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As per Sec 35 of the CGST Act 2017, every registered person is required to maintain Accounts and Records.

Sec 2(94) explains the meaning of registered person as ‘registered person’ means a person who is registered under section 25 but does not include a person having a Unique Identity Number”.

Sec 25 of the act explains that the registration is required by every person mentioned in Section 22 & 24 of the Act, hence the following class of persons is required to get registered under Goods and Services Tax and accordingly these registered persons have to maintain particular class of accounts and records under the provisions of Sec 35 & 36 of Central Goods and Services Tax Act, 2017.

a. Every Supplier making a Taxable Supply of Goods or Services

b. Every Transferee / Successor to whom the business carried on by taxable person has been transferred

c. Every Transferee to whom the business has been transferred through a scheme or an arrangement for amalgamation demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise

d. Persons making any Inter-State taxable supply

e. Casual Taxable Persons making taxable supply

As per Sec 2(20), “casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business

f. Persons who are required to pay tax under Reverse Charge

g. Person who are required to pay tax under sub-section (5) of section 9

“specific categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it”

h. Non-Resident Taxable persons making Taxable Supply

As per Sec 2(77),” non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India”

i. Persons who are required to deduct tax under section 51, whether or not separately registered under this Act

j. Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise

k. Input Service Distributor, whether or not separately registered under this Act

As per Sec 2(61), ““Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office”

l. Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52

m. Every Electronic Commerce Operator

As per Sec 2(45), ““electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce”

n. Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

o. Such other person or class of persons as may be notified by the Government on the recommendations of the Council

Consequences of not maintaining Accounts and Records?

In case the registered person fails to maintain proper accounts and records as mentioned above, the assessing officer shall determine the tax liability of the goods/ services not accounted for in the manner as these goods and services were supplied by the assesse and accordingly the consequential provisions of Sec 73 & 74 will be applied mutatis mutandis for determining the amount of tax.


Author Bio

CA Rubneet Anand B.Com, M.Com(Finance& Taxation), MBA(Finance & International Business- IMT Ghaziabad) carubneetanand@gmail.com Deputy Manager (Internal Audit & Indirect Taxation)-M/s SML Isuzu Ltd Facebook Page- Corporate Prism-Consultation in Accounting & Corporate Managemen View Full Profile

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July 2024