Accounts to be Maintained Under GST
Introduction: Since inception GST is been prone to changes and therefore it is important to understand that, how accounts are to be maintained under GST, where such books of accounts are to be maintained, what will be duration for which accounts are to be maintained. This are some of the question that are needed to be resolved, in this article we will cover all the provisions relating to maintenance of books of accounts under GST.
Who is required to maintain his books of accounts and at which place?
Every registered person will be required to keep and maintain, his books of accounts at his principal place of business including books of account relating to additional place of business. If in GST registration certificate more than one place is specified than accounts relating to each place of business shall be kept at respective place of business.
Which are the records that assessee will be required to maintain?
Registered person is required to maintain a true and correct account of:
What are the documents that are required to be maintained by agent, where he is supplying goods on behalf of principle?
Every agent will be required to maintain accounts following accounts:
(a) Particulars of authorisation received by him from each principal to receive/supply goods/services on behalf of such principal
(b) Records relating to particulars including description, value and quantity of goods or services received on behalf of every principal;
(c) Records including description, value and quantity of goods or services supplied on behalf of every principal;
(d) Details of accounts furnished to principal; and
(e) Tax paid on receipts/on supply of goods or services effected on behalf of every principal.
For how much time books of accounts are required to be retained by the assessee?
It has been specified that Every registered person required to keep and maintain books of account or other records for 72 months from the due date of furnishing of annual return for the year pertaining to such accounts and records.
Illustration: Mr. R was registered under GST and therefore, he was liable to maintain books of accounts. For financial year 2020-21 due date of furnishing Annual Return is 31st December, 2021. Till how much time he will be required to retained such books of accounts pertaining to that financial year?
It has been provided by the law that every registered person is required to maintain books of accounts and other records till 72 months from due date of furnishing Annual Return. In the above case due date for furnishing annual return is 31st December, 2021; Therefore, assessee will be liable to maintain the books of accounts till 31st December 2027. It is very important to know that counting of 72 months will begin from due date of furnishing the annual return and not from the date of furnishing said return.
What if such appeal\revision is pending before authority or order has been passed for said financial year; than till how much time books of accounts are required to be maintained?
Provision stated for maintenance of books of accounts for cases where such appeal\revision is pending before authority or order has been passed for said financial year; than in that case assessee will be required to retain such books of accounts or a period of one year after final disposal of such appeal or revision or proceedings or investigation, or for the period of 72 months from due date of furnishing annual return, whichever is later.
By virtue of this it is clarified than generally period will be 72 months from due date of furnishing annual return; if in case any proceeding in form of appeal\revision\investigation is pending than in that case he will be required to maintain such account for 1 year from date of completion of such proceeding. In case if 1 year is completed before completion of 72 months from due date of furnishing annual return than in that case it will retain till completion of that period. On other hand it is possible that 72 months from due date of furnishing annual return has been completed, than in that case accounts are required to be retained for 1 year from date of final disposal of such appeal or revision or proceedings or investigation.
What will be penalty in case books or accounts are not maintained by assessee even if the assessee is liable to maintain such books of accounts?
There no specific penalty which has been prescribed for non-maintenance or retention of accounts but general penalty will be levied which will be Rs. 10,000 rupees or the amount of tax involved, whichever is greater. Further if the assessee fails to maintain proper records in respect of supply undertaken by him then the proper officer will treat such unaccounted goods/services as if the taxpayer had supplied them and he will be required to pay tax on them along with interest and penalty for non\delayed payment of taxes.