GST- Accounts and Records

Under section 35 of CGST Act, Accounts and other records

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 the following: –

• Production or manufacture of goods;
• Inward and outward supply of goods or services or both;
• Stock of goods;
• Input tax credit availed;
• Output tax payable and paid; and
• Such other particulars as may be prescribed

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:

Registered person may keep and maintain such accounts and other particulars in the electronic form.

The Commissioner may notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified therein.

In case the Commissioner considers that any class of taxable person 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.

 Every owner or operator of warehouse or go down or any other place used for storage of goods and every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.

 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 Accounts and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44.

 Where the registered person fails to account for the goods or services or both in accordance with the provisions of sub-section (1), the proper officer shall determine the amount of tax payable on the goods or services or both that are not accounted for, as if such goods or services or both had been supplied by such person for determination of such tax.

Rule 56 of the CGST Rules, 2017 provide guidelines for Maintenance of Accounts by a registered person

Rule 57 of the CGST Rules, 2017 provide guidelines for Generation and Maintenance of electronic records

Rule 58 of the CGST Rules, 2017 provide guidelines for Records to be maintained by owner or operator of go down or warehouse and Transporters

Period of Retention of Accounts

Every assessee shall retain the books of accounts and other records until the expiry of 72 months (6 years) from the due date for filing of Annual Return for the year pertaining to such accounts and records.