DOCUMENTS, ACCOUNTS & RECORDS IN GST (PART-I)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 24-11-2017
Assessment in GST is mainly focused on self assessment by the taxpayers themselves. Every taxpayer is required to self-assess the taxes payable and furnish a return for each tax period i.e. the period for which return is required to be filed. The compliance verification is done by the department through scrutiny of returns, audit and/or investigation. Thus, the compliance verification is to be done through documentary checks rather than physical controls. This requires certain obligations to be cast on the taxpayer for keeping and maintaining accounts and records.
Statutory Provisions
The following provisions of the GST Act, 2017 are relevant for the 'Accounts and Records' under GST regime:
Section
Relating to
2(41)
Meaning of document
35
Accounts and other records
36
Period of retention of accounts
Rule
Relating to
56
Maintenance of acc
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the preparation of record or statement of transactions or the like, a statement and explanation of one's administration or conduct in money affairs, a statement or record of financial transactions or reckoning of money transaction, a written or printed statement of business dealing or debits and credits or certain class of them. For example, balance sheet, income statement (profit and loss account), cash flow statement etc.
'Books or books of accounts' means books in which business transactions are recorded, often consisting of journals, ledgers and various other records of accounts. They are normally held to be legal documents and should indicate the financial position of the business at any time. Every company including branch office or offices prepare and keep at its registered office, books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company and such books shall b
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he following calendar year. In India, business entities follow financial year as accounting year. The same is also mandated under the Companies Act, 2013 and Income Tax Act, 1961.
Accounts to be maintained
As per section 35(1) of the GST Act, 2017, every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration, a true and correct account of production or manufacture of goods, of inward or outward supply of goods and/or services, of stock of goods, of input tax credit availed, of output tax payable and paid, and such other particulars as may be prescribed in this behalf.
Accordingly, a true and correct account of the following activities/transactions shall be maintained by a taxable person:
● Production or manufacture of goods,
● Inward or outward supply of goods and/or services,
● Stock of goods,
● Input tax credit availed,
● Output tax payable and paid, and
● Such other
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paid and adjustments made thereto
(c) an account containing the details of tax payable, tax collected and paid, input tax, input tax credit claimed together with a register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period
(d) names and complete addresses of suppliers from whom goods or services chargeable to tax under the Act, have been received
(e) names and complete addresses of the persons to whom supplies have been made
(f) the complete addresses of the premises where the goods are stored including goods stored during transit along with the particulars of the stock stored therein
(g) monthly production accounts showing the quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof
(h) accounts showing the quantitative details of goods used in the provision of services, details of input services utilised and t
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