The article explains about the requirements of CGST Act and corresponding CGST Rules with respect to Accounts and records to be maintained under Goods and Services Tax Law. Record keeping is an important aspect for every business and its an integral part of every legal framework. Records are important for furnishing information to Government in the form of Returns, Paying taxes, carrying out reconciliations etc. The article has been broadly classified under the following sections-
Page Contents
- 1. Mandatory Books to be maintained by a Registered Taxable Person
- 2. Additional accounts to be maintained by a registered taxable person
- 3. Accounts to be maintained by Registered Taxable person who provides Works Contract Services
- 4. Accounts to be maintained by every agent
- 5. Accounts to be maintained by owner or operator of warehouse
- 6. Records to be maintained by Transporter
- 7. Generation and Maintenance of Electronic Records
1. Mandatory Books to be maintained by a Registered Taxable Person
As per Sec 35 of the CGST Act 2017, the registered person is required to maintain the true, accurate and fair accounts and records off the following at his principal place of business-
(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
Rule 56(2) of CGST Rules 2017 explains that every registered person other than a person who is a composition dealer, will maintain the accounts related to stock of goods received and supplied by him which shall contain the following particulars-
a. Opening stock of Goods
b. Receipt of Goods
c. Supply of Goods
d. Goods Lost
e. Goods stolen
f. Goods destroyed
g. Goods written Off
h. Goods disposed off
i. Goods gifted
j. Goods given as free samples
k. Closing stock of Goods
The details must also include the bifurcation on account of raw materials, finished goods, scrap and wastage thereof
2. Additional accounts to be maintained by a registered taxable person
In addition to the requirements stated in Sec 35 of the CGST Act 2017, Rule 56 of the CGST Rules 2017 requires maintenance of following records also-
– Details of Goods or Services imported or exported
– supplies attracting payment of tax on reverse charge
– invoices, bills of supply, delivery challans
– credit notes, debit notes
– receipt vouchers, payment vouchers and refund vouchers
Following registers are also required to be maintained by the registered person other than the composition dealer
– Register of tax invoices
– Register of credit notes
– Register of Debit Notes
– Delivery Challan issued/ received
3. Accounts to be maintained by Registered Taxable person who provides Works Contract Services
As per Sec 2(119) of the CGST Act 2017, “works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract;
As per Rule 56(14) of CGST Rules 2017, following records are required to be maintained by every registered person executing works contract service-
a. The names and addresses of the persons on whose behalf the works contract is executed
b. Description, value, and quantity of goods and services received for the execution of works contract
c. Description, value, and quantity of goods and services utilised for the execution of works contract
d. Details of the payments received for each works contract
e. Names and addresses of the suppliers from whom the goods/ services have been received.
4. Accounts to be maintained by every agent
As per Sec 2(5) , “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another”
Every agent referred above has to maintain a particular set of accounts and records
a. Particulars of authorization received by him from each principal to receive or supply of goods or services on behalf of every principle
b. Description of goods, value and quantity of goods or services received on behalf of every principal to whom he is the agent
c. Description of goods, value and quantity of goods or services supplied to every principal to whom he is the agent
d. Details of accounts furnished to every principal
e. Records related to tax paid on receipts of the goods/ services on behalf of principal
f. Records/ Corresponding documents related to tax paid on supply of goods/ services on behalf on principal
5. Accounts to be maintained by owner or operator of warehouse
The owner or the operator of the warehouse is required to maintain
– Records of consigner of goods,
– Records of consignee of goods
– Records of movement of Goods which may includes
| Dispatch of Goods | Movement of goods |
| Receipt of Goods | Disposal of Goods |
Other relevant details as prescribed under CGST Rule 58 as mentioned
What- details regarding his business
How- electronically
Where- on the common portal
Form- in FORM GST ENR-01,
With the help of- either directly or through a Facilitation Centre notified by the Commissioner and,
(upon validation of the details furnished, a unique enrolment number shall be generated and communicated to the said person)
Period of maintenance of Registers and Records
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.
Precautions to be taken by the Operator/ Owner of the Warehouse regarding Storage of Goods
– Proper storage of the goods must be ensured
– Goods must be identifiable both item wise and owner wise
– Possibility of proper inspection must be ensured
– Physical verification can be done properly
6. Records to be maintained by Transporter
In terms of Sec 35 of the CGST Act 2017, the transporter of the goods and services is required to maintain the following records-
– Records of consigner of goods,
– Records of consignee of goods
– Records of movement of Goods which may includes
| Dispatch of Goods | Movement of goods |
| Receipt of Goods | Disposal of Goods |
In addition to above following details are also required to be maintained by the transporters in terms of Rule 58(4a)
– Records of goods transported
– Records of goods delivered
– Records of goods stored in transit
These all records will be accompanied by the Goods and Services Tax Registration Number of the registered consignor and consignee for each of his branches.
7. Generation and Maintenance of Electronic Records
Electronic records means the records which are not kept in hard documents rather are stored in computer software such as Electronic Cash Ledger, Electronic Credit Ledger etc.
Rule 57 of the CGST Rules 2017 requires that following factors must be taken into account for ensuring proper generation and maintenance of Electronic Records
– The assesse should maintain proper back up of all the electronic records
– The information should be restored at any time even at the time of destruction of such records, may be due to any natural calamity or any other accidents
– Proper authentication of the electronic records has to be ensured may be in electronic form or in Hard Copies.
– All the records must be password protected, coded for better control, however the assessee must arrange to provide the necessary details as and when required by the authorities.
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