Books of accounts is a term which is used to record the transaction of your business and documents can be of hardcopy or softcopy like invoices, debit note, credit notes etc…Now under the GST it become necessary to maintain books of accounts and one of the important role of document is input credit. GST law has clearly mention the conditions on the basis of which input credit is claimed and one of which is ‘’maintaining invoices’’ without which you cannot claim Input credit which is paid by you on getting goods and services for your business.
Where to maintain books of Account???
Under the GST every registered person has to keep and maintain the records, at the PLACE OF BUSINESS in electronic or other forms. Place of business has been specifically defined under the CGST bill 2017 which includes
- a place from where the business is ordinarily carried on includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods services or both;
- a place where a taxable person maintains his books of account; or
- a place where a taxable person is engaged in business through an agent, by whatever name called;
Every owner or operator, of a place of storage, or every transporter whether such owner or operator or transporter is registered or not, shall maintain records and other relevant details as may be prescribed.
Type of documents to be maintained
Every registered person shall keep and maintain, at his principal place of business, a true and correct account of the following: –
1. Production or manufacture of goods;
2. Inward supply of goods or services or both;
3. Outward supply of goods and/or services or both
4. Stock of goods;
5. Input tax credit availed;
6. Output tax payable and paid; and
7. Such other particulars as may be prescribed in this behalf.
What if you have multiple businesses at multiple locations?
In case of multiple places of business, the accounts relating to each place of business shall be kept at the respective places of business concerned. Hence, all records are to be maintained at each place of business.
Persons who own/ operate any warehouse, godown, etc. for storage of goods and every transporter should maintain the records of the consigner, consignee and other relevant details of the goods, even if such persons are not registered under the Act – i.e., both registered and unregistered persons shall be required to maintain such records/ details.
Period for which accounts and records to be maintained
Normally retained until the expiry of 72 months from the due date for filing of Annual Return for the year pertaining to such accounts and records.