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Let us understand the accounts and records you should maintain under GST 

Under GST, the activities of manufacture, provision of taxable service and sale of goods will have a common law and hence, businesses can now maintain consolidated information which was maintained separately earlier.

Under GST, every registered taxable person is required to maintain the following accounts:

  • Purchase register should be maintained for all the purchases made within a tax period for manufacturing of goods or provision of services
  • Sales register should be maintained for account of all the sales made within a tax period
  • Stock register containing correct stock of inventory available at any given point of time should be maintained
  • Register for Input Tax Credit Availed should be maintained to mention the details of Input Tax Credit availed for a given tax period
  • Output Tax Liability register which should maintain the details of GST liability outstanding to be adjusted against input credit or paid out directly
  • Output Tax Paid register which should maintain the details of GST paid for a particular tax period
  • The account that we have discussed so far are common for all registered taxpayers. There is one more register called Register of Goods Produced which should contain detail of goods manufactured in a factory or production house. It should be maintained by every assessee carrying out manufacturing activity.
  • In addition to maintaining the accounts specified above, a registered person whose turnover during the financial year exceeds Rs 1 crore is required to get the accounts audited by a Chartered Accountant or Cost Accountant and submit a copy of the audited annual accounts and a reconciliation statement in Form GSTR- 9B while filing the annual return in Form GSTR-9.
  • Every registered person is required to retain accounts and records for 5 years from the due date of filing of annual return for the year to which the accounts and records pertain.

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