Records and Accounts Maintenance under GST

As per Section 35 of the CGST Act, 2017, any person who is registered under GST needs to maintain records and accounts at his principal place of business. Moreover, it is prescribed that any entry made in records of accounts shall not be overwritten or erased. Now, the question arises what records and accounts need to be maintained under GST by a taxpayer? So, in this blog, we have covered all the aspects related to records and accounts maintenance under GST. 

Who Should Maintain Records and Accounts under GST? 

Here is the list of persons who are required to maintain records and accounts under GST: 

1. The owner; 
2. The warehouse or godown operator; 
3. Transporter; 
4. Taxpayer whose aggregate turnover exceeds INR 2 Crores during any financial year; 

Records and Accounts Maintenance under GST 

As per Chapter VIII of the CGST Act, a registered person needs to maintain the following accounts and records under GST 

Records to be maintained under GST 

1. Production or manufacture of goods; 
2. Inward & outward supply of the goods and/or services; 
3. The stock of goods; 
4. Input tax credit availed; 
5. Output tax payable & paid; 
6. Other particulars as may be prescribed. 

Accounts to be maintained under GST 

1. Register of goods produced 
2. Purchase register 
3. Sales Register 
4. Stock Register 
5. Taxes payable and ITC availed 
6. Advance paid/received register 
7. Services supplied 
8. Electronic ledgers and records 

Retention Period of Records and Account Maintained Under GST 

As per Section 36 of the CGST Act 2017, every person registered under GST needs to retain and maintain records and accounts for a minimum of 72 months from the date of filing an annual return.  

In case a registered person is being scrutinized for an offense will hold the records and accounts for one year after the completion of the investigation. 

In case a registered person is involved in any other proceedings or has appealed for revision before an appellate authority or court, he/she needs to retain records and accounts for one year after completion of such proceedings.  

Consequences of Failure to Maintain Records and Accounts under GST 

If any notified taxable registered person fails to maintain records and accounts related to goods or/and services, he/she will face penal consequences. The proper officer or auditor will treat such unaccounted goods or/and services as if they were supplied by such notified taxpayer. Moreover, such an officer will determine the tax liability of such unaccounted goods or services or both. 

The notified taxpayer will have to pay the tax liability along with the penalty as prescribed within the stipulated time. And, as per Section 122(1) of the CGST Act, any taxpayer who fails 

1. To maintain or retain records or books of accounts; or 
2. Fails to furnish such documents; or 
3. Submits false information to a GST officer 

Is liable to pay a penalty of INR 10,000 or an amount equal to the tax evaded, whichever is higher. 

Conclusion 

A taxpayer should comply with all the provisions related to records and account maintenance under GST to avoid penal consequences. Moreover, He/she should retain the records and accounts under GST for not less than 72 months at the principal place of business from the date of furnishing the Annual GST Return.