Every taxpayer registered under GST must maintain all records at his principal place of business.
Every registered person is required to keep and maintain all records at his principal place of business.
It is the responsibility of the following persons to maintain specified records-
Every registered person whose turnover during a financial year exceeds the prescribed limit (2 crore) will get his accounts audited by a chartered accountant or a cost accountant.
Every registered person must maintain records of:
Please read our article for a list of records to be maintained under GST.
In our article, we have listed the various accounts to be maintained that businesses need to keep under GST.
For example, under GST, a trader has to maintain the following a/cs (apart from accounts like purchase, sales, stock) –
In spite of initial transition challenges, GST will bring in clarity in many areas of business including accounting and bookkeeping.
While the number of accounts is more apparently under GST, once you go through the accounting entries you will find it is much easier for record keeping. One of the biggest advantages a trader will have is that he can set off his input tax on service with his output tax on the sale.
Read our discussions on the accounting treatment of various transactions under GST answering queries on how to record and pass entries for the inter-state sale of goods, how to record utilisation of input tax credit etc.
Every registered taxpayer will have 3 ledgers under GST which will be generated automatically at the time of registration and will be maintained electronically.
As per the GST Act, every registered taxable person must maintain the accounts books and records for at least 72 months (6 years). The period will be counted from the last date of filing of Annual Return for that year.
The last date of filing the Annual return is 31st December of the following year.
For the year 2017-2018, the due date of filing the annual return is 31.12.2018. The books & records of 2017-2018 must be maintained for 6 years, i.e., 31.12.2023
If the taxpayer is a part of any proceedings before any authority (First Appellate) or is under investigation then he must maintain the books for 1 year after the order of such proceedings/appeal has been passed.
If the taxpayer fails to maintain proper records in respect of goods/services, then the proper officer shall treat such unaccounted goods/services as if the taxpayer had supplied them. The officer will determine the tax liability on such unaccounted goods.
The taxable person will be required to pay the tax liability calculated along with penalty.