02 Mar CGST Rules Regarding Accounts and Records
In adherence to the CGST Rules, Chapter 7 outlines the meticulous requirements for maintaining accounts and records by registered individuals or entities. These regulations ensure transparency and accuracy in financial documentation, crucial for tax compliance and audit scrutiny.
- Maintenance of Accounts by Registered Persons: Registered individuals must maintain comprehensive records of goods/services imported or exported, as well as supplies subject to reverse charge. This includes meticulous documentation such as invoices, delivery challans, credit notes, and payment vouchers.
- Stock Management: Apart from individuals under section 10, registered persons are obliged to manage stock accounts meticulously. These accounts should cover various aspects like opening balances, receipts, supplies, losses, disposals, and stock balances including raw materials, finished goods, scrap, etc.
- Accounting for Advances: A separate account of advances received, paid, and adjustments made must be maintained by every registered person.
- Tax-related Accounts: Detailed records of tax payable, collected, and paid, along with input tax credit claimed, must be upheld. This includes maintaining registers of tax invoices, credit notes, and debit notes issued or received.
- Supplier and Customer Details: Registered persons are required to maintain particulars of suppliers' and customers' names, addresses, and premises where goods are stored, along with stock details.
- Penalty for Non-compliance: Failure to declare taxable goods stored elsewhere may result in the assessment of tax liability as if those goods were supplied by the registered person.
- Documentation Integrity: Entries in registers and documents must not be altered or erased. Incorrect entries, except those of clerical nature, should be struck out under proper attestation, with corrections duly recorded.
- Serial Numbering and Presumption Clause: Manual account volumes must be serially numbered, and documents found elsewhere are presumed to belong to the registered person unless proven otherwise.
- Maintenance by Agents and Contractors: Agents must maintain accounts reflecting authorization from principals, goods/services received/supplied, and taxes paid on behalf of each principal.
- Specific Requirements for Different Businesses: Manufacturers, service providers, and contractors must maintain specific accounts detailing production, services provided, and works contract specifics, respectively.
- Electronic Records and Authentication: Records maintained electronically must be authenticated by digital signatures.
- Transporters and Warehouse Owners: Transporters must document goods transported, while warehouse owners must maintain detailed accounts of goods stored.
- Enrolment and Amendments: Individuals required to maintain records must enroll electronically and amend details as necessary.
Compliance with these rules ensures accountability, facilitates audits, and contributes to a transparent tax regime, thereby fostering trust and efficiency in the business ecosystem.
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