Maintenance of Accounts and Records under GST India

Section 42 of GST India deals with Maintenance of accounts and records and Section 43 of GST India deals with the period “of retention of accounts and records.

Section 42 of GST law India deals with Maintenance of accounts and records:

Every registered taxable person must keep and maintain at his principal place of business mentioned in certificate of registration True and correct account of

  1. Production or manufacture of goods.
  2. Inward and outward supply of goods/services.
  3. Stock of goods.
  4. Input credit availed.
  5. Output tax payable and paid.

Other particulars as may be prescribed by rules and regulations framed in this regard.
Provided that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business concerned: Provided further that the registered person may keep and maintain such accounts and other particulars in the electronic form in the manner as may be prescribed.

The [Commissioner/Chief Commissioner] may notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified.

Where the [Commissioner/ Chief Commissioner] considers that any class of taxable persons is not in a position to keep and maintain accounts in accordance with the provisions of this section, he may, for reasons to be recorded in writing, permit such class of taxable persons to maintain accounts in such manner as may be prescribed.

Every registered taxable person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit to the proper officer a copy of the audited statement of accounts, the reconciliation statement under sub-section (2) of section 30 and such other documents in the form and manner as may be prescribed in this behalf.

Section 43 of GST India deals with the period of retention of accounts and records:

Every registered taxable person required to keep and maintain books of account or other records under sub-section (1) of section 42 shall retain them until the expiry of sixty months from the last date of filing of Annual Return for the year pertaining to such accounts and records:

Provided that a taxable person, who is a party to an appeal or revision or any other proceeding before any Appellate Authority or Tribunal or Court, whether filed by him or by the department, shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceeding for a period of one year after final disposal of such appeal or revision or proceeding, or for the period specified under sub-section (1), whichever is later.

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