Maintenance of records and accounts under GST

With the advent of GST, a new phase of Indirect Tax regime begins in our country. However, the said change in taxation also has a huge impact on the accounting regime and accordingly various accounting records to be maintained by businesses under GST.

Following is the list of records required to be maintained under GST:

  • Register of Goods Produced, in case of Manufacturers;
  • Purchase register;
  • Sales register;
  • Stock register;
  • Input tax credit availed;
  • Input tax credit availed;
  • Output tax liability;
  • Output tax paid;
  • Other specific records, as may be notified by Government from time to time.

 

The GST registered person shall need to maintain the following accounts (in respect of the GST):

  • Input CGST A/c;
  • Output CGST A/c;
  • Input SGST A/c;
  • Output SGST A/c;
  • Input IGST A/c;
  • Output IGST A/c

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. A registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed.

 

 

Accounting entries under GST:

1. At the time of Purchase of Goods/ Expenses (Intra-state) Dr. Cr.
       
  Purchase/ Expense A/c…………. Dr XXX
  Input CGST A/c………………….. Dr XXX
  Input SGST A/c………………….. Dr XXX
         To Creditors XXX
 
2. At the time of Purchase of Goods/ Expenses (Inter-state)
       
  Purchase/ Expense A/c…………. Dr XXX
  Input IGST A/c………………….. Dr XXX
         To Creditors XXX
 
3. At the time of Sale of Goods/ Services (Intra-state)
 
  Debtor A/c……………………..Dr XXX
         To Sale of goods/ services XXX
         To Output CGST A/c XXX
         To Output SGST
 
4. At the time of Sale of Goods/ Services (Inter-state)
 
  Debtor A/c……………………..Dr XXX
          To Sale of goods/ services XXX
          To Output IGST A/c XXX
 
5. Adjustment of Output tax with Input tax
 
  Output CGST A/c……………. Dr XXX
          To Input CGST A/c XXX
          To Input IGST A/c XXX
          To Cash/ Bank A/c XXX
 
  Output SGST A/c……………. Dr XXX
          To Input SGST A/c XXX
          To Input IGST A/c XXX
          To Cash/ Bank A/c XXX
 
  Output IGST A/c……………. Dr XXX
          To Input IGST A/c XXX
          To Input CGST A/c XXX
          To Input SGST A/c XXX
          To Cash/ Bank A/c XXX

 

Period for maintenance of books of accounts:

All the books of accounts along with all the documents, invoices, tax payment challans, etc shall be preserved for the period of 6 years from the due date of furnishing of annual return for the year pertaining to such accounts and records

Example: Period of Retention for Accounts of Financial Year 2017-18 – If the annual return for the FY 2017-18 is filed on say December 30, 2018, then the books of account and other records are to be maintained till December 30, 2024.

 

Audit requirement under GST:

A taxpayer whose turnover is more than Rs. 1 crore in a financial year shall get his accounts audited by a Chartered Accountant or Cost Accountant. A copy of audited annual accounts and reconciliation statement is required to be submitted in form GSTR-9B while filing the annual return in Form GSTR‑9.

 

For all the GST related queries and assistance, please visit our website: www.businesssuvidha.com; or mail us at info@businesssuvidha.com or call us at +91-9654438893/ 9953109399.

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