Learn how GST holders can maintain accounts and records under GST regulations. Get a detailed guide on registers, ITC tracking, tax payment records, and compliance to avoid penalties.
Accounts and Other Records as per Section 35 of the CGST Act
- Mandatory Maintenance of Accounts and Records
As per Section 35(1), every registered person must keep and maintain the following records:
- Production Records
- Details of goods manufactured.
- Example: A factory producing furniture must record the type, quantity, and date of production.
- Details of goods manufactured.
- Stock Records
- Information about opening balance, received stock, stock used, and closing balance.
- Example: A retailer must track inventory like the number of laptops available daily.
- Information about opening balance, received stock, stock used, and closing balance.
- Sales and Purchases
- Comprehensive records of all outward (sales) and inward (purchases) supplies.
- Example: Record details such as date, invoice number, customer or supplier name, and tax paid.
- Comprehensive records of all outward (sales) and inward (purchases) supplies.
- Input Tax Credit (ITC)
- Maintain records of ITC availed, utilized, and balances.
- Example: A business claiming ITC on purchases of raw materials must track all such claims.
- Maintain records of ITC availed, utilized, and balances.
- Output Tax Liability
- Records showing GST liability on sales and payments made towards it.
- Records showing GST liability on sales and payments made towards it.
- Details of Job Work
- Information related to goods sent for job work and received back.
- Example: A clothing brand sending fabric for stitching must record details of the vendor and timelines.
- Information related to goods sent for job work and received back.
2. Additional Records for Specific Categories
As per Rule 56 of the CGST Rules, additional records may be required for certain businesses:
- Transporters: Must maintain records of consignor, consignee, and goods transported.
- Warehouse Keepers: Must record stock details stored on behalf of others.
3. Electronic Maintenance of Records
Records can be maintained electronically but must be authenticated with a digital signature.
4. Retention Period
Under Section 36, records must be retained for 8 years from the due date of filing the annual return for the financial year.
5. Audit and Inspection
- GST officers can inspect these records during audits or investigations.
- Non-compliance with Section 35 can lead to penalties under Section 122 of the CGST Act.
Consequences of Non-Maintenance
- Penalty: ₹25,000 under Section 122.
- Potential disputes during audits.
