRACT?
Anyone who is taking works contract should maintain the following:
- Names & Addresses of the persons on whose behalf the works contract is executed.
- Description, value, and quantity of goods or services utilized & received for the works contract.
- Details of payment received in respect of each works contract.
- The names and addresses of suppliers from whom we received goods or services.
Can the accounts & records maintain in ELECTRONIC FORM?
Accounts & records can be maintained in electronic form & the record so maintained shall be authenticated by means of a digital signature.
What is a compulsory audit? Who should conduct a compulsory audit?
Every registered person whose turnover during the financial year exceeds the prescribed limit shall get his books of account audited by a Chartered accountant or Cost accountant.
Every person whose aggregate turnover during the financial year exceeds 5 crore rupees shall get his accounts audited & he shall furnish a copy of audited annual accounts & a reconciliation statement, duly certified, in FORM GSTR- 9C Electronically through the common portal either directly or indirectly or through a facilitation center notified by the commissioner.
NOTE: Any department of the central or state government or local authority which is to be audited by the Comptroller & auditor general (CAG) need not get their books of accounts audited by a CA/CMA.
What is the PERIOD OF RETENTION OF ACCOUNTS WITH THE REGISTERED PERSON?
Every registered taxable person must maintain the books of accounts & records for at least 6 years from the due date of furnishing of annual return for the year pertaining to such accounts & records. The period will be counted from the last date of filing of annual returns for that year.
The last date of filing the annual return is 31st December of the following year.