Assessment in GST is mainly focused on self-assessment by the taxpayers themselves. Every taxpayer is required to self-assess the taxes payable and furnish a return for each tax period i.e. the period for which return is required to be filed. The compliance verification is done by the department through scrutiny of returns,�audit and/or investigation. Thus the compliance verification is to be done through documentary checks rather than physical controls. This requires certain obligations to be cast on the taxpayer for keeping and maintaining accounts and records.
Key points that are significant from the perspective of maintenance of accounts and records are:
1. Section 35 of the CGST Act and “Accounts and Records” Rules (hereinafter referred to as rules) provide that every registered person shall keep and maintain all records at his principal place of business. It has cast the responsibility on the owner or operator of warehouse or godown or any other place used for storage of goods and on every transporter to maintain specified records.
The section also empowers the Commissioner to notify a class of taxable persons to maintain additional accounts or documents for specified purpose or to maintain accounts in other prescribed manner.
It also provides that 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.
2. Every registered person is required to maintain true and correct account of following:�(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
(g) goods or services imported or exported or
(h) supplies attracting payment of tax on reverse charge along with the relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills
The aforementioned list is on a macro level and what needs to be stored on ground level as part of the list is given below:
(a) accounts of stock in respect of goods received and supplied; and such account shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and balance of stock including raw materials, finished goods, scrap and wastage thereof
(b) a separate account of advances received, paid and adjustments made thereto
(c) an account containing the details of tax payable, tax collected and paid, input tax, input tax credit�claimed together with a register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period
(d) names and complete addresses of suppliers from whom goods or services chargeable to tax under the Act, have been received
(e) names and complete addresses of the persons to whom supplies have been made
(f) the complete addresses of the premises where the goods are stored including goods stored during transit along with the particulars of the stock stored therein
(g) monthly production accounts showing the quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof
(h) accounts showing the quantitative details of goods used in the provision of services, details of input services utilised and the services supplied
(i) separate accounts for works contract showing:�• the names and addresses of the persons on whose behalf the works contract is executed�• description, value and quantity (wherever applicable) of goods or services received for the execution of works contract�• description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract�• the details of payment received in respect of each works contract and�• the names and addresses of suppliers from whom he has received goods or services
3. In case 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. If records can be maintained electronically and access to such records is at each place of business, no requirement to maintain hard copy records at each place of business.
4. If records are maintained electronically, following requirements have been prescribed:
(a) data so stored shall be authenticated by way of digital signature
(b) proper back-up of records
(c) produce, on demand, the relevant records or documents, duly authenticated, in hard copy or in any electronically readable format
5. Any entry in registers, accounts and documents shall not be erased, effaced or overwritten and all incorrect entries, other than those of clerical nature, shall be scored out under attestation and thereafter the correct entry shall be recorded and where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained.
Further each volume of books of account maintained manually by the registered person shall be serially numbered
6. Period for preservation of accounts: All accounts maintained together with all invoices, bills of supply, credit and debit notes, and delivery challans relating to stocks, deliveries, inward supply and outward supply shall be preserved for 6 years from the due date of furnishing of annual return for the year pertaining to such accounts and records.
7. Records to be maintained by owner or operator of godown or warehouse and transporters: The transporters, owners or operators of godowns, if not already registered under the GST Act(s), shall submit the details regarding their business electronically on the Common Portal in FORM GST ENR-01. A unique enrolment number shall be generated and communicated to them. A person in any other State or Union territory shall be deemed to be enrolled in the State or Union Territory.
by Rashmi Jain thru FB
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