Understanding GST Account and Record-Keeping Regulations

This document outlines Chapter 7 of the Central Goods and Services Tax (CGST) Rules, which details the requirements for maintaining accounts and records. The information is derived from the official CGST Rules document (source).

Account Maintenance for Registered Individuals

All registered persons must accurately keep records beyond those specified in sub-section (1) of section 35. These records should include details of imported or exported goods and services, supplies subject to reverse charge tax, and related documents like invoices, bills of supply, delivery challans, credit and debit notes, and various vouchers.

Individuals registered under GST, excluding those paying tax under section 10, must maintain stock accounts for goods received and supplied. These accounts should detail the opening balance, receipts, supplies, goods lost, stolen, destroyed, written off, or given as gifts or free samples, along with the remaining stock of raw materials, finished goods, scrap, and waste.

A separate account must be maintained by every registered person for advances received, advances paid, and any adjustments made to these advances.

Registered persons, other than those paying tax under section 10, are required to keep an account containing particulars of tax payable (including tax under sub-sections (3) and (4) of section 9), tax collected and paid, input tax, and claimed input tax credit. This account must be accompanied by a register of tax invoices, credit notes, debit notes, and delivery challans issued or received during each tax period.

Every registered person must maintain specific particulars, which include:

• The full names and addresses of suppliers from whom taxable goods or services have been acquired under the Act.
• The full names and addresses of individuals to whom goods or services have been supplied, as mandated by this Chapter's provisions.
• The complete address of all premises used for storing goods, including those held in transit, along with detailed stock information for each location.

If taxable goods are discovered stored at undeclared locations without valid documentation, the appropriate officer will assess the tax due, treating such goods as if they were supplied by the registered person.

Books of account must be kept at the principal place of business and any additional business locations specified in the registration certificate. These records can also include electronically stored data on any digital device.

Entries in registers, accounts, and documents must not be erased, effaced, or overwritten. Non-clerical incorrect entries must be struck out and attested, with the correct entry then recorded. For electronic records, a log of all edits or deletions must be maintained.

Each manual volume of books of account maintained by a registered person should be sequentially numbered.

Unless proven otherwise, any documents, registers, or books of account belonging to a registered person found at premises other than those stated in their registration certificate will be presumed to be maintained by that registered person.

Agents, as defined in clause (5) of section 2, are required to maintain accounts that clearly show:

• Specific authorization details received from each principal to handle goods or services on their behalf.
• Details such as description, value, and quantity (where applicable) of goods or services received for each principal.
• Details such as description, value, and quantity (where applicable) of goods or services supplied for each principal.
• Records of accounts provided to each principal.
• Tax paid on receipts or supplies conducted on behalf of each principal.

Every registered person engaged in manufacturing goods must keep monthly production accounts. These accounts should show quantitative details of raw materials and services consumed in manufacturing, as well as quantitative details of the finished goods produced, including any waste and by-products.

Registered persons providing services must maintain accounts detailing the quantitative information of goods utilized in service provision, input services consumed, and the services rendered.

Registered persons undertaking works contracts must keep distinct accounts for each contract, indicating:

• The names and addresses of individuals for whom the works contract is being executed.
• Description, value, and quantity (if applicable) of goods or services obtained for the execution of the works contract.
• Description, value, and quantity (if applicable) of goods or services utilized in the execution of the works contract.
• Payment particulars received for each works contract.
• The names and addresses of suppliers from whom goods or services were procured.

Records governed by this Chapter may be kept in electronic format and must be authenticated using a digital signature.

All accounts, invoices, bills of supply, credit and debit notes, and delivery challans related to stocks, deliveries, inward, and outward supplies must be retained for the period specified in section 36. If maintained manually, these documents must be kept at every relevant business location mentioned in the registration certificate. If maintained digitally, they must be accessible at all such related business locations.

Any individual holding goods as a carrier or a clearing and forwarding agent for delivery or dispatch on behalf of a registered person must keep accurate records of such goods. These records must be presented to the proper officer upon request.

Registered persons are required to produce any books of account they are mandated to maintain under any current law, when demanded.

Creating and Maintaining Electronic Records

Proper electronic backups of records are essential. They must be maintained and preserved to ensure that information can be recovered within a reasonable timeframe if records are lost due to accidents or natural disasters.

Registered persons who maintain electronic records must, upon request, provide the relevant records or documents. These must be properly authenticated, either as a hard copy or in a readable electronic format.

If a registered person stores accounts and records electronically, they must, when requested, provide details of the files, passwords, and explanations for any codes used to access the information. They must also provide any other necessary access information, along with a printed sample copy of the stored information.

Record Keeping for Godown/Warehouse Owners and Transporters

Any individual required to maintain records and accounts under sub-section (2) of section 35, if not already registered under the Act, must submit their business details electronically on the common portal using FORM GSTENR-01. This can be done directly or via a Facilitation Centre. After validation, a unique enrolment number will be generated and sent to the individual.

An individual enrolled under sub-rule (1) in one State or Union territory is automatically considered enrolled in any other State or Union territory.

Persons enrolled under sub-rule (1) must amend the details provided in FORM GST ENR-01 electronically on the common portal, either directly or through a Facilitation Centre, whenever necessary.

Subject to rule 56, specific record-keeping requirements apply:

• Individuals involved in transporting goods must maintain records of goods transported, delivered, and stored in transit. This includes the Goods and Services Tax Identification Number (GSTIN) of both the registered consigner and consignee for each branch.
• Every owner or operator of a warehouse or godown must maintain books of account detailing the duration specific goods remain in the warehouse. This includes particulars related to the dispatch, movement, receipt, and disposal of such goods.

The owner or operator of a godown must arrange goods in a manner that allows for item-wise and owner-wise identification. They must also facilitate any physical verification or inspection by the proper officer upon demand.