The Goods and Services Tax (GST) is a tax reform that aims to eliminate India’s major indirect taxes – VAT, Excise and Service Tax. The GST laws mandate that all registered persons who are under GST, must maintain accounts and record in a particular manner.
The record-keeping requirements are explained in the Section 35 of the GST Act. In addition to that, in April 2017 central government released the draft rules for GST records and accounts (draft record rules), which lists the additional GST record-keeping and accounting requirements.
Place of Business
The GST “place of business” includes the following:
1. A place from where the business is normally carried out. It could be godown, a warehouse or any place where taxable person stores the goods , receives or supplies services or goods or both, or
2. A place where the books of accounts are maintained or
3. A place where a person who pays tax is engaged in business through an agent or whatever name called.
Under the GST, certain documents are required to be maintained by all registered taxpayers at their place of business.
Documents to be Maintained
Under the GST, all the registered taxpayers are required to maintain the following records and accounts at their place of business.
The details of manufacture or production of goods;
The details of the inward and outward supply of services or goods or both
Stock of goods
The input tax credit availed;
The output tax payable and paid;
And any other particulars as may be agreed.
In case there is more than one place of business, then accounts relating to each of these places of business must be kept at that place. Records and accounts under the GST can be maintained in both electronic or the book format
Mandatory Document Maintenance Required
Transporters, operators or owners of godown, ware house or any other place which is used for the storage of goods that are required to maintain records of the consigner, the consignee and the other details of the goods transported / held by them, whether the person is registered or not.
Duration of Account Maintenance under GST?
It is mandatory for all the registered taxpayers to maintain the book of records and accounts for a period of 6 years from due date of the filing of the annual returns for the year. If the taxpayer is involved in an appeal of the revision or any other proceeding before any Revision Authority or Appellate Authority or the Appellate tribunal or court, then all the accounts and the books must be maintained for a period of one year after the final disposal of such an appeal or proceedings or revision or for six years ,whichever is later.