1:  What is meant by accounts?

In general parlance, accounts means a record or statement of transactions, events, financial expenditure and receipts relating to a particular period or purpose.

2:  Who is required to maintain accounts under GST regime?

As per the provisions of section 35 of CGST Act, 2017, every registered person shall maintain accounts. Further, every owner or operator of warehouse, which is used for storage of goods and every transporter, irrespective of whether they are registered person or not, shall also maintain records.

3:  Where accounts are required to be kept?

Every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration. However, where there is more than one place of business and all are specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business.

4:  What are the details required to be mentioned in accounts or records?

Every registered person shall keep and maintain, a true and correct account of the goods or services imported or exported or of 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 and refund vouchers.

5:  Which information in respect to stock should be kept while maintaining records?

Every registered person, other than composition dealer, shall maintain the accounts of stock in respect of goods received and supplied by him, and such accounts shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and the balance of stock including raw materials, finished goods, scrap and wastage thereof.

6:  How to maintain the records for any advance received during course of business?

Every registered person shall keep and maintain a separate account of advances received, paid and adjustments made thereto.

7:  How registered person who is engaged in manufacturing of goods will keep accounts and records?

Every registered person, engaged in manufacturing of goods, shall maintain monthly production accounts showing 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.

8:  How registered person, who is supplying services, will keep accounts and records?

Every registered person supplying services shall maintain the accounts showing quantitative details of goods used in the provision of services, details of input services utilised and the services supplied.

9:  What details are required to be recorded by registered person executing works contract?

Every registered person executing works contract shall keep separate accounts for works contract showing -

(a) The names and addresses of the persons on whose behalf the works contract is executed;

(b) Description, value and quantity (wherever applicable) of goods or services received for the execution of works contract;

(c) Description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract;

(d) The details of payment received in respect of each works contract; and

(e) The names and addresses of suppliers from whom he received goods or services.

10:  Can accounts be maintained in electronic forms?

Yes, as per second proviso to Section 35 (1) of CGST Act, 2017 read with Rule 57 of CGST Rules, 2017 registered person may keep and maintain such accounts and other particulars in electronic form. However, proper electronic back-up of records shall be maintained and preserved, so that in the event of destruction of such records due to accidents or natural causes, the information can be restored within a reasonable period of time.

11:  How the access of accounts and records shall be provided to government authority?

Ans11. As per sub rule 3 of Rule 57 of CGST Rules, 2017, where the accounts and records are stored electronically by any registered person, he shall, on demand, provide the details of such files, passwords of such files for access and any other information which is required for such access along with a sample copy in print form of the information stored in such files.

12:  How owner or operators of warehouse or transporter, who are not registered under the act, maintain records?

Where owner or operator of warehouse or transporter, who are not registered under the act, shall submit the details regarding their business electronically on the common portal in Form GST ENR-01 and upon validation of the details so furnished, a unique enrolment number shall be generated and communicated to the said person.

13:  What records are required to be maintained by person engaged in transportation of business?

As per the provisions of section 35 (2) of CGST Act, 2017 read with Rule 58 of CGST Rules, 2017, any person who is engaged in the business of transporting goods shall maintain records of goods transported, delivered along with details of goods stored in transit. He shall also record Goods and Services Tax Identification Number (GSTIN) of the registered consigner and consignee for each of his branches.

14:  What records are required to be maintained by owner or operator of a warehouse or godown?

As per the provisions of section 35 (2) of CGST Act, 2017 read with Rule 58 of CGST Rules, 2017, every owner or operator of a warehouse or godown shall maintain books of accounts with respect to the period for which particular goods remain in the warehouse. He shall also record the information relating to dispatch, movement, receipt and disposal of such goods.

15:  Whether accounts so maintained by registered person are required to be audited?

In case, turnover of the registered person exceeds the prescribed threshold limit, he shall be required to get his accounts audited by either chartered accountant or cost accountant. Further, he shall also submit the copy of audited accounts along with reconciliation statement.

16:  For how many years, accounts and records are required to be preserved?

As per section 36 of CGST Act, 2017, every registered person, who is required to keep and maintain books of account, shall retain them until the expiry of seventy-two months from the due date of furnishing of annual return for the year pertaining to such accounts and records.

17:  What is the time limit for preserving accounts and records where an appeal has been filed or is under an investigation?

As per proviso to section 36 of CGST Act, 2017, where a registered person, is a party to an appeal or revision or any other proceedings before any Appellate Authority or Revisional Authority or Appellate Tribunal or court, whether filed by him or by the Commissioner, or is under investigation for an offence, then he shall retain the books of account and records pertaining to the subject matter in question for a period of one year after final disposal of such appeal or revision or proceedings or investigation, or for the period of seventy-two months from the due date of furnishing of annual return, whichever is later.