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How to Accounts and Records Under GST

Accounts and Records Under GST

The registered dealers are required to maintain their account and keep the records under GST Law as under:-

  • Compliance verification in GST will be done through examination of accounts and records maintained, only if required.
  • One tax, one type of record:- No need to maintain separate records for different type of taxes as in the era of VAT, Excise and Service Tax.
  • There will be freedom to choose the format of the accounts and records, and only information needed is prescribed. The records can take the form of paper-based source documents including computer printouts or digital records.
  • The  required records are:-
    1. All records of goods and services that person supplies or receives in the course of business.
    2. All records of goods imported.
    3. Any other supporting documents such as contracts and price quotation to show his liability to GST.
  • Digital GST:- Records can be maintained in electronic format as well.
  • Where a certain class of taxable persons can not keep and maintain records as prescribed, the Commissioner may permit them to maintain records otherwise as prescribed.
  • Taxable persons with turnover of less than 2 crores are not required to get their accounts audited or submit reconciliation statement with annual returns.
  • Simple records to be kept by agents, transporters and warehouse keepers:-
    1. Agents:- A person working as an agent is required to maintain records depicting the description, value and quantity (where ever applicable) of goods or services received or supplied on behalf of principal, and details of accounts furnished to every principal.
    2. Transporters:-  A person engaged in the business of transporting goods is required to maintain simple records of goods transported and delivered, and goods stored in transit by him.
    3. Warehouse Keepers:-  A person operating a warehouse or godown is required to keep records with respect to the dispatch, movement, receipt, disposal and period for which the goods remain in the warehouse or godown.

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Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.