GST – GST FAQ 3rd Edition – December, 2018 – 13.2 – 13.2 Accounts and Records under GST Q 82. Whether every registered person is required to maintain records? Ans. Yes, every registered person is required to keep and maintain books of account at his principal place of business. 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 (Section 35 of the CGST Act, 2017). Furthermore, the transporters, warehouse keepers are required to maintain records of consigner, consignee or any relevant details even if they are not registered in GST. They need to enrol for the purpose. Q 83. What are the records that a registered person is mandatorily required to maintain under the GST Act? Ans. Every registered person should maintain a true and correct account of (a) production or manufacture of goods; (b) inward and outward supply of goods or services or both; (c) stock of goods;
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hall be kept at such places of business. (Section 35(1) of CGST Act). In case of supply of tea, coffee, rubber, etc. where the auctioneer claims ITC in respect of the supply made to him by the principal before or after the auction of such goods and the said goods are supplied only through auction, the principal and the auctioneer may maintain the books of accounts relating to the additional place(s) of business at their principal place of business instead of such additional place(s). Such principal or auctioneer shall intimate their jurisdictional proper officer in writing about the maintenance of books of accounts relating to additional place(s) of business at their principal place of business. (CBIC Circular No. 23/23/2017-GST dated 21.12.2017 and Circular No. 47/21/2018-GST dated 08.06.2018 ). Q 85. Can a registered person maintain the records in electronic form? Ans. Yes, the records may be maintained in electronic form and the records so maintained have to be authenticated by mean
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ional Authority or Appellate Tribunal or court, whether filed by him or by the Commissioner, or is under investigation for an offence under Chapter XIX, then, he 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 seventy two months as specified above, whichever is later. (Section 36 of the CGST Act, 2017) Q 87. With respect to stock of goods, which records are required to be maintained by the registered person? Ans. Every registered person, other than a person paying tax under section 10, shall maintain accounts of stock in respect of goods received and supplied by him, and such account shall contain particulars of opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and balance of stock including raw material, finished
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or received during any tax period. (Rule 56(4) of CGST Rules, 2017) Q 90. What are the particulars of suppliers that need to be maintained by the registered person under GST? Ans. Every registered person shall keep the 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 these rules; (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. (Rule 56(5) of CGST Rules, 2017) Q 91. What would be the consequences if the registered person fails to account for the goods and services in accordance with the provisions of the Act? Ans. Where the registered person fails to account for the goods or services or both in accordance with the provisions of section 35(1), the proper officer shall
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ing services has to maintain the accounts showing quantitative details of goods used in the provision of services, details of input services utilised and the services supplied. (Rule 56(13) of CGST Rules, 2017) Q 94. What are the accounts which a person supplying works contract need to maintain? Ans. Every registered person executing works contract has to keep separate accounts for works contract showing – (a) the 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 works contract; (d) the details of payment received in respect of each works contract; and (e) the names and addresses of suppliers from whom he received goods or services. (Rule 56(14) of the CGST Rules, 2017) Q 95. What are the accounts and records that an Agent n
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registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in the following manner. (Section 35 of the CGST Act, 2017) Enrolment, if not already registered in GST: Every such person, if not already registered under the Act, shall submit the details regarding his business electronically on the Common Portal in FORM GST ENR-01, either directly or through a Facilitation Centre notified by the Commissioner and, upon validation of the details furnished, a unique enrollment number shall be generated and communicated to the said person. The person enrolled as aforesaid in any other State or Union territory shall be deemed to be enrolled in the State or Union territory. Every person who is enrolled shall, where required, amend the details furnished in FORM GST ENR-01 electronically on the Common Portal either directly or through a Facilitation Centre notified by the Commissioner. Any person engaged in the business of transporting goods
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he records which a person having custody over the goods in the capacity of a carrier or clearing and forwarding agent need to maintain? Ans. Any person having custody over the goods in the capacity of a carrier or a clearing and forwarding agent for delivery or dispatch thereof to a recipient on behalf of any registered person shall maintain true and correct records in respect of such goods handled by him on behalf of the such registered person and shall produce the details thereof as and when required by the proper officer. Q 98. Is it necessary to show the records and accounts maintained under these rules to the proper officer? Ans. Yes. The records need to be shown on Demand. Every registered person shall, on demand, produce the books of accounts which he is required to maintain under any law in force. The registered person maintaining electronic records shall produce, on demand, the relevant records or documents, duly authenticated by him, in hard copy or in any electronically read
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s or documents for such purpose as may be specified therein. (Section 35(3) and 35(4) of CGST Act, 2017) Q 100. How are mistakes in records to be rectified? Ans. 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 thereafter the 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. (Rule 56(8) of the CGST Rules, 2017) Q 101. Is it necessary for the registered person to get their accounts audited from a professional? Ans. Yes, only cases where the turnover of the registered person exceeds ₹ 2 crores during a financial year. Every registered person whose turnover during a financial year exceeds 2 crores shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annua
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