Section 35(1) read with Rule 56(7)

Every RP shall keep and maintain,

at his principal place of business (PPoB), as mentioned in the certificate of registration,

a true and correct account of—

(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) such other particulars as may be prescribed:

1^st Proviso – Accounts must also be kept for each additional place of business (APoB)

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.

Question & Answer

Circular No. 23/23/2017 - CGST dated 21-12-2017

In case where goods like tea, rubber, coffee, etc. are supplied through an auction the difficulties were being faced by the principal and auctioneer in maintaining books of accounts at each and every APoB related to stock of said goods.

Clarification

The principal and the auctioneer may declare the warehouses, where such goods are stored, as their APoB. The buyer is also required to disclose such warehouse as his APoB if he wants to store the goods purchased through auction in such warehouses.

For the purpose of supply of tea through a private treaty, the principal and an auctioneer may also comply with the said provisions.

Further, the principal and the auctioneer for the purpose of auction of tea, coffee, rubber etc., or the principal and the auctioneer for the purpose of supply of tea through a private treaty, may maintain the books of accounts relating to APoB at their PPoB instead of such APoB.

Such principal and auctioneer shall intimate their jurisdictional proper officer in writing about the maintenance of books of accounts relating to APoB at their PPoB.

ITC availment: Principal and the auctioneer for the purpose of auction of tea, coffee, rubber etc., or the principal and the auctioneer for the purpose of supply of tea through a private treaty, shall be eligible to avail ITC subject to the fulfilment of other provisions of the CGST laws.

Following accounts/records are required to be maintained in addition to records required above

Rule 56(1)

RP shall also keep and maintain, in addition to the particulars mentioned in section 35(1)

a true and correct account

of the goods or services imported or exported or

of supplies attracting payment of tax on RCM along with the relevant documents,

including invoices, bills of supply, delivery challans, CN, DN, receipt vouchers, payment vouchers and refund vouchers.

Rule 56(3)

Every RP shall keep and maintain a separate account of advances received, paid and adjustments made thereto.

Rule 56(5)

Every RP shall keep the particulars of –

(a) names and complete addresses of suppliers from whom he has received the goods or services chargeable to tax under the Act;

(b) names and complete addresses of the persons to whom he has supplied goods or services, where required under the provisions of this Chapter;

(c) the complete address of the premises where goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein.

Rule 56(2)

Every RP, other than a person paying tax u/s 10, [Composition delear]

shall maintain the 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.

Rule 56(4)

Every RP, other than a person paying tax u/s 10,[Composition dealer]

shall keep and maintain an account, containing the details of

tax payable (including tax payable u/s 9(3) or (4),

tax collected and paid,

input tax, input tax credit claimed, together with a register of tax invoice, CN, DN, delivery challan issued or received during any tax period.

Question & Answer

Rule 56(8)

Any entry in registers, accounts and documents shall not be erased, effaced or overwritten, and

all incorrect entries, otherwise than those of clerical nature, shall be scored out under attestation and thereafter, the correct entry shall be recorded and

where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained.

Rule 56(9)

Each volume of books of account maintained manually by RP shall be serially numbered.

Rule 56(18)

RP shall, on demand, produce the books of accounts which he is required to maintain under any law for the time being in force.

Rule 56(11)

Every agent referred in section 2(5) shall maintain accounts depicting the,-

(a) particulars of authorisation received by him from each principal to receive or supply goods or services on behalf of such principal separately;

(b) particulars including description, value and quantity (wherever applicable) of goods or services received on behalf of every principal;

(c) particulars including description, value and quantity (wherever applicable) of goods or services supplied on behalf of every principal;

(d) details of accounts furnished to every principal; and

(e) tax paid on receipts or on supply of goods or services effected on behalf of every principal.

Refer Section 2(5) for meaning of Agent

Rule 56(12)

RP manufacturing goods shall maintain monthly production accounts showing quantitative details of

raw materials or services used in the manufacture and

the goods so manufactured including the waste and by products thereof.

Rule 56(13)

RP supplying services shall maintain the accounts showing quantitative details of goods used in the provision of services, details of input services utilised and the services supplied.

Rule 56(14)

RP executing works contract shall keep separate accounts for works contract showing -

(a) the names and addresses of the persons on whose behalf the works contract is executed;

(b) description, value and quantity (wherever applicable) of goods or services received for the execution of works contract;

(c) description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract;

(d) the details of payment received in respect of each works contract; and

(e) the names and addresses of suppliers from whom he received goods or services.

Rule 56(17)

Any person having custody over the goods in the capacity of a carrier or a clearing and forwarding agent for delivery or dispatch thereof to a recipient on behalf of any registered person shall maintain true and correct records in respect of such goods handled by him on behalf of such registered person and shall produce the details thereof as and when required by the proper officer.

2^nd Proviso to section 35(1) read with Rule 56(7)

RP may keep and maintain such accounts and other particulars in electronic form on any electronic device.

Rule 57(1)

Proper electronic back-up of records shall be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within a reasonable period of time.  

Rule 57(2)

RP maintaining electronic records shall produce, on demand, the relevant records or documents, duly authenticated by him, in hard copy or in any electronically readable format.

Rule 57(3)

Where the accounts and records are stored electronically,

RP shall, on demand, provide the details of such files, passwords of such files and explanation for codes used, where necessary, for access and any other information which is required for such access along with a sample copy in print form of the information stored in such files

Rule 56(15)

The records under the provisions of this Chapter may be maintained in electronic form and the record so maintained shall be authenticated by means of a digital signature.

Section 35(2)

Every

owner or operator of warehouse or godown or any other place used for storage of goods and

transporter,

irrespective of whether he is a registered person or not,

shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.

Rule 58(4)(a)

Subject to the provisions of rule 56,-

transporter of goods shall maintain

records of goods transported, delivered and goods stored in transit by him along with the GSTIN of the RP and consignee for each of his branches.

Rule 58(4)(b)

Subject to the provisions of rule 56,-

every owner or operator of a warehouse or godown shall maintain books of accounts with respect to the period for which particular goods remain in the warehouse, including the particulars relating to dispatch, movement, receipt and disposal of such goods.

Rule 58(5)

The owner or the operator of the godown shall store the goods in such manner that they can be identified item-wise and owner-wise and shall facilitate any physical verification or inspection by the proper officer on demand.

Rule 58(1)

Every person required to maintain records u/s 35(2) if not already registered under the Act,

shall submit the details regarding his business electronically in GST ENR-01,

and, upon validation of the details furnished, a unique enrolment number shall be generated and communicated to the said person.

Rule 58(2)

The person enrolled u/sr (1) as aforesaid in any other State/UT shall be deemed to be enrolled in the State/UT.

Rule 58(3)

Every person who is enrolled u/sr (1) shall, where required, amend the details furnished in GST ENR-01 electronically

Rule 58[1][(1A)

For the purposes of Chapter XVI of these rules,

a transporter who is registered in more than one State/UT having the same PAN,

he may apply for a unique common enrolment number by submitting the details in GST ENR-02 using any one of his GSTIN, and

upon validation of the details furnished, a unique common enrolment number shall be generated and communicated to the said transporter:

Proviso – UCEN must be used in place of GSTIN

where the said transporter has obtained a unique common enrolment number, he shall not be eligible to use any of the GSTIN for the purposes of the said Chapter XVI.]

Rule 56(10)

Unless proved otherwise, if any documents, registers, or any books of account belonging to a RP are found at any premises other than those mentioned in the certificate of registration, they shall be presumed to be maintained by the said registered person.

Rule 56(6)

If any taxable goods are found to be stored at any place(s) other than those declared u/sr (5) without the cover of any valid documents,

the proper officer shall determine tax payable on such goods as if such goods have been supplied by RP.

Section 35(6)  

Subject to section 17(5)(h)

where RP fails to account for the goods or/and services as per sub-section (1),

the proper officer shall determine the amount of tax payable on the goods or/and services that are not accounted for, as if such goods or/and services had been supplied by such person and

the provisions of section 73 or section 74 shall, mutatis mutandis, apply for determination of such tax.

Section 35(3)  

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

Section 35(4)  

Where the Commissioner considers that any class of taxable person 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.

[2][Section 35(5)  

RP whose turnover during a FY exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and

shall submit a copy of the audited annual accounts, the reconciliation statement u/s 44(2) and such other documents in such form and manner as may be prescribed.

1^st Proviso - Audit is not applicable to

Nothing contained in this sub-section shall apply

to any department of the CG/SG or a local authority,

whose books of account are subject to audit by the C&AG of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force

Refer Para 44.3 for complete guide on Audit requirement

Question & Answer