FCA Dinesh Kumar

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Section 42 and 43 of Model GST Law deal with maintenance and keeping of accounts and records, these are important section to know that what now Govt. wants from a business man with respect to book keeping.

This article will help you to clear your question w.r.t Accounts and Records under Model GST Law

What is RCM under GST?

Section 42-Accounts and other records Interpretation
(1) 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: Who- The every person who get himself registered under MGL,

What- True and Correct Account of

I. Production or manufacture of Goods

II. inward or outward supply of goods and/or services

III. stock of goods

IV. input tax credit availed

V. output tax payable and paid

VI. such other particulars as may be prescribed

Provided that 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 concerned Where- this records shall be kept at place of business

But if Registered Person (RP) has more than one place of business then accounts relates to each place of business shall be kept at same place of business only.

Example- A is registered under Delhi and having four place of business in Delhi itself. Then he will maintain accounts for all four such place at these place only.

The purpose of inclusion of such requirement if only better control by Govt.

Provided further that the registered person may keep and maintain such accounts and other particulars in the electronic form in the manner as may be prescribed. How- such Account and Records shall be maintained in Electronically only. It means records shall be made in computer only. Manual book keeping is not allowed.
(2) The [Commissioner/Chief Commissioner] may notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified It means that the above list of records are not exhaustive, the commissioner or Chief Commissioner may add some more records to be maintained.
(3) Where the [Commissioner/ Chief Commissioner] considers that any class of taxable persons is not in a position to keep and maintain accounts in accordance with the provisions of this section, he may, for reasons to be recorded in writing, permit such class of taxable persons to maintain accounts in such manner as may be prescribed This sub-section is added for those who may not keep records electronically , then they may approach to Commissioner or Chief Commissioner to permit them for to do so.
(4) Every registered taxable person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit to the proper officer a copy of the audited statement of accounts, the reconciliation statement under sub-section (2) of section 30 and such other documents in the form and manner as may be prescribed in this behalf Only keeping of Accounts is not enough, it should be get audited by Chartered or Cost Accountant. And submit Audit report at the time of filing of Annual Return by end of December next to closure of Financial Year under Section 30 of MGL.

The manner and other document to submit shall be prescribed

Section 43- Period of retention of accounts
(1) Every registered taxable person required to keep and maintain books of account or other records under sub-section (1) of section 42 shall retain them until the expiry of sixty months from the last date of filing of Annual Return for the year pertaining to such accounts and records How Long– the Records and Accounts as specified in section 42 shall be kept for the period of 60 month from the last date of filing of Annual Return i.e Sept of following year.

Limitation of 60 days is same as Service Tax and Central Excise i.r 5 Year

Provided that a taxable person, who is a party to an appeal or revision or any other proceeding before any Appellate Authority or Tribunal or Court, whether filed by him or by the department, shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceeding for a period of one year after final disposal of such appeal or revision or proceeding, or for the period specified under sub-section (1), whichever is later. However in case where any appeal/revision/ or any other proceeding made before appellate Authority /Tribunal of Court then the books of account and other records pertaining to the subject matter of such appeal or revision or proceeding shall be kept for a period of one year after final disposal of such appeal or revision or proceeding, or for the period specified under sub-section (1), whichever is later

 

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