35.1 Prescribed books of accounts must be kept and maintained at PPoB and also for APoB

Question-1 [ICAI-F-M18-O-7a-4] [Provision of Section 35(1)]

Mr. Bala, a registered person at Chennai wants to maintain proper accounts and records relating to GST. Advise him about the accounts and other records to be maintained under section 35(1) of the CGST Act, 2017.

Answer

Mr. Bala, is required to maintain a true and correct account of following under section 35(1) of the CGST Act, 2017:

(a) production or manufacture of goods;

(b) inward and outward supply of goods or services or both;

(c) stock of goods;

(d) input tax credit availed;

(e) output tax payable and paid; and

(f) other prescribed particulars

The records may be maintained electronically. Where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business should be kept at such places of business

Question-1A [ICMA-I-D19-7d-5]

Items for which true and correct accounts are to be maintained.

Answer

True and correct maintenance of accounts under section 35(1) of the CGST Act, 2017

As per section 35(1) of the CGST Act, 2017, every registered person is required to maintain a true and correct account of the following:

a. Production or manufacture of goods.

b. Inward and outward supply of goods or services, or both

c. Stock of goods

d. Input tax credit availed

e. Output tax payable and paid

f. Any other particulars deemed necessary

Question-1B [ICMA-F-D18-6a-7]

Explain the accounts and records required to be maintained by registered person under GST law.

Question-1C [ICSI-E-D21-O-82-1]

Under which section of the CGST Act, 2017 a registered person is required to maintain proper accounts and records and keep it at his registered principal place of business?

(A) Section 22; (B) Section 35; (C) Section 36; (D) Section 24

Question-2 [ICSI-E-D20-85-1] [ICSI-E-J18-O-83-1] [Type of Accounts & Records to be maintained]

A registered person as per section 35 of the CGST Act, 2017 is required to maintain proper accounts and records and keep at his registered, principal place of business. Find out from the following list of records which records are being specified under this section required to be maintained by the registered person:

(i) Production or manufacturing of goods

(ii) Inward and Outward supply of goods or services or both.

(iii) Stock of goods

(iv) Input credit availed

(v) Output tax payable and paid

(vi) Such other particulars/records as may be prescribed

(A) (i), (iii) & (iv)

(B) (i), (ii), (iii) & (v)

(C) (i), (iii), (iv), (v) & (vi)

(D) All the six as given in above

Question-3 [ICSI-E-D21-93-1] [Principal Place of Business]

Every registered person as per section 35 of the CGST Act, 2017 required to maintain the necessary accounts and other records at the ...................... and all such records could be electronic or manual.

(A) place of an accountant address

(B) place of the proprietor/partner/director address

(C) principal place of business

(D) address of any place as given

Question-4 [ICAI-F-M22-4(b)(ii)-2] [Additional Place of Business]

GoToDress is a chain of stores dealing in readymade garments through five showrooms in Delhi. It has a single GSTIN for all its showrooms in Delhi and has a principal place of business at Karol Bagh, Delhi. One of the consultants has suggested GoToDress to maintain books of accounts of all of its five showrooms at principal place of business at Karol Bagh, Delhi for better administration and control. Give your comment on the above advice according to the provisions of GST law.

Comment on above situations relating to GST procedures. Your answer should include relevant provisions of law, as may be applicable.

Answer

The suggestion of the consultant is not correct. Every registered person is required to keep and maintain, his books of accounts at his principal place of business.

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.

35.2.4 Records which is to be maintained only by regular dealer but not by Composition dealer

Question-1 [ICAI-F-M19-6a-5]

The supplier opting for composition levy need not maintain certain records as per rule 56(2) and 56(4) of the CGST Rules, 2017. Explain

Answer

As per rule 56(2) and 56(4) of the CGST Rules, 2017, the supplier opting for composition levy need not maintain the following records:

(i) Accounts of stock in respect of goods received and supplied by him, and such accounts shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and the balance of stock including raw materials, finished goods, scrap and wastage thereof.

(ii) Account, containing the details of tax payable (including tax payable under reverse charge), tax collected and paid, input tax, input tax credit claimed, together with a register of tax invoice, credit notes, debit notes, delivery challan issued or received during any tax period.

35.6.6 Audit requirement of Accounts has been deleted wef 01-08-2021

Question-1 [ICMAI-I-D19-1(c)(i)-1]

The first type of Audit under GST is to be done by Chartered Accountant only. [T/F]