What are the Accounts and other Records you should Maintain under GST
Accounts and records are the primary source of data for any organization’s financial reporting. Every law of Direct and Indirect Tax in our country also mandates that information in a prescribed manner has to be captured and preserved for a certain period of time. These accounts and records form the basis for returns filed by tax payers under each law.
Current regime
In the current indirect tax regime, every tax law mandates certain accounts and records of transactions to be maintained for a specific period of time, apart from the regular books of accounts.
Under Excise, the general records to be maintained are the RG-1 register (Daily stock account of excisable goods), Form IV register (Register of receipt or issue of raw material), invoice book and job work register
Under Service Tax, the suggested records include the bill register, receipt register, debit/credit notes register, CENVAT credit register, etc
Under VAT, the records to be maintained include purchase records, sales records, stock records, VAT account containing details of input and output tax, works contract account, etc
These records are required to be retained for at least 5 years from the end of the financial year in which they were effected.
GST regime
Under GST, every registered taxable person is required to maintain correct accounts of the following details at the principal place of business specified in the registration certificate: –
Accounts and Records to be maintained by Registered Persons | Manufacturer | Trader | Service Provider |
---|---|---|---|
Inward and outward supply of goods and/or services | ✔ | ✔ | ✔ |
Imports and exports | ✔ | ✔ | ✔ |
Supplies on which tax is paid on reverse charge | ✔ | ✔ | ✔ |
Separate account of advances received, paid and adjustments | ✔ | ✔ | ✔ |
Names and complete addresses of suppliers from whom taxable goods or services are received | ✔ | ✔ | ✔ |
Names and complete addresses of persons to whom goods or services are supplied | ✔ | ✔ | ✔ |
Input tax and input credit availed* | ✔ | ✔ | ✔ |
Tax payable (including tax payable on reverse charge), collected and paid * | ✔ | ✔ | ✔ |
Complete addresses of the premises where goods are stored, including premises where goods are stored during transit, along with details of the goods stored | ✔ | ✔ | × |
Stock in respect of goods received and supplied, containing details of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed as gift or free samples and balance of stock, including raw materials, finished goods, scrap and wastage * | ✔ | ✔ | × |
Monthly production accounts showing quantity of raw materials or services used in manufacture and quantity of goods manufactured, including waste and by products | ✔ | × | × |
Quantity of goods used to provide services, details of input services utilised and services supplied | × | × | ✔ |
* These accounts and records are not required to be maintained by persons paying tax under the composition scheme.
Supporting documents to be kept by registered persons |
---|
Tax invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers and refund vouchers |
Manner in which accounts and records should be maintained |
---|
If more than one place of business is specified in the registration certificate, accounts relating to each place of business must be kept at the respective places. |
Accounts and records should be maintained separately for each activity, such as manufacturing, trading, provision of service |
Each volume of books of accounts maintained manually should be serially numbered. |
Any entry in registers, accounts and documents should not be erased or overwritten and incorrect entries (other than clerical errors) should be scored out under attestation and later, the correct entry should be recorded. Where the registers and other documents are maintained electronically, a log of every entry edited or deleted should be maintained. |
If accounts are maintained in electronic form, –> The records should be authenticated by a digital signature –> Backup of records should be available such that even if they are destroyed due to accidents or natural causes, they can be restored within a reasonable period of time –> The records or documents should be produced on demand, authenticated by the person, in hard copy or in an electronically readable format. The person should also provide on demand, the details of the files, passwords of the files and explanation for codes used (where necessary) for access to the files, along with a sample copy in print form of the information stored in the files. |
How long should accounts and records be retained?
Every registered person is required to retain accounts and records for 6 years(72 months) from the due date of filing of annual return for the year to which the accounts and records pertain.
For example: For accounts and records pertaining to Financial Year ’17-’18, annual return must be filed by 31st December ’18. These accounts and records must be retained till 31st December ’24.
Accounts and records to be maintained by specific persons
In addition to maintaining the accounts specified above, the following persons should maintain additional records specified below:
Persons whose turnover during the financial year exceeds Rs. 2 crores
A person whose turnover during the financial year exceeds Rs. 2 crores is required to,
- Get the accounts audited by a Chartered Accountant or Cost Accountant and
- Submit a copy of the audited annual accounts and a reconciliation statement in Form GSTR- 9C while filing the annual return in Form GSTR-9.
Agents
Persons operating as agents should maintain accounts showing:
a. Details of authorisation received by him from each Principal to receive or supply goods or services on behalf of the Principal
b. Description, value and quantity (wherever applicable) of goods or services received on behalf of every Principal
c. Description, value and quantity (wherever applicable) of goods or services supplied on behalf of every Principal
d. Details of accounts furnished to every Principal
e. Tax paid on receipt or supply of goods or services made on behalf of every Principal
Works contractors
A registered person executing a works contract should keep separate accounts for works contract showing:
- a. Names and addresses of persons on whose behalf the works contract is executed
- b. Description, value and quantity (wherever applicable) of goods or services received for execution of works contract
- c. Description, value and quantity (wherever applicable) of goods or services utilized in execution of works contract
- d. Details of payment received in respect of each works contract.
- e. Names and addresses of suppliers from whom he has received goods or services
Persons owning or operating a warehouse or godown
An owner or operator of a warehouse or godown or any other place used for storage of goods, irrespective of whether he is registered or not, is required to maintain records of the consignor, consignee and particulars relating to dispatch, movement, receipt and disposal of the goods.
Transporters
A goods transportation agency, whether registered or unregistered, should maintain records of the goods transported, delivered and stored in transit, along with the GSTIN of the registered consigner and consignee for each of its branches
Carrier or clearing and forwarding agents
A person operating as a carrier or clearing and forwarding agent for delivery or dispatch of goods on behalf of a registered person should maintain records of goods handled on behalf of the registered person.
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Im from Karnataka .
I have a factory where i do 90% jobwork and 10% of other works such as turning/welding/fabrication work.My turover is less than 2 cr. I have registered under GST and got my certificate.
Pls suggest on how to go further with GST….
Hi Sir, I am planning to open a provision and general store next two weeks, I will get my rental agreement shortly n will be applying for Trade license n other statutory licenses too shortly. how do i register for gst.
Secondly, does tally have a complete system- pos software linked to material mgmt and accounting,audit etc. i would be interested instead of handling multiple softwares for various things.
apprecitiate your reply n guidance in advance.
Thank you!
Hi Sir, I am planning to open a provision and general store next two weeks, I will get my rental agreement shortly n will be applying for Trade license n other statutory licenses too shortly. how do i register for gst.
Secondly, does tally have a complete system- pos software linked to material mgmt and accounting,audit etc. i would be interested instead of handling multiple softwares for various things.
apprecitiate your reply n guidance in advance.
Thank you!
9931175218
We are Traders in Textiles. Our Goods come under a particular Trade Name used by Supplier in Bulk Quantity then we sell it under different Trade Name in Small Quantity. Do we have to use the same HSN for our Trade Name as used by the supplier?
Gst K baad manual accounts maintain Karne ki Jarurat h ki nahi bahi khata register copy rakhna h ki nahi. Ya Sab online Hi ho Jaye GA.
You can maintain manual registers or electronic registers. It is your choice.
Hey,
I am a freelancer exporting services to international clients. However, I do not have any business registered in my name. Now as GST will mandatorily apply in my case (which wasn’t so, earlier), can I register for GST without having a business? Or do I need to register my business first?
Also, let’s say I apply for registration of a sole proprietorship firm. In that case, I need to give my GST details (service tax earlier) to register, which I don’t have.
So, how to avoid this paradox?
Please help.
Thanks a lot in advance!
I HV an additional place of business which is shown as sales office and all business activities, from keeping stock to selling ,are done from that place. Should I mention both addresses, ie,Principal & additional place in my sale invoice. Additional place is mentioned in the GST migration
Which of my addresses is mentioned by my suppliers in their tax invoice, keeping in mind, all the activities are supposed to be done at additional place and which is also place of receiving interstate supply
from other states.
Pl. Help
In invoice, the principal or additional place of business can be mentioned, whichever is the place of billing.
If I require GST no. Of my customers and suppliers how I search it? Any link or website
We suggest you to refer our blog on this Verify GSTIN
I missed to add my CST Registration in GST. Now I got the provisional certificate also.
How can I add it now.
Kindly reply
Dear Sir,
My question is; under GST regime , the serial number shall be continuing in the same serial for B2B and B2C ? or Can we raise the invoices in the separate serial ?
Invoices can be made manually from the plant and then Back office can upload returns? Is it possible.
Thanks in anticipation of Reply.
what will be the invoice formet
We suggest you to refer our blog on this http://blogs.tallysolutions.com/gst-invoicing/
[…] What are the Accounts and other Records you should Maintain under GST […]
I think retention period is 6 years (72 months )
If an item is come under gst and a seller charged get from buyer but the goods is expenses nature for buyer then how the buyer account for the entry
Freight & Cartage charges is Tax able under GST
We suggest you to refer our blog on this http://blogs.tallysolutions.com/goods-and-services-valuation-gst/
gst training
How can join the gst
Good
It is a very good trial and carry on.
whats about that firm … own manufacturer of tax free items and also trading other taxable products ….i want to know wich type effect on that firm account maintaining…
Is it mandatory to maintain RG1 registers in GST?
NO
Good…
Thanks for the same….
Very Good
i aggree and GST is good
Very Nice Post….
good
I want to be a tax return preparer. What I have to do ? Know I am from Karnataka
We suggest you to refer our blog http://blogs.tallysolutions.com/gst-tax-return-preparer/
Good article, but most of things are already there at the ground level i.e. Professional CAs and Cost Accountants are well aware/// with a Sales n Distribution point of view ,Small time retailers and Wholesale Distributors have many other pain points, like, what will be the treatment of Opening Inventory as on 1st July 17 ( Starting point of GST),,, etc… Further, Suggest tally to find ways to develop better connect with Small time to Middle level Bizmen i.e. winning GTM strategy they need… I believe Tally will have to play bigger role nationally during Great GST regime….
Sir each goods minimum balance bank a/c in trading
himachal pradesh is excise exemption area .pls tell me after applicable of gst which portion refund by the govt
I want to be a tax return prepare.
Who can file annual return.acvountant or auditor..in this gst regime
Return can be filed by the dealer or by a GST practitioner on behalf of the dealer.
I want to be a tax return preparer. What I have to do ? I am from Andhra pradesh
Very knowledgeable & keep it up sir.
Good knowledge Sir thank u
How many types of return have to file for the trading firm
We suggest you to refer our blog http://blogs.tallysolutions.com/types-of-gst-returns/
37 returns have to be filed in a year 3 every month and 1 annually
What is gst this when start? & pls send full details
We suggest you to refer our blog http://blogs.tallysolutions.com/what-is-gst-how-does-it-work/
Good updation
Very Very helpful & useful to me as a tax consultant.
Is it a ware house maintained by Supplier(CFA) or the Distributors who received goods from his any of the supplier?
Any person who owns or operates a warehouse or godown.
till now we are maintaining Excise records manually, so In GST also can we maintain GST records manually or need to maintain in computer
It is recommended to maintain accounts and records in electronic form but you have an option to maintain manual records also.
what are the records to be maintained by composite dealers ?
i read in some blogs that detailed records is not to be maintained by them so can you mention the records
whether it can be maintained manually ?
As given in the table in our blog, accounts of input tax, tax payable and stock of goods are not required to be maintained by composition tax payers. All the remaining accounts are to be maintained. Accounts can be maintained manually.
Good
We are manufacturer,now we are submitted Excise return {er1} monthly.
After gst what are we doing.
Telling about stock book & credit taken and utilization.
Who is file GST return? Some bony told to me who are eligible the return exam that person only eligible for GST filling. This is true or false
Every registered taxable person can and should file GST return. They have an option to appoint a GST practitioner to file the returns on their behalf. We suggest you to refer our blog http://blogs.tallysolutions.com/gst-practitioner/
hope package help us in our field
Good , more explanation required for knowledge
Very very important information..
Thanks for the same….
also tell some thing about GST Returns…… It formats, How to Fill, Necessary contains etc.
Regards,
Nilesh Sonawane
Nashik.
We suggest you to refer our blogs http://blogs.tallysolutions.com/types-of-gst-returns/ and http://blogs.tallysolutions.com/how-to-file-gst-returns/
how to claim input tax credit balance amount in vat tax under gst
We suggest you to refer our blog http://blogs.tallysolutions.com/gst-transition-registered-businesses/
i have listen that the firm whose turnover exceeds 20 lakhs per month are only eligible for gst? is it true or not? Kindly explain..
We suggest you to refer our blog http://blogs.tallysolutions.com/registered-dealer-transition-to-gst/
When a material is rejected at the supply place and the same is to be returned to the sender, which transaction is to be done and its impact on senders and receiver’s books of accounts
Very knowledgeable
Who can file annual return.acvountant or auditor..in this gst regime
Annual return must be filed by the taxable person. The person can authorise a Tax return preparer to file the return on his behalf.
Sir,
enrolment for Tax Return preparer (GSTRP) when it will begin ??????/
This has not been announced yet
For small Traders Monthly returns are not justified, Returns should be periodicaly and Valume of Tax Liabilty
i.e. prevesouly As per VAT returns
Dealers whose turnover is less than Rs. 50 Lakhs have an option to register as composition tax payers. We suggest you to refer our blog on this http://blogs.tallysolutions.com/gst-composition-levy-explained/
Good