What are the accounts and records under GST?
As per GST law, every registered business must maintain proper and accurate records of its business activities at its main office (as mentioned in the GST registration certificate).
What are the records to be maintained by registered business?
Whether you're selling goods or services, you should keep the following records:
- Production
Records (for manufacturers):
If you manufacture goods, keep monthly records showing how much raw material and services you used, how many goods you produced, and details of any waste or by-products. - Sales
& Purchases (Inward and Outward Supplies):
Maintain records of all purchases and sales—whether goods or services. - Stock Records:
- If you sell goods, maintain details of opening stock, goods received, sold, lost, destroyed, given away (as free samples), or written off.
- If you provide services, keep track of materials used in delivering those services.
- Input
Tax Credit (ITC):
Keep a detailed record of ITC claimed, tax collected, paid, invoices, credit/debit notes, and delivery challans. - Tax
Payable & Paid:
Track how much GST you owe and how much you have paid. - Imports
& Exports:
Maintain records of imported/exported goods or services along with relevant documents (like invoices, vouchers, etc.). - Reverse
Charge Supplies:
Keep details of any purchases where you're liable to pay GST under the reverse charge mechanism. - Advance
Payments:
Maintain a record of any advances received, paid, and adjusted.
You must also maintain the names and addresses of:
· Your suppliers and customers
· Locations where goods are stored, including goods in transit
Important: If goods are found stored at any location without proper documents, tax may be imposed on them as if they were sold.
If you’re doing contract work (like construction), you need to maintain:
- Client details
- Goods/services used and received
- Payments received
- Supplier details
What is are the records to be maintained by Transporters & Warehouse Operators?
Even if not registered under GST, you must:
- Keep records of consignment details
- Track movement and storage of goods
- Ensure goods can be identified clearly for inspection
You also need to enrol on the GST portal using Form GST ENR-01 to get an enrolment number. Registered transporters with multiple GSTINs can apply for a unique common enrolment number using Form ENR-02.
If you’re acting on behalf of someone else:
- Keep records of your authorizations
- Goods/services received or supplied for each principal
- Taxes paid and reports given to the principal
Even if you're not selling the goods immediately, keep records (delivery challans, invoices, etc.) when sending them overseas for exhibitions or promotions.
What Happens if You Don't Maintain Proper Records?
If you fail to maintain records or account for your goods or services, the GST officer can assume that you have sold those goods/services and calculate tax accordingly.
However, if goods are lost, stolen, destroyed, given away as gifts, or free samples, different rules apply.
Where Should You Keep GST Records?
You must keep all your GST-related records:
· At your main place of business, as mentioned in your GST registration.
· If you have multiple business locations, you must keep records at each of those places too.
If you're maintaining manual books, they must be serially numbered.
Digital Records Are Allowed – You can store records on a computer or cloud, but these must be accessible when needed.
What If Goods Are Stored in a Transporter’s Warehouse?
In such cases:
· The transporter must maintain records as if they are running a warehouse.
· You (the registered taxpayer) must also maintain details of such goods in your records at your principal place of business.
What are the rules for businesses involved in Auctions of Goods like Tea, Coffee, Rubber?
For businesses involved in auctions:
· Both the owner (principal) and the auctioneer must declare the warehouse as their additional place of business.
· Records can be kept either at the warehouse or, if difficult, at the main office—but you must inform your GST officer in writing.
· Buyers storing goods post-auction in a warehouse must also declare it as an additional place of business.
Can we maintain GST Records in Electronic Format?
Yes. If you're keeping records digitally, follow these rules:
· Take regular backups to avoid data loss.
· On request, provide records in readable format (print or digital).
· Be ready to share passwords or explanations for encrypted files, along with sample printed copies.
How Long Do You Need to Keep GST Records?
You must keep all your GST-related documents for at least 72 months (6 years) from the due date of filing the annual return for that year.
This includes:
· Invoices
· Credit/Debit Notes
· Delivery Challans
· Stock records, etc.
For digital records, they must be accessible from the place listed in your GST registration.
However, If you are involved in any appeal, revision, or court case, or under investigation, keep related records for the longer of:
· 6 years from the due date of annual return, OR
· 1 year after the case is finally closed
Can we Correct Entries in our Records?
You cannot erase or overwrite entries. If an error is made:
· Strike out the wrong entry (with signature)
· Record the correct entry next to it
For electronic records, a log must be kept showing what was changed or deleted.