Maintenance of Accounts And Records Under GST
GST: Records and Accounts Maintenance

Maintenance of Accounts And Records Under GST
Every registered person under GST must maintain all records at his principal place of business as prescribed under Section 35 of the Central Goods and Service Tax Act, 2017 read with Rule 56 of the Central Goods and Service Tax Rule, 2017.

Who must maintain accounts and records under GST?

It is the responsibility of the following persons to maintain specified records-

The owner i.e. Manufactures, Service Supplier and Trader.
Operator of Warehouse or Godown or any other place used for storage of goods.
Every Transporter
Every registered person whose turnover during a financial year exceeds the prescribed limit i.e. Rs. 2 Crore will get his accounts audited by a Cost Accountant or a Chartered Accountant.

Every registered person must maintain records of-

  • Production or manufacture of goods
  • Inward and outward supply of goods or services or both
  • Stock of goods
  • Input tax credit availed
  • Output tax payable and paid and
  • Other particulars as may be prescribed

    As per Proviso to Sec. 35 (1) of the CGST Act, “The registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed”.

    In addition to above, every registered person shall keep and maintain a true and correct account of the goods or services imported or exported or of supplies attracting payment of tax on reverse charge along with the relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers and refund vouchers as per Rule 56 of the CGST Rule, 2017.

    List of Accounts and records to be maintained under GST.
  1. Register of Goods Produced
  2. Purchase Register
  3. Sales Register
  4. Stock Register
  5. Input Tax Credit Availed
  6. Output Tax Liability 
  7. Output Tax Paid
  8. Advance Paid/ Received Register
  9. Other Records Specified

    Records related to Tax paid/payable under GST:
    a. Record for Tax payable or paid

    Every registered person shall keep and maintain an account, containing the details of tax payable including tax payable under reverse charge, tax collected and paid, input tax, input tax credit claimed, together with a register of Tax Invoice, Credit Notes, Debit Notes, Delivery Challan issued or received during any tax period.

    b. Electronic Cash and Credit Ledger

    Every registered person will have 3 ledgers under GST which will be generated automatically at the time of registration and will be maintained electronically.

    Electronic Cash Ledger-This ledger will serve as an electronic wallet. The taxpayer will have to deposit money into his cash ledger (add money to the wallet). The money will be utilized to make the payment.
    Electronic Credit Ledger- The input tax credit on purchases will be reflected here under three categories i.e. IGST, CGST & SGST. The taxpayer will be able to utilize the balance shown in this account only for payment of tax (not for interest, penalty etc.)
    Electronic Liability Ledger: This ledger will show the total tax liability of a taxpayer after netting off for the particular month. This ledger will be auto-populated.
    As per Rule 56 (5) of CGST Rules, 2017, Every registered person shall keep particulars of-
    a. names and complete addresses of suppliers from whom he has received the goods or services chargeable to tax under the Act;

    b. names and complete addresses of the persons to whom he has supplied goods or services, where required under the provisions of this Chapter;

    c. the complete address of the premises where goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein.

    If any taxable goods are found to be stored at any place(s) other than those declared under sub-rule (5) without the cover of any valid documents, the proper officer shall determine the amount of tax payable on such goods as if such goods have been supplied by the registered person.

     Consequences of Not Maintaining Proper Records

    If the taxpayer fails to maintain proper records in respect of goods/services, then 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.

    Drafted by:
    CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director
    Certified CSR Professional., Certified GST Professional.
Maintenance of Accounts And Records Under GST
Maniraj Anantham 5 December, 2022
Share this post
Sign in to leave a comment