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 specified tax periods 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.
2. Section 35 of the CGST Act, 2017 and Chapter VIII of the CGST Rules, 2017 (hereinafter referred to as rules) provide that every registered person shall keep and maintain all records at his principal place of business. It also cast, responsibility on owner or operator of warehouse or godown or any other place used for storage of goods and on every transporter, irrespective of whether he is a registered person or not, to maintain specified records. The section also empowers the Commissioner to notify a class of taxable persons to maintain additional accounts or documents for specified purpose or to maintain accounts in other prescribed manner. It also provides that every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant.
3. Section 35 of the CGST Act, 2017 provides that 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—
a) production or manufacture of goods;
b) inward and outward supply of goods or services or both;
c) stock of goods;
d) input tax credit availed;
e) output tax payable and paid; and
f) such other particulars as may be prescribed.
In addition, the rules also provide that the registered person shall keep and maintain records of-
a) goods or services imported or exported; or
b) supplies attracting payment of tax on reverse charge
along with relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills.
4. In case, 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. A registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed.
5. Following accounts and records will have to be maintained by every registered person:
a) accounts of stock in respect of goods received and supplied; and such account shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and balance of stock including raw materials, finished goods, scrap and wastage thereof;
b) a separate account of advances received, 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 [not required for person paying tax under section 10];
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 the services supplied;
i) separate accounts for works contract showing –
6. The books of account shall be kept at the principal place of business and at every related place(s) of business mentioned in the certificate of registration and such books of account shall include any electronic form of data stored on any electronic devices. The data so stored shall be authenticated by way of digital signature. Unless proved otherwise, if any documents, registers, or any books of account belonging to a registered person are found at any premises other than those mentioned in the certificate of registration, they shall be presumed to be maintained by the said registered person. If any taxable goods are found to be stored at any place(s) other than those declared 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.
7. Attention is invited to Circular No. 23/23/2017-GST dated 21.12.2017 which provides relaxation from maintenance of books of accounts relating to additional place of business by a principal or an auctioneer for the purpose of auction of tea, coffee, rubber etc. subject to prescribed conditions.
8. 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 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. Further each volume of books of account maintained manually by the registered person shall be serially numbered.
9. Period for preservation of accounts:
10. Electronic Records: The following requirements have been prescribed for maintenance of records in electronic form.
11. Records to be maintained by owner or operator of godown or warehouse and transporters:
The transporters, owners or operators of godowns, if not already registered under the GST Act(s), shall submit the details regarding their business electronically on the Common Portal in FORM GST ENR-01. A unique enrolment number shall be generated and communicated to them. A person enrolled in any other State or Union territory shall be deemed to be enrolled in the State or Union Territory.
12. Every person engaged in the business of transporting goods shall maintain records of goods transported, delivered and goods stored in transit by him and for each of his branches. Every owner or operator of a warehouse or godown shall maintain books of accounts, with respect to the period for which particular goods remain in the warehouse, including the particulars relating to dispatch, movement, receipt, and disposal of such goods. The goods shall be stored in such manner that they can be identified item wise and owner wise and shall facilitate any physical verification or inspection, if required at any time.
|1||Registration under GST Law|
|2||Cancellation of Registration in GST|
|3||The Meaning and Scope of Supply|
|4||Composite Supply and Mixed Supply|
|5||Time of Supply in GST|
|6||GST on advances received for future supplies|
|7||Concept of Aggregate Turnover in GST|
|8||Non-resident taxable person in GST|
|9||Casual taxable person in GST|
|10||Input Service Distributor in GST|
|11||Composition Levy Scheme in GST|
|12||Reverse Charge Mechanism in GST|
|13||Tax Invoice and other such instruments in GST|
|14||Accounts and Records in GST|
|15||Credit Note in GST|
|16||Debit Note in GST|
|17||Electronic Cash/Credit Ledgers and Liability Register in GST|
|18||Electronic Way Bill in GST|
|19||Input Tax Credit Mechanism in GST|
|20||Transition Provisions under GST|
|21||Integrated Goods and Services Tax Act|
|22||Compensation cess in GST|
|23||Imports in GST Regime|
|24||Zero Rating of Supplies in GST|
|25||Deemed Exports in GST|
|26||Pure Agent Concept in GST|
|27||Job Work under GST|
|28||Works Contract in GST|
|29||Valuation in GST|
|30||Margin Scheme in GST|
|31||Provisional Assessment in GST|
|32||Returns in GST|
|33||Statement of Outward Supplies (GSTR-1) in GST|
|34||Refunds under GST|
|35||Refund of Integrated Tax paid on account of zero rated supplies|
|36||Refund of unutilised Input Tax Credit (ITC)|
|37||Advance Ruling Mechanism in GST|
|38||Goods Transport Agency in GST|
|39||GST on Charitable and Religious Trusts|
|40||GST on Education Services|
|41||GST on Co-operative Housing Societies|
|42||Online Information Data Base Access and Retrieval (OIDAR) Services in GST|
|44||National Anti-Profiteering Authority in GST|
|45||Benefits of Goods and Services Tax (GST)|
|46||Special Audit in GST|
|47||TDS Mechanism under GST|
|48||TCS Mechanism under GST|
|49||Inspection, Search, Seizure and Arrest|
|50||Appeals and Review Mechanism under GST|
|51||Recovery of Tax|