Maintenance of Books of Accounts and Records under GST

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TaxClue Team
TaxClue Team
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

Who is required to maintain his books of accounts?

Every registered person is compulsorily required to keep and maintain various records at his Principal Place of Business or Additional Place of Business as mentioned in the certificate of registration.

Note: Where more than one business place is stated in the certificate of registration, the accounts relating to each place of business shall be kept at such place of business.

In the case of the supply of goods through auction.

In the case where goods are supplied through an auction like tea coffee rubber, the difficulties are being faced by the principal and auctioneer in maintaining books of accounts at each and every place of business.

Consequently, in such cases, the principal and auctioneer may declare the warehouses where such goods are stored as their additional place of business. The buyer is also mandatory to disclose such a warehouse as his additional place of business if he wants to store goods purchased through an auction in such a warehouse.

Further principal and auctioneer may maintain the books of accounts relating to additional place of business at their principal place of business. Also, principal and auctioneer shall intimate their proper officer in writing about the maintenance of books relating to additional place of business at their principal place of business

What books of accounts must be maintained under GST?

Every registered person shall have to keep and maintain true and correct accounts of—

  • production or manufacture of goods.
  • inward or outward supply of goods or services or both.
  • the stock of goods.
  • input tax credit availed.
  • output tax payable and paid.
  • Good or services imported.
  • Good or services exported.
  • A separate account of advances received, paid and adjustments made
  • Supplies attracting reverse charge.

Books of accounts which are only to be maintained by a supplier other than a supplier opting for composition levy.

A supplier is required to maintain the following records relating to the stock of goods and tax details. However, a supplier who has opted for composition scheme is not required to maintain such records.

  1. The stock of Goods- Accounts of stock in respect of goods received and supplied. And such an account shall contain particulars of opening balance, receipt, supply, goods lost, stolen, written off, etc. and balance of stock of raw materials, finished goods, scrap, and wastage.
  2. Details of Tax – Account containing the details of tax payable including reverse charge, tax collected and paid, input tax, input tax credit claimed together with a register of tax invoices, credit notes, debit notes, deliver challans issued or received during any tax period.

Books of accounts to be maintained by the agent.

Every agent shall maintain accounts depicting the-

  • Details of approval received by him from each principal to receive or supply goods or services on behalf of such principal separately
  • Details including description, value, and quantity (if applicable) of goods or services received or supplied on behalf of every principal
  • details of accounts given to every principal
  • tax paid on receipts or on the supply of goods or services effected on behalf of every principal.

Books of accounts to be maintained by the manufacturer.

Along with other records, every registered person manufacturing goods shall maintain monthly production register showing quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so made including the waste and by-products.

Books of accounts to be maintained by the service provider.

Along with other records, every registered person providing services has to maintain the accounts showing details of goods used in the provision of services, details of input services utilized and the services provided.

Books of accounts to be maintained by a person executing works contract.

Every registered person doing works contract shall keep separate books for works contract showing –

(a) the names and addresses of the persons on whose behalf the works contract are executed;

(b) description, value, and quantity (if applicable) of goods or services received or utilized for the execution of works contract.

(c) the details of payment received in respect of each work contract; and

(d) the names and addresses of suppliers from whom he received goods or services.

Books of accounts to be maintained by the owner or operator of godowns or warehouse and transporter.

Any person involved in the business of transporting goods shall have to maintain a register of goods moved, delivered and stored in transit by him along with the GSTIN of the consigner and consignee for each of his divisions.

Every owner or operator of a warehouse or godown shall have to maintain a register for the period for which particular goods remain in the warehouse, including the details relating to the movement of goods.


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